EBULLETIN #1 News and insights on mobile messaging - Mahindra Comviva
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eBULLETIN #1
News and insights on mobile messaging
SUPPORTED BY
FEATURING
WHAT’S NEXT FOR
MOBILE MESSAGING?
FROM MAHINDRA COMVIVA’S
HEAD OF MESSAGING
& BROADBAND
ADITYA DHRUVA
MOBILE MESSAGING
FRAUD REPORT
CLX COMMUNICATION’S
ROBERT GERSTMANN
REVIEWS THE FINDINGS
A2P MARKET FORECASTS
MOBILESQUARED’S
NICK LANE ADDS INSIGHT
PLUS: MESSAGING NEWS
ROUND-UP, CONVERSATIONAL
COMMERCE AND INDUSTRY
STATS & FACTS
3 FOREWORD
4 WHAT’S NEXT FOR MOBILE MESSAGING?
INSIGHT FROM ADITYA DHRUVA
HEAD OF MESSAGING & BROADBAND AT MAHINDRA COMVIVA
6 MOBILE MESSAGING FRAUD REPORT
ANALYSIS FROM ROBERT GERSTMANN
MD FOR CLX ENTERPRISE DIVISION
8 NEWS ROUND UP
NEWS & ANALYSIS FROM ACROSS THE MOBILE MESSAGING ECOSYSTEM
11 MARKET FORECASTS A2P 2015-2020
NICK LANE, CHIEF INSIGHT ANALYST FROM MOBILESQUARED
12 CONVERSATIONAL COMMERCE
MEF’S COO JOANNE LACEY DISCUSSES THE POTENTIAL OF CONVERSATIONAL COMMERCE
13 INDUSTRY STATS & FACTS
MEF MESSAGING EDITION eBULLETIN #1 2
FOREWORD
RIMMA PERELMUTER
CEO, MEF
W
elcome to the Mobile Messaging edition of MEF’s eBulletin series
which takes a look at the issues, business models and market drivers
that shape the enterprise messaging space.
It features news, views and stats from across this exciting and dynamic channel.
From enabling developers to create tools for engagement to driving authentication,
m-commerce and marketing, A2P messaging continues to see fantastic growth as it
captures more verticals and expands use cases to evolve as a robust and secure market.
Analysts forecast strong revenues for A2P messaging, with Mobilesquared predicting
growth of more than $4 billion this year alone. In this issue, the analyst firm’s Chief
Insight Analyst, Nick Lane, shares market forecasts for 2015 – 2020 and discuses how
mobile operators are key to unlocking the multi-billion dollar SMS ecosystem whilst
MEF’s COO, Joanne Lacey, looks at another, much-hyped, driver of engagement via
messaging – conversational commerce.
The channel is of course not without its challenges which is why MEF launched the
Future of Messaging Programme in 2015 to bring together stakeholders from across
the value chain to combat fraud and provide a forum for market development.
Some of the issues being tackled by the group are featured in this edition of the
eBulletin including contributions from Aditya Dhruva, Head of Messaging and
Broadband at Mahindra Comviva discussing the challenge of revenue leakage and
Robert Gerstmann’s, MD for CLX Enterprise Division, analysis of the recently published
MEF Messaging Fraud Report 2016. The report looks at trust in the channel and shines
the spotlight on the problem of spam and SMiShishing based on data from 6,000
consumers across nine countries.
Later this year, MEF’s Working Group will publish its first set of guidelines to tackle
some of the fraud types identified in the Fraud Framework launched earlier this year. It’s
essential that we work together as an industry to ensure that the channel remains
trusted and continues to enjoy sustained growth. We hope you enjoy this Mobile
Messaging eBulletin and consider getting engaged in this pivotal industry initiative.
You can find out more information on the programme at:
www.futureofmessaging.com
MEF MESSAGING EDITION eBULLETIN #1 3
MOBILE
WHAT’S
NEXT FOR
MESSAGING?
ADITYA DHRUVA
W
hilst revenue leakage continues to hobble the A2P HEAD OF MESSAGING & BROADBAND AT
messaging industry, there are many more
opportunities to bring messaging to new sectors.
Here Aditya Dhruva, Head of Messaging and
Broadband at Mahindra Comviva discusses why taking
a multi-layered, multi-channel approach to enterprise messaging
will put the consumer first and boost the A2P market.
The telecom sector’s increasing focus on digitization has created a Enterprises that are dependent on standalone platforms for SMS,
plethora of challenges and opportunities for enterprises. USSD, or over-the-top services find it difficult to move from one
channel to another.
One recent McKinsey report showed that 70% of customers rate their
purchase experience based on the how a brand Yet the diversity of messaging platforms is in
engages with them. Elsewhere, Forrester
Research has stated that a 10% improvement in “WHERE ONCE fact an advantage for enterprises because new
multi-channel solutions, such as Mahindra
a company’s customer experience score can ENTERPRISES Comviva’s Ngage, have simplified the creation
translate into a $1 billion plus impact on and delivery of the messaging process by
revenue. LARGELY providing tools that allow personalised
It follows that businesses now need to aim at
DEPLOYED SMS OR targeting, control and filtering of unwanted
messages and strict adherence to existing
ensuring constant customer engagement. EMAIL TO ENGAGE contact policies across a range of messaging
In this context it’s unsurprising that the mobile
THEIR CUSTOMERS, options.
device has emerged as the primary tool in the NOW THERE ARE And crucially, by providing a range of messaging
engagement process. And today, with a 90%
open-rate, it is enterprise or A2P SMS that both MANY MORE channels, usually SMS, USSD and MMS,
enterprises and operators are able to offer their
endures as the most reliable channel to achieve OPTIONS AND customers choice over their preferred channel
consumer engagement and going forward of communication, ie, taking a customer centric
shows the most opportunity for growth. CONSUMER view. Typically that breaks down as: SMS
To give that some context, A2P messaging is
PREFERENCES (75-85%), USSD (10-15%), MMS (5-10%).
already widely used across a range of industry WITH MMS, PUSH The multi-channel approach results in a more
sectors:
MESSAGING AND engaged consumer with a 15-20% increase in
campaign effectiveness.
• Retail (order confirmation, delivery NEWER CHANNELS
dispatches, delivery updates)
• Finance (alerts, transaction verifications) LIKE CHAT APPS.” Fraud, trust and revenue leakage
• Transport (freight/asset monitoring, Mobile intelligence firm, Mobilesquared, recent
delivery tracking, connected car, navigation, ticketing) report on the enterprise messaging market
• Healthcare (clinic search, test results, information indicates that the market value of A2P messaging was $12.88 billion
dissemination) in 2015 and forecasts it to grow to $58.75 billion by 2020.
• Logistics (tracking shipments, delivery times, pick-ups and
delays) Yet before revenue from A2P messaging is leveraged to the fullest,
challenges such as grey routes (where an operator’s P2P messaging
And as the A2P market gains traction, new use cases and sectors are network is used for A2P messaging services) need to be tackled.
coming to the fore. These include interactive surveys, social
media-based communication, multi-channel marketing campaigns Since P2P SMS is economical, it can be purchased and used for grey
and more. At the other end of the spectrum, financial uses such as route A2P services. In absence of any binding agreement, revenues
one-time passwords (OTP) and natural disaster alerts are registering are accrued only by operators whose network is used for message
significant uptake. termination. The operator on whose network the message was
fraudulently initiated loses revenue.
At the same, consumers have diverse preferences when it comes to
digital engagement. Where once enterprises largely deployed SMS or
email to engage their customers, now there are many more options
with MMS, push messaging and newer channels like chat apps and
other IP based forms of communication which are gaining traction in
markets with high a penetration of smartphones and high-bandwidth
network capabilities.
MEF MESSAGING EDITION eBULLETIN #1 4
Grey routes are a growing concern for operators, and they have to
continuously evolve their learning methods to safeguard their
network against grey routes and other fraud mechanisms.
Whilst strict regulation and compliance will help reduce the intensity
of the problem, grey routes are loopholes that will
continue to exist. Operators must invest in end-end
security solutions that will identify and analyse
grey routes, and ring fence the network to
curb them by supporting subscriber “…ENTERPRISES WILL
centric communication policies. STILL CONTINUE TO USE SMS
Mobilesquared estimates that as AS A CHANNEL FOR CRITICAL
much as 65% of the A2P market is AND HIGH PRIORITY
operated as grey route traffic and NOTIFICATION AND
that figure will drop to 19% with the
roll-out of next-generation SMS
AUTHENTICATION BECAUSE
revenue assurance platforms. In IT IS RELIABLE, UBIQUITOUS
other words, the drop in grey route AND UNLIKE OTT MESSAGING
traffic alone will help drive operator DOESN’T REQUIRE THE USER
revenue in the messaging ecosystem.
TO OWN A SMARTPHONE OR A
In addition to revenue leakage, the 4G OR WIFI NETWORK
volume of spam messages continues to FOR ITS OPERATION.”
increase. And whilst spam utilizes
tremendous network capacity, as well as cost in
the form of termination fees, it is also an annoyance
to consumers whom are in danger of becoming increasingly
alienated from the messaging process.
Best practice and the future
The security provided by mobile networks, the rising penetration of
mobile phones combined with the high open rates of SMS messages
continues to fuel the uptake of A2P messaging. However, without a
clear picture of grey route traffic, it is likely that mobile operators will
lose out to SMS aggregators.
As a measure to build out enterprise messaging its therefore
imperative to employ strong anti-spam platforms, that both enable
the deployment of multi-channel messaging and adhere to
regulation.
Furthermore, whilst today chat apps and OTT messaging are largely a
P2P endeavour, in the coming months and years many of these
players will seek ways of opening their API’s for the enterprise
messaging market. This will allow enterprises to focus on
applications, push notifications and other IP based
communication.
However, enterprises will still continue to use SMS as a
channel for critical and high priority notification and
authentication because it is reliable, ubiquitous and
unlike OTT messaging doesn’t require the user to own
a smartphone or a 4G or WiFi network for its
operation.
MEF MESSAGING EDITION eBULLETIN #1 5
MOBILE MESSAGING
FRAUD REPORT 2016:
PUTTING SPAM UNDER THE MICROSCOPE
ROBERT GERSTMANN
MD FOR CLX ENTERPRISE DIVISION
onsumers are embracing messaging in all its forms and
C in the enterprise space its areas such as two-factor
authentication, notification and marketing that are
driving the market. It’s also an unfortunate fact that
with any significant form of digital interaction,
fraudsters seek to exploit consumers with sharp practices.
A recent report from MEF and CLX Communications – Mobile
Messaging Fraud Report 2016 - found 26 per cent of chat app
users get an unsolicited message every day, while 49 per cent
receive at least one a week. With SMS it’s a similar story. More
HAVE YOU EVER RECEIVED A than a quarter of consumers (28 per cent) receive an unsolicited
SMS message every day with 58 per cent report receiving one
TEXT MESSAGE (SMS) FROM every week.
SOMEONE PRETENDING TO BE
The majority of unsolicited mobile messages are of course just a
SOMEONE THEY ARE NOT, E.G., nuisance – notifying consumers of an un-wanted offer or service.
However 33 per cent said that they had received a SMiShing
YOUR BANK OR A COMPANY message aiming to trick them into disclosing personal data such
as bank details or passwords for online services.
THAT YOU HAVE AN ONLINE
ACCOUNT WITH, ASKING FOR Here, Robert Gerstmann, MD for CLX Enterprise Division takes a
look at the report findings.
PERSONAL ACCOUNT
MEF’s Messaging Fraud Report provides a remarkable update on
INFORMATION OR FOR MONEY? how the messaging ecosystem is evolving and how some newer
mobile messaging channels are increasingly being polluted by
unsolicited and fraudulent messages.
It’s interesting to note that although the SMS channel
receives the highest daily occurrence of unsolicited
messages it remains the most trusted. This is likely
because the percentage of spam messages is still a tiny
fraction at less than one per cent overall. When
compared to the nearly 50 per cent on email, SMS is still
a clean and powerful channel. It’s also extremely
surprising that over-the-top messaging apps only lag
behind SMS by two per cent in daily occurrence, yet
SMS is by far more ubiquitous and open.
NO YES
45% 33%
DON’T KNOW
21%
MEF MESSAGING EDITION eBULLETIN #1 6
HOW OFTEN DO YOU RECEIVE UNSOLICITED TEXT MESSAGES (SMS) MESSAGES?
NEVER OCCASIONALLY ONCE A MONTH ONCE A WEEK 1 – 3 TIMES A WEEK EVERY DAY 47%
36%
35%
34%
33% 33%
31%
28% 28%
27%
25%
24%
23%
20% 21% 22%
20% 20% 20% 20%
19% 19% 19%
18% 18%
17% 17% 17%
16% 16%
14% 15% 15%
13% 13%
11% 10% 12% 12%
10% 11% 11% 11%
10% 8% 10% 10%
9%
8% 8%
7% 7%
6% 6% 6% 6% 6%
5%
4%
3%
GLOBAL
In our experience there has always been a high correlation between In our view there are a number of things that can be done in order to
the cost to deliver a message and the amount of spam and fraud the reduce fraud and spam across all channels;
channel attracts. It could be argued that the reason for low levels of
spam in Germany and France is directly related to: 1. Create a global shortcode, long number or email that can be used
to report unsolicited messages. The easier we make it, the more
a.) The cost to send a message through legitimate routes is relatively people will do it. And ensure that the resulting reports are shared
high in those countries b.) The effectiveness of local operators in across the ecosystem in an automated way so that they can be acted
those countries to block fraudulent routes into their networks and on by key players.
filter spam is very good.
2. Operators must continue to install SMS and SS7 firewalls into their
By contrast India, Nigeria and South Africa have a cost for sending a networks to prevent grey and fraudulent routes from being exploited
message that is relatively low, and although things are improving and used for sending spam and phishing messages.
rapidly these networks have historically been less protected. As a
consequence the incidents of spam are high. 3. OTT messaging apps must close holes in their systems that allow
individual user accounts to send large amounts of unsolicited
It is also true that in many mobile first countries consumers are less marketing messages undetected.
likely to have email addresses and SMS therefore acts as a substitute
for email marketing. 4. When OTT messaging apps finally allow for sanctioned Enterprise
to Consumer messages to be sent legitimately via an API, they must
Cost, (or lack of it) may be the reason why 72 per cent of users have seriously consider charging something meaningful to deliver the
received unsolicited messages on over-the-top (OTT) messaging message so as to ensure that both fraudsters and overzealous
apps such as Whatsapp, yet no official APIs exist for sending marketers do not abuse the channel.
Enterprise to Consumer messages on many of these platforms yet.
5. Cloud communication providers like CLX must innovate and
This is a cause for concern as it indicates that fraudsters are using implement better ways to validate the identity of companies to
weaknesses in the person to person capabilities of these apps to ensure that phishing attempts are thwarted early and often.
send messages on behalf of enterprises. These apps will need to
tread carefully when they do decide to open their apps up to All of the above recommendations will be presented and discussed at
legitimate enterprise communications. They would not want to the MEF Future of Messaging Programme with the intention of
replicate the fate of push notifications, where overzealous marketers getting adoption across the ecosystem and driving real change to
have caused this channel to be trusted by jus 16 per cent of the protect and improve the consumer experience of mobile messaging
6,000 respondents. and the Mobile Messaging Fraud Report 2016 can be
downloaded here for free.
It could be argued that the reason why most people in the UK report
unsolicited messages on SMS is because the operators have done a
good job in collaborating on creating a cross operator shortcode
(7726) that can be used to report such messages. In addition, there is
a perception that regulators in the UK and the USA will prosecute
offenders which is not always the case in other mobile first countries.
MEF MESSAGING EDITION eBULLETIN #1 7NEWS ROUND-UP
NEWS AND ANALYSIS FROM ACROSS THE MOBILE MESSAGING ECOSYSTEM
GOOGLE LAUNCHES ITS ALLO STANDALONE
MESSAGING APP
Android users have a new richer
messaging option to rival Apple’s
iMessage: Allo. GREY ROUTES COULD LEAK $62 BILLION OUT
OF THE INDUSTRY OVER SIX YEARS
Google first announced Allo in May,
and has now rolled it out officially.
The app incorporates AI and search Operators could lose out on $62 billion if they fail to tackle grey route
tech, so it can suggest automatic messaging traffic, says a new study.
replies to conversations, or offer up
search-related suggestions. For example, if you’re talking about Juniper Research found that, despite building firewalls and other
movies, it may surface local showing times. security measures, operators are still leaking revenue to companies
that bypass legitimate SMS channels. Indeed, grey route traffic now
Obviously, Google needs to do something in messaging given the accounts for more than 30 per cent of all A2P messages.
progress made by iMessage, Facebook and WhatsApp etc. The firm
believes Allo is more sophisticated than them all. However, its Juniper says that the creation of high-volume, low cost SMS bundles
capabilities have promoted more questions around privacy. by operators is contributing to the problem. It also highlights the
possibility that OTT companies might enter the A2P market by the
end of the decade.
NINE OUT OF TEN CONSUMERS WANT BRANDS
TO MESSAGE THEM REPORT: A2P SMS BYPASS AT “ALARMING LEVELS”
People really want to talk to Research from Dialogue Group says
companies via messaging apps - but 77 per cent of mobile networks are
most enterprises are not set up to not fully protecting themselves
respond, says a study by Twilio. from A2P SMS bypass.
It surveyed more than 6,000 consumers across North America, The company looked at 199 networks in 84 countries, and found that
Europe and Asia and concluded that 85 per cent actively desire for 14 per cent of them all traffic was terminated via bypass
two-way conversations with brands. channels. 37 per cent were found to have significant bypass activity.
Only 23 per cent were unaffected.
Regrettably, it also found that less than half of global businesses
have the infrastructure in place to fulfil this customer demand. Dialogue said grey route activity was the most widespread problem,
impacting 51 per cent of networks. Termination via domestic
"Today's report highlights a growing divide between consumers and interconnect links was next, at 38 per cent. SIM farms and SIM box
brands," said Manav Khurana, vice president of product marketing at bypass were detected in 14 per cent of networks.
Twilio. "Consumers message more than they call, email or even post on.
GLOBAL MOBILE AND CLX COMMUNICATIONS
TELEFÓNICA GROWS ITS A2P BUSINESS BY 22 TEAM UP ON TEXT VOTING
PER CENT IN A YEAR
US voters can use SMS alerts to get information on their registration
Enterprise messaging is on the up at status, voting information and polling locations - thanks to a market trial.
Telefonica, which reported a 22 per cent
jump in 2015. Georgia and Colorado have been working on
the scheme, which is powered by with Global
The firm predicts SMS as a channel for business comms will grow for Mobile and messaging provider CLX.
the next ten years. It says the ubiquity of SMS and the fact that 90 Administrators believe it may encourage
per cent of texts are read in minutes makes it perfect for enterprise Millennials, who are less inclined to vote but more inclined to use
messaging. digital devices for accessing information.
James Lasbrey, global head of messaging at Telefónica, said: “While Petter Bengtsson VP of US Sales at CLX Communications, said: ‘We
the (messaging) market has developed with the success of free apps are really pleased to be working with Global Mobile on this new
such as WhatsApp, Snapchat and Facebook Messenger, the potential initiative. Short-codes provide consumers with a memorable and
of SMS for business is unrivalled.” easy way to communicate with businesses that can drive real results’.
MEF MESSAGING EDITION eBULLETIN #1 8INFOBIP OPENS OFFICE IN BEIJING
ADAPTIVEMOBILE GREY ROUTE CONTROLS Croatia’s messaging specialist Infobip has invested 5 million euros in
SAVED ONE OPERATOR $44 MILLION its Chinese expansion, and now it has a dedicated office in the capital.
The company opened a Shenzhen office in December 2015, and
It pays to fight back against grey routes - to the tune of tens of already serves a number of Chinese internet and tech firms with
millions, says AdaptiveMobile. services such as two-factor authentication, mobile number validation,
notifications and omni-channel campaigns.
The digital security specialist launched its Grey Route Controls service
in March 2015 and reports that one of the largest mobile operators in “We’re honoured to be part of the country’s amazing tech ecosystem,
Africa recaptured $44.4 million a year because of it. which is rapidly shaping itself into one of the world’s principal IT
centres,” said Silvio Kutic, Infobip’s founder and CEO.
AdaptiveMobile says the impact of grey route traffic on mobile
operators could be worth up to $4 billion per year in lost revenue. Its
Network Protection Platform interrogates individual messages on the
basis of behaviour, reputation and content. Operators can use it to AMAZON ENTERS THE CHAT BOT FRAY: HIRES
spot and curtail grey traffic. “HEAD OF NEW BOT PRODUCTS”
US tech giants are determined to make
FACEBOOK TESTS PAYMENTS INSIDE CHAT BOTS conversational commerce a ‘thing’, and now
Amazon has joined the race.
US users of Facebook Messenger can make It has appointed Navid Hadzaad’s as its “head
payments to brands inside a messaging stream of new bot products”. Hadzaad was the
without leaving the app. founder of Angel.ai, a bot company that
originally launched as virtual assistant
Facebook wants to move to a world in which GoButler, but then pivoted into a natural language processing
people can have conversations with bots inside technology.
Messenger as if they were humans. Thus,
Facebook Messenger now hosts hundreds of bots. This led some reports to suggest Amazon had bought Angel.ai, which
Mostly, they answer simple questions like ‘where’s my it denied. But the hire reflects Amazon’s interest in conversational
order?’ and so on. But payments represent a step up. commerce. Unsurprising given the e-commerce status of Amazon and
the success of its intelligent assistant Echo
But now the company has confirmed that it is testing the idea. The
blog said: “Payments can now be integrated into messages, making it
easy for customers to shop and purchase without leaving the app.
Messages with payments utilise industry-leading controls and MILLENNIALS PREFER TO HEAR FROM
financial information is protected with bank-level encryption.” BUSINESSES VIA TEXT
Facebook expects to roll out this capability by the end of the year.
Young adults would rather get a text from a company than an email or
phonecall, says a new study from OpenMarket.
RESTAURANTS GET THEIR OWN The firm polled 500 US millennials, aged 18-34, and found they are
CONVERSATIONAL COMMERCE OPTION highly accessible to
businesses through
SMS. In fact, 83 per cent
Two US start ups, Olo and Conversable, have teamed up said they open a text
to help restaurants provide menu or ordering options within 90 seconds of
inside popular messaging apps. receiving it.
It means customers can place orders and view live item availability by The study revealed they’d like to do more. 60 per cent of millennials
having conversations on Twitter, Kik and Facebook Messenger. They said they want to be able to text their preferred businesses, but
can pay via a link to a secure server which is connected to the currently 20 per cent don't receive any texts from business at all.
restaurant’s POS system
Nearly half would like to receive fraud alerts from financial service
providers (only 19 percent currently are), while 80 per cent would
prefer to text a 1-800 number rather than call and go on hold.
MEF MESSAGING EDITION eBULLETIN #1 9NICK LANE
MARKET FORECASTS CHIEF INSIGHT
ANALYST AT
A2P 2015-2020 MOBILESQUARED
THE MULTI-BILLION DOLLAR
A2P MESSAGING
Globally mobile operators are facing a shakeout in their messaging
revenues as the volume of sending messages person-to-person
REVENUE
tumbles and new technologies like chat apps with new business
models continue to gain market share. The A2P messaging market
on the other hand continues to grow despite the widespread
OPPORTUNITY
practice of sending those messages via grey routes.
Here, Nick Lane, Chief Insight Analyst from Mobilesquared
discusses the extent of the grey route issue based on data from its
recently published report - Global A2P messaging forecasts by To convert that figure into mobile operator lexicon, each year $20
country 2015-2020 – putting some numbers on the potential size of million worth of potentially fraudulent traffic is reaching its subscrib-
the market. ers, which could be anything between one to four billion individual
SMS messages. These are messages that could be phishing, contain
One of the most telling comments at the recent future of A2P malware, or just irritating unsolicited marketing messages. Either
messaging roundtable held by Mobilesquared in conjunction with way, there is a serious negative impact on the mobile operators’ brand
AdaptiveMobile was that mobile operators are most interested in equity and relationship with their customers, not to mention the cost
securing their network and protecting their subscribers from any of dealing with subsequent issues, such as the call centre costs
potential threat. While we as an industry talk about the opportunity associated with complaints.
and potential billions of dollars available via A2P messaging, it is the
impact of fraud that is striking the biggest chord. The view from the roundtable was that this is just the beginning.
Mobilesquared research and analysis confirms that the enterprise is
What grey route traffic is starting to understand how
remains something of a grey SMS can be used to communi-
area, but for the purposes of STILL A $60B MARKET? cate with its customers. So
this article, we shall assume much so that they will spend an
A2P SMS REVENUES $
it is the umbrella term for all 80 additional $4.33 billion on A2P
non-commercialised messages globally in 2016
70
messaging traffic, i.e. a compared to 2015. We project
commercial agreement is 60
the global A2P messaging
not in place between two market will be worth $17.21
mobile operators. 50 billion by the end of this year, up
BILLIONS
from $12.88 billion in 2015.
40
Mobilesquared’s research That’s year-on-year growth of
into A2P messaging 30 33% and we project the market
highlights the negative to accelerate from 2017.
20
effect grey-route traffic is
having on the A2P 10
But as more enterprise money
ecosystem and mobile is invested in A2P messaging
operator revenues in - the greater the appeal for
2010 2011 2012 2013 2014 2015 2016 2017 2018
particular. On average, the fraudulent activity. It is incum-
A2P industry is INDUSTRY GROWTH TO DROP FROM AN AVERAGE OF 260% YEAR-ON-YEAR bent on mobile operators to
haemorrhaging money at a TO 5% YEAR-ON-YEAR FROM 2015 ONWARDS. secure their networks and
rate of $13.7 billion per year *BASED ON AVAILABLE INDUSTRY DATA, NOT MOBILESQUARED DATA
protect their subscribers. At
to grey-route traffic. present, the data reveals that
15% of mobile operators have invested in the platform, and that figure
Right now, grey-route traffic accounts for 65% of total A2P will be just over 50% by 2020.
messaging yet yields approximately one-tenth of the revenue per
message compared to the cost-per-message of white route. Between 2015-2020, cumulative revenues for A2P messaging will be
Between 2015-2020, Mobilesquared forecasts that the revenue $185.5 billion. However, had all grey traffic been converted into white
leakage caused by grey-route messaging will cost the A2P traffic by the start of 2015, the A2P space would generate $267.6
ecosystem upwards of $82 billion. billion over the same period.
Put another way, on average, each mobile operator is losing over Nevertheless, the global A2P messaging market will be worth $58.75
$100 million over the forecast period, or $20 million per annum. billion in 2020 as mobile operators invest in next-generation SMS
revenue assurance platforms to convert unwelcome and potentially
fraudulent grey-route traffic into money-spinning white-route traffic.
MEF MESSAGING EDITION eBULLETIN #1 10UNLOCKING THE POTENTIAL OF
CONVERSATIONAL
JOANNE LACEY
COMMERCE
COO MEF
There’s a scene in Friends in which Joey is being typically slow to
catch on to some juicy bit of gossip. As his mind whirls, exasperated
Chandler can take it no more. He roars: “Get there faster!”
Consumers apparently appreciate this sentiment.
‘Getting there faster’ or rather reducing friction is
a key driver of tech innovation. iTunes got “FROM THE
consumers to music quicker than going to the ENTERPRISE AND
store. Netflix beat Blockbuster by From the enterprise and brand perspective it
sidestepping the need for customers to BRAND PERSPECTIVE enables them to communicate with their
walk to the video shop. eBay triumphed customers in powerful new ways at
largely because PayPal made it easy to IT ENABLES THEM TO reduced costs. They appear more
buy in one click. The list goes on. COMMUNICATE WITH approachable. Available 24/7.
Most of people don’t actually like to shop THEIR CUSTOMERS IN However, the highly personal nature of the
or buy or pay. Of course we like the end messaging environment and data being
result but the actual transaction of shopping
POWERFUL NEW shared also means enterprises need to
is just the bit in the middle and anything that WAYS AT REDUCED ensure they are adding real value to the
reduces the time spent on it to the bare consumer through the interaction otherwise
minimum is considered a good thing. The same COSTS.” the result could be negative and may cause users
goes for any kind of brand interaction: checking to move to less intrusive messaging platforms.
product details, making a complaint, finding
directions etc. Classic cases of ‘get there For a bot to be effective it must be part of a
faster’. service that has already gathered information
about the end user from multiple data-points
In the last 12 months, the noise around so that it can understand and process
brand engagement and relationship building personal preferences. Examples might
being driven by ‘conversational commerce’ include shopping habits, access to calendars
has grown steadily louder. It describes people and even more sensitive information like
talking to brand representatives via mobile banking transactions. Good stewardship of
messages (whether via SMS or chat apps). personal data and full transparency will be
And the brand representative might be a person, or essential if ‘conversational commerce’ is truly to
it might be a ‘bot’ - AI that uses machine-learning help brands engage with their customers and build
and context to come across like a real person. “FULL better relationships.
The trend came to life in 2015 when Uber TRANSPARENCY Of course consumers have shown again and again
integrated Facebook Messenger and enjoyed a WILL BE how much they like to interact via messaging. MEF
further resurgence when Facebook opened up its recently published a study of messaging habits. It
Messenger app to third party chat bots earlier this ESSENTIAL IF revealed that A2P text alerts have become
year enabling developers to create bots so that commonplace. For example, 33% of people have
people chat with organisations to get information,
‘CONVERSATIONAL received a text from their bank.
answer questions and transact. COMMERCE’ IS
There’s also already momentum around
From a consumer perspective, this is arguably a TRULY TO HELP message-based personal assistants. Companies
considerable improvement. BRANDS ENGAGE like Operator and Magic offer people one shortcode
they can text to contact ’experts to help you find
Take this hypothetical scenario. You’re leaving for WITH THEIR what you want, when you want.’
the airport and you want to the check flight details.
You could open the airline app (or indeed first go to
CUSTOMERS AND Conversational commerce as part of an enterprise’s
the app store app and download the airline app), BUILD BETTER engagement has the potential to make significant
then type your login and browse various menus to impact radically changing customer service and call
find the different bits of information you need. RELATIONSHIPS.” centres or reducing traffic to web pages. There has
been much debate whether it has the potential to
Alternatively you could just text your airline ‘bot’ erode the dominance of apps. Only time will tell.
and ask “what’s my itinerary?’ The bot already But this consumer shift and the potential
knows who you are because your phone has identified you. It replies disruption wrought by the simple power of typing a sentence into a
immediately with all your details. The answer might contain links and text box should not be under estimated.
pictures too.
MEF MESSAGING EDITION eBULLETIN #1 11INDUSTRY TRENDS & STATISTICS
1 Mobile intelligence firm, Mobilesquared, has released a Databook Beyond mobile marketing it is use
indicating that the A2P messaging market was worth $12.88
billion in 2015 and will rise to $58.75 billion in 2020. cases such as authentication and
2 The same report also forecasts that the rollout of more notification that are driving the
next-generation SMS revenue assurance platforms will see
grey-route messages drop from 65% of total A2P global traffic in 2015
messaging market.
to 19% by 2020.
3 According to MEF’s messaging report, 65% of consumers Here’s 14 statistics that
communicate with businesses on chat apps; increasing to 76%
globally via SMS. explore that growth.
4 Moreover, 1 in 3 users have interacted with a financial services
company via mobile messaging with authentication acting as a
key driver – 30% of consumers worldwide have confirmed passwords
via text.
5 Globally, the banking and financial services and retail sectors are
set to be major verticals and contributing more than 40% of
market share for A2P SMS market growth.
IN THE LAST 12 MONTHS, HAVE YOU SENT OR RECEIVED A TEXT
MESSAGE (SMS) OR MESSAGING APP MESSAGE TO/FROM ONE THE
33% FOLLOWING COMPANIES OR INSTITUTIONS
26% 24% 24%
23%
17% 16% 15% 15%
NONE OF
THE
ABOVE
BANKING PROMO WEB/EMAIL EXISTING EDUCATION BOOKING EMPLOYER HEALTH
ORDER
6 Elsewhere, Telefonica’s Text Economy Report forecasts that
banks, retailers and OTT providers themselves will account for
11 OpenMarket in collaboration with Portio Research has forecast
that businesses will send over 1.7 trillion A2P messages in 2016.
60% of global A2P messaging traffic by 2017.
A customer engagement survey by Ovum and Tata
12 Communications showed that SMS, by a wide margin, remains
7 Consumers prefer SMS. According to the Direct Marketing
Association poll, 44% of respondents would rather receive product the preferred way to maintain contact with consumers with more
details and marketing messages via SMS. than 50% of respondents indicating that they expected their use of
SMS, email and social media to increase over the next 12-24 months.
8 Analyst firm Statista indicates that the volume of A2P messages
was 1,625 billion in 2015, and will rise to 1,762 billion by 2018. 13 MEF’s Future of Messaging Working Group estimates that
SMiShing alone contributes $680 million to the annual $2 billion
9 Credence Research goes further, forecasting two trillion A2P fraud cost currently borne by mobile operators. And consumers.
messages a year by 2017.
14 Unsolicited messages threaten consumer trust. MEF’s 2016
10 The global A2P share of SMS traffic has nearly doubled in the last
five years from 11.7% in 2010 up to 22.4% in 2015.
fraud report shows that 26% of chat app users and 28% of SMS
users receive a spam message every day. And 33% have received a
SMiShing (SMS phishing) message.
MEF MESSAGING EDITION eBULLETIN #1 12ABOUT MAHINDRA COMVIVA
Mahindra Comviva is the global leader in providing mobility solutions. It is a subsidiary of
Tech Mahindra and a part of the USD 16.5 billion Mahindra Group. With an extensive
portfolio spanning mobile finance, content, infotainment, messaging and mobile data
solutions, Mahindra Comviva enables service providers to enhance customer experience,
rationalize costs and accelerate revenue growth. Its mobility solutions are deployed by
over 130 mobile service providers and financial institutions in over 90 countries,
transforming the lives of over a billion people across the world.
For more information, please visit www.mahindracomviva.com
MEF MESSAGING EDITION eBULLETIN #1 13NOW IN IT S 3 R D Y E A R
MESSAGING
& SMS WORLD
29 & 30 November 2016, London @CapacityEvents | #SMSWorld
THE ONLY MEETING FOR THE GLOBAL
MESSAGING COMMUNITY
FEATURES FOR 2016
V
MESSAGING & SMS MEF WORKSHOP LANTERN MESSAGING NEW VENUE
WORLD AWARDS EVENING PARTY
HEAR FROM KEY DRIVERS OF THE SMS AND MESSAGING INDUSTRY:
Rob Malcolm Roy Timor-Rousso Tony Jamous
VP Marketing & Online GM President & Co-
Sales KANDY FRING Founder
CLX NEXMO
COMMUNICATIONS
James Lasbrey Simon Thorpe Jorge Vargas
Head of Wholesale Head of Product Head of Strategic
Messaging TWILIO Partnerships
TELEFÓNICA WIKIMEDIA
Lead sponsors:
Associate sponsors:
L A N T E R N M E S S A G I N G
25% DISCOUNT FOR MEF MEMBERS: USE CODE MEFSMS
AT WWW.CAPACITYCONFERENCES.COM/MESSAGING-SMSGET INVOLVED
FOR MORE INFORMATION ON MEF’S FUTURE OF
MESSAGING PROGRAMME VISIT:
WWW.FUTUREOFMESSAGING.COM
JOIN THE DEBATE
WWW.MEFMINUTE.COM
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