Tuesday, July 23, 2024
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    Why MNOs need to sell CPaaS

    There is already a clear motive for mobile network operators to rethink how they sell messaging, but it forms part of a broader play for MNOs in CPaaS. Paul Skeldon takes a look at how CPaaS can help MNOs as much as it can the rest of the world.

    The world of messaging and engagement is in a state of flux. The pandemic has seen consumers worldwide rapidly embrace new, digital ways to interact with the brands they want to deal with and has made many re-evaluate messaging.

    This has seen many brands and enterprises faced with the need to rapidly embrace new contact channels beyond the phone and email, taking in not just SMS, but also WhatsApp and social media.

    To do this, they have had to buy in comms services– CPaaS, communications platforms as a service – to get up to speed with their customers in short order. 

    All this has been well-documented in the pages of telemedia magazine, but what of the MNOs, where do they fit into the CPaaS story and what can they gain from joining the party?

    Put simply, entering the CPaaS market can let MNOs leverage the enterprise market like never before. They may have phone contracts with them, maybe even broadband access, but offering the full gamut of services across all messaging channels, as a cloud based offering could dwarf what they already do.

    Accoridng to Global Messaging Services (GMS), there are three distinct wins for MNOs in offering CPaaS. 

    Increased traffic, better relations

    CPaaS solutions often increase the use of A2P SMS, for many different reasons. For example, look at fallback options, which are a huge selling point for CPaaS. If you try to send an OTT message using a CPaaS service and it isn’t delivered, then it can fall back on more reliable channels like SMS automatically. Where before an enterprise client might have tried OTT and then just written off any undelivered messages, now an A2P SMS is sent in its place – creating revenue for MNOs – and this is just one way that A2P volume is stimulated with CPaaS.

    Offering a CPaaS solution to your enterprise clients will bring you closer to them. Rather than having just a transactional relationship, where they pay for what they use in terms of network traffic, you’ll be building a long-term relationship with your clients using a subscription service business model.

    Raise customer satisfaction

    CPaaS solutions allow your enterprise clients to provide their customers with a better customer experience, and the same is true for MNOs who provide CPaaS to enterprises. Offering your customers a comprehensive messaging solution will often solve their issues, enabling them to move from using multiple different services and software to using a single login service for all their communications needs. This creates an improved customer experience for your enterprise clients too.

    The power of partnership

    The key for MNOs is to partner with the right CPaaS providers, so that they can rapidly plug in the services that they need to sell to enterprises and brands that are also in a hurry to tap into latent customer engagement on these channels.

    This may well see MNOs having to work with and embrace the services of directly competitive OTT messaging services as part of their wider CPaaS play. While this may seem counter intuitive, it does offer distinct advantages. Owning 95% market share in the A2P segment, which is experiencing annual growth of about 4%, is less attractive than accepting 80% market share in the CPaaS market which is expected to grow by 39% annually.

    There is also the need for MNOs themselves to look to use the CPaaS solutions – especially today, RCS – to sell those very same solutions to their customers in style. 

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