Leveraging SMS to Attract Additional Data and Voice ARPU
 Global messaging marketplace is growing at a rapid pace and mobile messaging revenue is expected to reach $212 billion by 2013. Short Message Service (SMS) is still the predominant messaging service with ever increasing short message exchanges among subscribers and bringing the highest revenue to operators. In their recent report “Leveraging SMS to Attract the Low End of the Income Scale”, Pyramid Research predicts that SMS revenues will far exceed the revenues of other higher-end data services such as mobile broadband for years to come especially in the Middle East and Africa (MEA).The report also predicts that this development will go beyond the revenue opportunity coming directly from peer-to-peer SMS and that it will create new ways for operators in the highly competitive and usually low-income markets of the MEA to capitalize on subscribers’ new familiarity with SMS in order to increase not only their data ARPUs, but their voice ARPUs too.
"Our recent report covering the Middle East and Africa(MEA) Leveraging SMS to Attract the Low End of the Income Scale looks at how operators in MEA can leverage the SMS platform to boost revenue from the largest, lowest-income subscriber segments. In the region, Peer-to-peer SMS accounted for about 60% of total mobile data revenue in 2008, and we predict that it will continue to be the largest single contributor to data revenue over the forecasted period (2009-2013). The fast subscriber growth that MEA operators are witnessing — a 39% annual CAGR over the past four years and a forecast 8% annual CAGR from 2009-2013 — is posing some serious challenges related to network efficiency and declining ARPU. However, over the next four years, SMS-based services will be a powerful tool that operators can use to target the large base of low-income subscribers and generate higher revenues from both data and voice, adding up to a minimum of US$6bn in new annual revenue by 2013,” Dearbhla McHenry, Badii Kechiche, Pyramid Research. |
Key Findings of "Leveraging SMS to Attract the Low End of the Income Scale" indicate that:
- Catering to the low end of the income scale is inevitable, and so is the resulting decrease in voice ARPU. Leveraging an already existing or a new SMS platform, coupled with USSD technology, to launch a slew of attractive services makes business sense and can make the transition less drastic.
- SMS-based initiatives can have a direct, positive and quantifiable effect on operators’ KPIs such as ARPU and churn, with prepaid ARPU rising as much as 6%. These initiatives can also help with other important indicators, such as network congestion, CRM and brand identity.
- While SMS-based initiatives have competitive implications, the outcome is not necessarily a win-lose situation. Low-cost services that make sense to subscribers and respond to their needs have a potential to expand the total market as opposed to redistributing subscribers and revenue.
So are you ready to maximize your SMS revenues and profitability from this most popular mobile messaging application? Will you be able to take advantage of the largest single contributor to data revenues and address the largest, lowest-income subscriber segments in MEA? Are you ready to launch new services with SMS and USSD technologies?
Or… Are you struggling with:
- Frequent peaks of subscriber traffic volumes that your systems can not handle
- High OPEX of legacy messaging servers deployed in your network that drain your resources
- Lack of next generation network readiness
- Inflexible routing, load balancing and geographical distribution capabilities
- Revenue Assurance problems caused by non-real time charging interfaces
Don’t be alarmed! Telenity has the right messaging solutions to help you solve all of the problems above and move forward. Telenity’s Canvas® Converged Messaging Solutions enhance revenues from P2P and A2P messaging with a modular, scalable next generation IP based architecture designed for offering SMS-based services and CAPEX and OPEX savings.
Canvas Converged Messaging Solutions include:
canvas SMSC - Short Message Service Center and canvas SMSR - SMS Router
- Next generation, IP-based, high performance and distributed short messaging
- First delivery attempt, SMS routing, IP-offload, and advanced SLA management features
- One stop integration point for charging, subscriber database and third party service management solution
- Advanced messaging services such as Subscriber based screening (black) lists, Message delivery settings (SMS Diversion/Forwarding), Message Copy (Carbon Copy), Subscriber and Customer Care Web Portals, Out-of-Office SMS, etc.
canvas USSD Service Center - Interactive Mobile Services
- USSD Gateway with pre-packaged service options
- Flexible, graphical service creation environment with interactive menu service templates
canvas MMSC - Multimedia Messaging Service Center
- Network agnostic, all-IP based multimedia messaging
- Advanced media adaptation, video support and MMS routing services
- Full 3GPP standards compliance
canvas UMS - Unified Messaging System with Voice, SMS,
MMS, Email, Fax, Video Mail
- Scalable and reliable solution
- Easy integration with other Canvas voice services
- Multiple subscriber interfaces for message recording and management; WEB and IVR
- Subscriber based settings, address books, and personalized messaging
canvas MSGW - Messaging Gateway
- Single solution to manage all (text, binary, multi-media) messaging services SMSC, MMSC and USSD connectivity
- Uses standard network interface protocols with flexible routing and charging capabilities
- One-time OSS/BSS (charging, reporting) integration for all messaging applications
- Advanced SLA, congestion, and traffic control
Canvas Converged Messaging Solutions – Value Proposition
- Gracefully handle traffic peaks to assure additional/no lost revenues with a scalable and adaptive messaging server
- Modular design allowing flexible feature selection and deployment options
- Increase your ARPU by enabling more applications without system overload or service outage
- Reduce your maintenance costs with a standards based system that works on off-the-shelf-components that do not require proprietary hardware or software knowledge
- Get your network ready for next generation now with a future proof, network agnostic solution that supports both legacy and next generation networks
- “Add to” or “Replace” your existing messaging systems, with a solution that can co-exist with your current investment and grow for future
- Maximize your revenue assurance and minimize fraud with a high performance and fault tolerant real time charging capability to cover the entire messaging traffic
- “Green” solution supporting low power consumption with high performance resulting in lower OPEX
Canvas Converged Messaging Solutions Overview
Telenity’s Canvas Converged Messaging Solutions help operators offer innovative P2P and A2P messaging services, while helping them increase revenues and reduce/maintain costs.
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