Month: June 2024

The Rise of Flash Calling: What does it mean for the MNOs?

In our digital world, almost everything is accessible with a few clicks. Whether you’re shopping online, making payments, or logging into your favorite online services, an OTP (One Time Password) requested via SMS is often the key to completing your transaction. However, the adoption of flash calls for authentication has rapidly become the preferred choice for enterprises, posing challenges for telecom operators in the industry.

What is a Flash Call?

Flash calling is a seamless authentication method that verifies identity without requiring any specific action from the end-user. When a user starts a two-factor authentication (2FA) process, a activation code is delivered by a flash call. Unlike traditional methods that require manually inputting a code or responding to a prompt, a flash call is automatically initiated to the user’s phone.

How Does Flash Calling Work?

When a phone application initiates the authentication process, it enters a state of ‘monitoring’, awaiting a call. The incoming voice call has a specific Caller Line Identification (CLI), where the last 4-6 digits serve as the required activation code. Typically, the code is acknowledged, and the call is seen as a missed call in the device, requiring no manual intervention.

This method is more user-friendly and cost-effective than other authentication methods. As the market sees widespread A2P SMS price increases, flash calls offer a budget-friendly alternative for enterprises and service providers.

Impact of Flash Calls on MNOs

While flash calls benefit businesses and users, it is a source of worry for all Mobile Network Operators (MNOs). Flash calls utilize their infrastructure but, unlike SMS or calls, do not generate revenue. This shift is significant, as Juniper Research predicts that telecom operators will lose $1.3 billion to undetected flash calls between 2023 and 2027.

 

How can MNOs Address Flash Calls?

To monetize flash call traffic, MNOs need to act swiftly. They can either:

  • Block flash calls altogether
  • Embrace them as a revenue stream

To manage flash calls in real-time, introducing voice firewalls is crucial. These not only detect flash call traffic but also prevent fraudulent activities like robocalling and grey routing of A2P SMS traffic. Firewalls safeguard the revenues and also protect the subscribers from other frauds, such as Wangiri.

Juniper Research predicts that over 90% of flash calling traffic will go undetected by network operators in 2023. However, this figure is expected to drop to 45% by 2026 due to the increasing implementation of firewall solutions.

Finding the Right Partner

Finding the right firewall solution provider is essential for MNOs looking to monetize flash calls and harness new revenue sources. This enables the identification and blocking of flash calling numbers within the network, while also safeguarding end-users from various frauds associated with them.

Gain control over the flash calls in your network and monetize them with Globe Teleservices’ next-gen firewall solution, Armour. Its AI/ML capabilities allow MNOs to monitor, analyze, identify such calls, protect their revenues and deliver superior customer experiences.

Top Challenges Faced by MNOs When Adopting A2P Messaging

The mobile network operator (MNO) landscape is rapidly evolving, driven by declining profit margins in the retail business. This has caused them to explore new revenue opportunities such as the rising use of A2P (Application-to-Person) messaging for customer communication.

This blog explores the current market situation, the rise of A2P messaging due to increasing mobile penetration and the challenges faced by operators when monetizing this opportunity.

A2P Market – The Current Trajectory

This growth is driven by the widespread penetration of mobile devices globally and the increasing demand for secure, instantaneous communication channels. According to Statista, the global A2P market is projected to reach a revenue of USD 77.76 billion by 2027.

Several key factors fuel this market growth. First, the rising number of smartphone users is transforming how businesses engage with their subscribers. A2P messaging enables businesses to send quick, direct messages, such as reminders, deals, and purchase updates, straight to consumers.

Additionally, the proliferation of wearable technology keeps end-users constantly connected to their mobile devices, frequently checking texts and calls. This connectivity has prompted businesses to actively use text messages for customer communications.

Key Trends Influencing the Enterprise A2P SMS Market
  • Rising Demand for Customer Engagement Solutions

Enterprises are leveraging A2P SMS to enhance customer engagement, using personalized and timely messages to build stronger relationships, drive brand loyalty, and improve customer satisfaction.

  • Adoption of Rich Communication Services (RCS)

RCS is an advanced messaging protocol offering interactive media, branding elements, and enhanced security. It provides richer communication channels, making it an attractive option for enterprises looking to engage customers more effectively.

As per Juniper Research, about 50% of mobile users will be RCS capable by this year.

  • Integration with Chatbots and AI Technologies

The integration of A2P SMS with chatbots and AI is gaining traction, enabling automated and intelligent responses to customer queries. This advancement significantly improves the efficiency and effectiveness of customer support services.

  • Focus on Transactional Messaging

Text messages are used for transactional messaging, such as account notifications, payment confirmations, and delivery updates. Its reliability and immediacy make it ideal for delivering critical information to customers.

  • Growth in Mobile Payments and Banking

The expansion of mobile payments and banking services has fuelled its demand in the financial sector. It is widely used for transactional messaging, including account notifications, OTP (one-time password) delivery, and fraud alerts.

Challenges Faced by MNOs While Monetizing A2P Revenues
1. Protecting the SMS Channel
  • Vulnerability to Fraud

While SMS is a trusted communication channel, it is susceptible to fraudulent activity. MNOs must implement measures to prevent revenue leakage from messages routed through gray routes and protect end customers from phishing attacks.

  • Ensuring Secure End-to-End Delivery

MNOs must safeguard their network and customers for secure end-to-end message delivery. This involves implementing strong firewalls and monitoring systems to preserve the trust established over the years.

2. Growing Threat from OTT Players
  • Competition from OTT Messaging Apps

OTT players like Meta have seized a significant share of the market. MNOs face the risk of losing A2P messaging revenues as these players offer enriched messaging experiences, allowing enterprises to reach their consumers directly.

Conclusion

A2P messaging presents a significant revenue opportunity for MNOs amid declining retail profit margins. However, successful monetization requires addressing key challenges, including securing the SMS channel, countering OTT competition, and educating internal stakeholders.

MNOs must adopt secure A2P messaging services to minimize revenue leakages and transition towards richer communication formats. With the right strategies and technologies, A2P messaging can become a cornerstone of MNOs’ revenue growth and customer engagement efforts.

As an MNO be in total control of your A2P business with secure A2P messaging services from Globe Teleservices, to minimize revenue leakages, helping you make the perfect shift towards richer communication formats.

Customer Communication Trends in the Evolving Telecom Industry

The telecom industry is undergoing a significant transformation, driven by the need to place customers at the center of its strategies. With advancements in digital innovation, telecom companies are focusing on offering experiences with human-centric interactions. This evolution is reshaping the customer experience, providing new opportunities for businesses to enhance their services and grow.

The Importance of Customer Experience in Telecom

Customer experience is critical for all, be it enterprises or operators in the telecom industry, which faces high competition and customer volatility. Technological evolution means services quickly become obsolete, leading customers to switch brands frequently. Ensuring a superior customer experience is essential to retain customers and stay competitive.

Here are the latest customer communication trends and what they mean for your future communication strategies.

  1. Digital Channels: The Backbone of B2B Communication

Customers increasingly prefer digital channels for communication, seeking quick and accurate responses without waiting on hold. Businesses using digital channels, such as voice, SMS, and chat apps, are ahead in providing efficient customer service. Rich Communications Services (RCS) is enhancing business-to-consumer (B2C) communication strategies, leading to more engaging and conversational experiences. As per Juniper’s findings, the active RCS user base is anticipated to hit 1.1 billion by 2024.

  1. Personalization: The Key to Customer Loyalty

Personalizing customer experiences is a powerful strategy for building loyalty. Telecom companies are developing customized service offerings, utilizing customer data analytics for targeted communication and mapping customer journeys to identify personalization opportunities. Tailored offers, relevant updates, and personalized marketing messages demonstrate an understanding of unique customer needs, fostering loyalty.

  1. Next-Gen Technology: Enhancing Interactions

Incorporating advanced technologies can significantly improve customer interactions and satisfaction:

  • Advanced CRM Systems:

Manage customer data and interactions effectively.

Ensure a seamless experience across various digital channels, including websites, mobile apps, and social media.

  • Data Analytics:

Understand customer behaviors and preferences to tailor communications.

  1. A2P SMS: A Pillar for Effective Communication

Despite the rise of rich media channels, SMS remains crucial in communication strategies. The worldwide A2P SMS market is expected to grow at a CAGR of 3.9%, reaching USD 96.9 billion by 2032. Rich media messaging (MMS and RCS) allows businesses to send more engaging messages, while omnichannel messaging strategies and AI enhance the effectiveness of A2P messaging campaigns by personalizing messages, segmenting audiences, and anticipating customer behavior.

  1. Conversational Channels – The Key to Engaging Interactions

Adding the right digital channels to your communication mix is essential for delivering conversational customer experiences. Voice, SMS, and chat apps are top channels for B2C communication. RCS is paving the way for future strategies, meeting the rising demand for conversational experiences. This has become crucial for enterprises planning to develop their omnichannel strategies, creating hybrid digital-physical experiences.

Conclusion

To perfect your communication strategy, assess current strategies to identify gaps and fill them effectively. Automating AI chatbots and adding flexible channels, like WhatsApp, can improve customer engagement. A cloud contact center can manage conversations across various channels, ensuring access to conversation history and efficient responses.

Customer communication in the telecom industry is evolving rapidly, driven by digital innovation and the need for human-centric interactions. By focusing on digital channels, personalization, next-gen technology, A2P SMS, and conversational channels, telecom companies can enhance customer engagement and stay competitive.

Enable innovations with Globe Teleservices to ensure your customer engagement goes from good to great. Perfect your omnichannel communication strategy today with our next-gen telecom solutions.

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