A2P monetization refers to gaining benefits from untapped A2P SMS service potentials. A2P operators are up for this opportunity to make up for losing traditional revenue streams.
A2P monetization will utilize an A2P SMS service that may not be fully monetized for all operators. When fully implemented, the strategy will provide new income to offset declining revenue from voice and P2P messaging.
Why A2P operators need to monetize
A2P operators will gain a lot of benefits from monetizing their platform. They will obtain a termination fee for every SMS sent to their subscriber networks. They, too, will have chances to drive their profits from wholesale opportunities and roaming partners.
As the strategy works out well, they will have complete control over network traffic then have better business decisions. As for their subscribers, the operators will have improved chances to build a safe environment. In turn, the subscribers will undergo an improved customer journey with their services.
Three keys for the monetization
There are three critical aspects that will lead to effective A2P monetization. The first one is the SMS Firewall that mixes hardware and software for checking and blocking unpaid SMS traffic. The element is greatly needed when the traffic will infiltrate the traffic then influence the subscribers.
The second element is Tracking and Reporting which enables the operators for examining and administering SMS traffic in the networks thus making the reports. Real-time monitoring will produce types of traffic, traffic volumes, delivery routes, and applicable fees. Apply the Administration module for operating the functions of the SMS Firewall.
The last aspect is implementing Requirements and necessary steps. We can break it down into the following considerations. Number one is Infrastructure that leaves us with a fully local implementation or local and cloud-based solution combination.
Number two is the Legal factor which requires the operators to understand the local regulations on filtering practices. Make sure that the monetization meets all rules as set by the intended area administrations.
From the Business side, the operators will have to lay out a clear business plan for generating the targeted income.
More specific tasks will take place after completing the steps. At this Commercial stage, a new pricing policy is required for enlarging profits and market share. Avoid any actions that will cause a destabilized market related to A2P SMS. Set an agreement with corporations under legally binding contracts about new partnerships.
The next consideration is the Technical aspect that comes up with two options to select: cloud or local-based. And the last one is the Operational aspect: self-handling or outsourcing.