More than 3 trillion A2P SMS messages were delivered globally in 2022, averaging a staggering 8.2 billion messages daily. Despite such robust numbers, many mobile operators are yet to implement optimal pricing strategies that would maximise revenue from this burgeoning business messaging traffic.
While SMS remains a dominant force in the A2P messaging traffic landscape, its market share is projected to decline over the coming years. It underscores the urgency for mobile operators to reassess and recalibrate their pricing strategies to drive positive topline impact, ensuring the long-term sustainability of their A2P SMS business.
According to data from Juniper Research published in a White Paper with Vox Solutions, the wholesale pricing for A2P SMS remains unpredictable with disparities across key regions and the evolving A2P landscape requires dynamic pricing strategies that align with regional benchmarks and discern between national and international services. The ability to identify SMS use cases, such as OTPs, notifications, and marketing, can aid in more consistent and accurate pricing, finds the study.
“One of the prime challenges that the industry faces is the unpredictable nature of wholesale SMS pricing. This unpredictability is not just a global phenomenon but also a regional one, with stark variations in average pricing across different areas. Therefore, mobile operators need to be agile, employing strategic pricing models that resonate with the market’s needs and drive sustainable growth,” says Ehsan Ahmadi, CEO & Founder of VOX Solutions.
Adding to this, Sam Barker, VP of Telecoms Market Research from Juniper Research says: “The intricate web of A2P SMS pricing is a reflection of the diverse strategies employed by operators. But, as the market dynamics shift, it’s imperative to revisit, realign, and recalibrate pricing structures to remain competitive and relevant.”
Juniper Research emphasises the need for mobile operators to re-evaluate, innovate, and adapt in these dynamic times to ensure they capitalise on the immense potential that the A2P SMS market offers.
For detailed insights, graphs, and more information, please refer to the full report by Juniper Research: HERE