Dialogue Group is launching a global A2P (Application-to-Person) SMS initiative help cellcos win a share of $5 billion in annual revenues currently being lost to the grey messaging market.
The A2P SMART (secure monetization of application related traffic) Hub to support 250 of the largest mobile operators who have yet to address the significant revenue drain being caused by both the current presence and potential further growth of grey messaging.
“The rock bottom pricing that the grey market permits leads to disorderly markets, damaging levels of spam, and potential security threats, all of which are sources of poor customer experience and increased churn,” Perry Offer, CEO of Dialogue Group.
An A2P message delivered via a grey route connection is originated from a source outside of the operator’s own network, typically using a channel ordinarily reserved for carrying P2P communications.
A grey route A2P message can be sent when access to P2P channels is open for third parties to deliver A2P messaging, often without the recipient network even realising this is the case.
As the P2P connections can carry no fee, they are extremely profitable for the sending third party when used to deliver A2P. This is because they charge a transaction fee for each message they deliver to their customers against which there is no cost from the recipient operator.
With Dialogue’s SMART approach to managing A2P traffic, this loss of revenue can be eliminated for the recipient network.
“Not only will this benefit operators in terms of increased revenue, but also enterprises, banks and handset manufacturers in terms of quality of service,” said Offer. “With two factor verification being used as an added security feature, the 100% on-net SMART A2P hub we are launching will ensure that messages reach the recipient in a timely manner.”