GMS is the one entry point to connect to the whole world. With over 240 connections around the world, we ensure global reach for our partners, and help them communicate.
GMS is your single gateway to connect to the whole world. With over 900 connections with mobile operators, of which more than 240 are direct, we ensure global reach and help you to communicate around the world.
Having excelled in the industry for over 12 years, being the largest GSMA-compliant messaging provider in the CIS region, we have gained the expertise necessary to understand all the nuances of messaging services.
Person-to-Person (P2P) messaging has been around for a while, and most operators are experienced at handling it. But today, the telecommunications world is changing and evolving under constant pressure from consumer habits, giving a boost to new types of traffic and slowing down the growth of the old ones. If P2P SMS is one’s only focus of attention, it might seem like messaging, in general, is in decline, but that impression is skewed. While P2P SMS usage has been impacted by OTT messaging apps like Facebook Messenger, Viber, WhatsApp, the surge in other types of SMS, like A2P and P2A, is driving the overall growth of SMS messaging.
“A2P SMS market is estimated to be worth $70.32 billion by 2020”
Application-to-Person (A2P) messaging uses SMS to communicate with a user on behalf of an app. The rapid growth of social media, digital transformation happening in all industries, as well new e-commerce solutions, online banking, and applications for various services drive the steady growth of A2P messaging. The A2P SMS market is estimated to grow to $70.32 billion by 2020.
A2P can be terminated through OTT messaging. But SMS remains the most trusted and swiftly-opened communication channel, which doesn’t rely on the type of device, internet connection, or location services, just a phone and a SIM card. Today there are over 2.3 billion smartphone users worldwide, a number that OTT messaging might reach somewhere between 2019 and 2020, by which time smartphone users’ total numbers should reach approximately 2.9 billion. SMS is inexpensive, ubiquitous, universally available on devices, reliable, and quick.
As a result, SMS outperforms OTT apps for A2P messaging in all industry verticals, according to a report from the Mobile Ecosystem Forum (MEF). Notably, surveys indicate that banks and other financial institutions are interacting through SMS rather than OTT apps by a wide margin. This is due to the ubiquity of SMS, as well as the fact that SMS is scores the highest in the rankings of how much users trust different messaging platforms. The distinctive qualities of SMS make it attractive to various industry verticals, including retail, media, internet, telecoms, banking and finance, travel and hospitality. A2P messaging has the potential for synergy with another messaging type called Person-to-Application (P2A). When used together with P2A, A2P becomes even more powerful, creating a 2-way communication channel and engaging customers in a dialogue. P2A allows users to communicate with an application or directly with a business. This gives SMS another function of a trusted and universally-available communication channel between customers and businesses.
“A2P messaging is still not used to its full potential by many businesses”
Despite the new types of messages having evolved and gained their importance so quickly, many operators haven’t yet fully tapped into this source of revenue. Consequently, there’s plenty of space to grow, as A2P messaging is being adopted by more and more businesses. Industry analysts are expecting sustained growth in A2P messaging for corporate communications, and by 2020 the A2P SMS market is estimated to be worth as much as $70.32 billion.
This trend is reflected in industry forecasts expecting a compound annual market growth rate of 36%. A2P SMS enables cost-efficient marketing and promotional messaging, secure user verification, and reliably delivered alerts. In fact, even OTT messaging apps have become one of the largest users of SMS messaging - primarily for user verification, which also speaks for the level of trust in this form of communication. In view of the recent shift towards ‘conversational commerce’, the next development phase of A2P is expected to drive a fundamental industry change in enterprise-consumer communications.
“Monetization is a way to turn A2P SMS into a crucial source of revenue”
GMS is here to help operators capitalize on this trend and make sure that the booming A2P SMS traffic becomes an opportunity rather than an issue - instead of terminating the growing number of A2P messages through grey routes or the lower rate P2P channels, GMS will turn A2P SMS into a crucial source of growing revenues. Monetization is a way to reduce the unpaid traffic load on the network while increasing profits from SMS messaging.
Restricting spam and illegitimate traffic provided full visibility of the messaging volumes. Capital and operational costs reduction, combined with maximized A2P and P2P traffic monetization allowed the profits from messaging to increase by up to 2400% of incremental revenue growth.
Operational costs were reduced. International P2P traffic became fully secured and transparent. Local A2P links were taken under control to enable maximum monetization of international A2P SMS traffic.
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