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How MNOs Can Maximize Monetization of A2P and P2A Messaging

Securing Messaging Services – The Key Driver for Maximizing Monetization

In recent years, mobile network operators (MNOs) and mobile virtual network operators (MVNOs) have undergone a turbulent phase in terms of revenues. While network expansion demands have increased CAPEX and OPEX, revenues have not been proportional with voice and messaging usage, decreasing after 2012 while over-the-top (OTT) services have grown almost exponentially. Mobile broadband and data usage has risen proportionally with the demand for OTT services to a point where MNOs and MVNOs feared relegation to wireless and mobile bit pipe providers.

Over the last few years, SMS-based messaging has seen a revival, growing to 8.3 trillion messages (24% of the total messages sent, annually) from 6.7 trillion, which it dipped to after a peak of 9 trillion in 2012. Application-to-person (A2P) messaging and person-to-application (P2A) messaging have shown encouraging growth in the last two years, with their combined revenues rising from 25% to 40% of the total annual messaging revenue. Juniper Research estimates that A2P (and P2A) revenues will reach US$70 billion by the end of 2016, indicating a significant market opportunity. A2P alone is estimated to reach 31% of the total annual messaging traffic.

To learn more, read the SAP Thought Leadership paper on the growth of A2P messaging and opportunities to monetize on it, attached below:

Arti Yadav,
Director, Strategic Go-To-Market projects
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