In the realm of A2P messaging, a pivotal revenue source for mobile network operators, the specter of revenue leakage looms large, driven by fraudulent exploits of grey routes and unconventional delivery methods.
What is the Market Problem?
A2P messaging stands out as a crucial revenue stream. However, the financial stability associated with A2P messaging faces a considerable threat – revenue leakage. This challenge is primarily fueled by fraudulent practices exploiting grey routes and unconventional delivery methods.
A2P messaging is not just a revenue stream; it’s a lifeline for mobile network operators. Termination fees from aggregators, enterprises, and messaging providers constitute a significant portion of income. However, the vulnerability lies in conventional “Legacy Pipes” that struggle to differentiate between A2P and P2P messages.
What is Revenue Leakage?
The industry’s dependence on Legacy Pipes creates an opening for revenue leakage. These networks lack the intelligence to discern the intricacies of messaging traffic, leading to differentiated price exploitation, international and national grey routes, and the troublesome presence of SIMBOX devices.
Factors Contributing to Revenue Leakage
Exploiting Price Differences
Operators charge different rates for terminating A2P and P2P messages, leading to exploitation by A2P providers.
International Grey Routes
Interconnect agreements between operators in different countries are exploited, allowing the free exchange of traffic assumed to be P2P.
National Grey Routes
Local aggregators use national interworking agreements to deliver messages to all operators, leading to revenue leakage based on price point differences.
International A2P Traffic on Domestic A2P Routes
Operators position international A2P access at a premium, but cost differences frustrate this strategy, leading to substantial international traffic delivered through local aggregators.
Use of SIMBOX Devices
Large-scale SIM Farms, on-network or off-network, exploit bulk SMS bundles to send A2P messages at a low cost, causing significant revenue loss.
The Openmind Networks Solution to Revenue Leakage
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To combat revenue leakage effectively, Openmind Networks presents a comprehensive Revenue Assurance Service, addressing challenges through robust detection and enforcement strategies.
Service Scope
Openmind Networks takes a proactive approach to detect and address revenue leakage, focusing on Grey Routes and SIM Boxes.
Detection and Enforcement Options
Detection involves identifying both Grey Routes and SIM Boxes, with enforcement actions requiring proper authorization from the Service Consumer.
Openmind Networks’ Revenue Assurance Service is the definitive solution to revenue leakage problems faced by operators. By combining cutting-edge technology with expert consultancy, Openmind Networks empowers operators to preserve their revenues and protect subscribers’ experiences.
To learn more about the topics covered in this article, or to discuss how Openmind Networks can help prevent revenue leakage on your network, please get in touch at [email protected] or contact our team of experts online here.