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Operators’ core revenues have been shrinking since 2012. Voice margins are decreasing, and SMS messaging has also suffered an impact from OTT messaging apps. SMS market has survived the initial shock caused by IM applications. Moreover, SMS traffic is now growing because the use of SMS has become very popular among enterprises. A2P messaging market is booming and is estimated to be worth $70.32 billion by 2020.
In recent years OTTs have disrupted telecom industry causing a downturn in P2P SMS volumes. Operators’ core revenues have decreased, with both P2P SMS and voice traffic going down. Hence, MNOs and voice players have been searching for a new cash cow, which they found in a fruitful A2P SMS, also known as business messaging. Although popular chat applications like WhatsApp and Facebook Messenger have been threatening the messaging business, something interesting has happened. Not only that SMS survived the initial shock, but it flourished! SMS traffic is now growing because the use of SMS has become prevalent among enterprises. Moreover, OTTs have become the biggest SMS traffic generators, as millions of OTP messages (One Time Password) are sent each day. This is a phenomenal opportunity for mobile operators to leverage this new OTTs’ SMS revenue stream and compensate part of their profitability loses.