Monday, May 20, 2024

    Operators to lose $1.3bn to flash calling globally over next five years

    Operators could lose as much as $1.3bn to undetected flash calls cumulatively between 2023 and 2027, according to research from Juniper Research.

    Flash calling leverages voice networks to authenticate a user or transaction via an originating phone number of a missed call. The last few digits of this phone number are then automatically used for authentication, rather than a user inputting a code manually that was delivered via SMS.

    An inability to detect flash traffic will lead to diminishing SMS business revenue for operators, as enterprises use flash calling over highly lucrative SMS channels monetised by operators. Research in 2021 by Juniper Research suggested that as many as 128bn calls could be made by 2026, decimating the OTP messaging business.

    In turn, the research urges operators to adopt voice firewall solutions that are able to distinguish flash calling traffic from existing P2P voice calls in order to reduce SMS business messaging revenue losses.

    Find out more in the new report: Flash Calling: Strategies, Opportunities & Market Forecasts 2023-2027

    The report predicts that over 90% of flash traffic will be undetected by network operators in 2023. However, this figure is expected to drop to 45% by 2026; driven by the increasing implementation of detection services offered by third-party firewall providers.

    As firewalls identify more flash traffic, a choice must be made by operators: block or monetise the identified flash traffic. The report recommends that operators prioritise strategies that monetise traffic, as blocking P2P voice calls incorrectly identified as flash calling traffic will lead to frustration amongst subscribers and, most importantly, a reduction of voice channels’ value.

    Monty Mobile, for instance, talked to Telemedia News last year at GENESIS LIVE in Malaga about how to stop MNOs losing revenue to flash calls.

    Flash calling: a potential new revenue stream?

    As voice firewalls are increasingly adopted, the report predicts that operators’ losses to undetected flash calling will begin to experience year-on-year declines from 2026, as more traffic is identified and hence monetised by operators.

    It forecasts that operators’ revenue from flash calling will reach $450 million globally by 2027; surpassing operators’ losses to unidentified flash calling traffic for the first time.

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