In a ground-breaking study developed in partnership with VOX Solutions, Juniper Research sheds light on the ever-evolving world of A2P (Application-to-Person) SMS pricing. The findings highlight significant discrepancies in the pricing strategies of mobile network operators across key global regions.
Recent data unveils that over 3 trillion A2P SMS messages were delivered globally in 2022, averaging a staggering 8.2 billion messages daily. Despite such robust numbers, many mobile operators are yet to implement optimal pricing strategies that would maximise revenue from this burgeoning business messaging traffic.
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While SMS remains a dominant force in the A2P messaging traffic landscape, its market share is projected to decline over the coming years. It underscores the urgency for mobile operators to reassess and recalibrate their pricing strategies to drive positive topline impact, ensuring the long-term sustainability of their A2P SMS business.
Highlights from Juniper Research:
- In 2022, over 3 trillion A2PÂ SMS messages were delivered globally, averaging 8.2 billion per day
- The wholesale pricing for A2PÂ SMSÂ remains unpredictable with disparities across key regions
- Despite its ubiquity, most Mobile Network Operators (MNOs) are yet to optimise pricing, leading to potential revenue losses
- The evolving A2P landscape requires dynamic pricing strategies that align with regional benchmarks and discern between national and international services
- The ability to identify SMS use cases, such as OTPs, notifications, and marketing, can aid in more consistent and accurate pricing
“One of the prime challenges that the industry faces is the unpredictable nature of wholesale SMS pricing. This unpredictability is not just a global phenomenon but also a regional one, with stark variations in average pricing across different areas. Therefore, mobile operators need to be agile, employing strategic pricing models that resonate with the market’s needs and drive sustainable growth” said Ehsan Ahmadi, CEO & Founder of VOX Solutions.
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Adding to this, Sam Barker, VP of Telecoms Market Research from Juniper Research commented, “The intricate web of A2P SMS pricing is a reflection of the diverse strategies employed by operators. But, as the market dynamics shift, it’s imperative to revisit, realign, and recalibrate pricing structures to remain competitive and relevant.”
Juniper Research emphasises the need for mobile operators to re-evaluate, innovate, and adapt in these dynamic times to ensure they capitalise on the immense potential that the A2P SMS market offers.
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