Secure Networks Key to A2P Monetisation
- 1. tyntec 2015 Research | Secure Networks Key to A2P Monetization1
- 2. tyntec 2015 Research | Secure Networks Key to A2P Monetization Contents 2 Introduction About the Research Key Findings and Insights A2P Growth The Growth—Security Gap Greatest Threats SMS Firewall A2P Monetization Implications and Recommendations tyntec SMS Firewall Solution About tyntec 3 4 6 7 8 9 12 14 17 11
- 3. tyntec 2015 Research | Secure Networks Key to A2P Monetization3 Introduction In tyntec’s latest whitepaper explore the key data and insights on the A2P SMS opportunities for mobile network operators (MNOs). See the startling findings on how unprepared MNOs are when it comes to securing their networks against unauthorized traffic, what they consider as the greatest security threat, and what role SMS firewalls play in A2P monetization.
- 4. tyntec 2015 Research | Secure Networks Key to A2P Monetization4 About the research With original research sponsored by tyntec and conducted by mobilesquared using an online survey of MNOs and interviews with the industry community, this 2015 report sheds light on what mobile operators must do in order to generate revenues from the growing potential in A2P messaging. All data and research in this whitepaper is by mobilesquared unless stated otherwise.
- 5. tyntec 2015 Research | Secure Networks Key to A2P Monetization Key findings and insights
- 6. tyntec 2015 Research | Secure Networks Key to A2P Monetization A2P Growth The A2P SMS market is growing fast. Based on Ovum’s forecast, A2P traffic will grow to 2.21 trillion messages per day in 2017, representing 31.3% of total messaging traffic. Juniper estimates that the A2P SMS industry will be worth USD60 billion by 2018. 6 Majority of mobile operators experiencing year-on-year A2P growth of between 6%-36%. A greater percentage of mobile operators have experienced A2P messaging traffic growth in 2015 (56%) compared to 2014 (49%).
- 7. tyntec 2015 Research | Secure Networks Key to A2P Monetization Security Gap Despite the growth of the A2P SMS market, MNOs are in protection mode. The research reveals MNOs associate the rise of A2P SMS with increased spam and illegal messaging attacks on subscribers via their networks. 7 Mobile operators slow to capitalise on A2P opportunity, which is still dominated by gray routes. Less than 25% of mobile operators have deployed next-generation firewalls necessary to identify gray routes.
- 8. tyntec 2015 Research | Secure Networks Key to A2P Monetization Greatest Threats MNOs do not have the sufficient network security tools in place to manage increased spam and as a result, are also losing out on monetization opportunities. 8 Gray routes account for two-thirds of A2P SMS traffic, meaning only one-third of A2P traffic can be monetized by mobile operators. Mobile operators consider spamming the greatest threat to their networks, followed by spoofing, and virus distribution.
- 9. tyntec 2015 Research | Secure Networks Key to A2P Monetization Key Drivers of SMS Firewalls By using a properly managed SMS firewall, MNOs can gain control over their A2P traffic, and open up their secured networks to legitimate A2P use cases, providing them with a termination fee for each message delivered to their subscribers. 9 The main driver for mobile operators considering deploying an SMS firewall is network security. The primary criteria for mobile operators selecting an SMS firewall solution is the operational simplicity and the firewall’s performance.
- 10. tyntec 2015 Research | Secure Networks Key to A2P Monetization10 Business Impact of SMS Firewalls MNOs now seeing the return of investing in SMS firewall to ensure legitimate A2P traffic is delivered to their customers. Two-thirds of mobile operators using SMS firewalls reported a huge reduction in unauthorised messaging traffic.
- 11. tyntec 2015 Research | Secure Networks Key to A2P Monetization Securing to Monetize The revenue-generating potential of A2P SMS for mobile operators is immense. MNOs have been searching for a way of getting in on the OTT communications act, but with next- generation SMS firewall solution, they can access the even greater enterprise messaging opportunity. 11 The most popular near-term monetization strategy of MNOs is domestic and international A2P SMS. MNOs need to expand their OTT monetization focus to include the broader enterprise A2P SMS opportunity. By closing gray routes and upgrading their SMS firewalls, MNOs can achieve “clean” and “legitimate” A2P messaging growth.
- 12. tyntec 2015 Research | Secure Networks Key to A2P Monetization Implications and Recommendations
- 13. tyntec 2015 Research | Secure Networks Key to A2P Monetization The Challenge: Protect and Monetize Core Assets It’s clear that the monetization potential of A2P SMS is vast, yet the majority of MNOs have been slow to act on this opportunity. By deploying next-generation firewalls, MNOs can secure their networks and generate revenues from legitimate A2P use cases. 13
- 14. tyntec 2015 Research | Secure Networks Key to A2P Monetization The Solution: tyntec’s SMS Firewall 14 tyntec’s new SMS Firewall is a content filtering solution with configurable rules that enables MNOs to control the incoming A2P traffic (SMS, portability and phone verification lookups) and protect their networks from threats such as grey routes, spam, flooding, faking, spoofing and others.
- 15. tyntec 2015 Research | Secure Networks Key to A2P Monetization Filter and identify legitimate and profitable sources of A2P SMS, providing MNOs with all information needed to negotiate commercial agreements and, in case of spam or fraud, to block the traffic. Tap into the increasing demand for clean portability information to support SMS and voice routing. Identify legitimate traffic by assigning Global Titles, enabling the operator to block illegitimate traffic as well as monetize legitimate traffic. Tap into the increasing demand for clean phone intelligence information to support authentication and customer engagement services. Identify legitimate traffic by assigning Global Titles, enabling the operator to block illegitimate traffic as well as monetize legitimate traffic. Holistic A2P Monetization A2P SMS Phone intelligence data Portability data tyntec SMS Firewall: Holistic A2P Monetization
- 16. tyntec 2015 Research | Secure Networks Key to A2P Monetization Tailored solution: Purchase the firewall infrastructure and deploy it independently, or have it managed by tyntec, or establish a revenue-sharing business model. Real-time monitoring & reporting: Threat detection and alerts for unwanted traffic. Policy management system: Powerful system for defining custom SMS filtering rules. Customized traffic analysis: Historical traffic analysis for spotting trends and threats, enables timely preventive measures and monetization planning. Seamless network integration: TDM and IP-based SIGTRAN integration, supports any network or architecture. GSMA compliance: Scanning of all traffic for threats as defined in GSMA IR.70. Easy-to-use web interface: SMS filtering policy creation made easy with web interface. 16 tyntec SMS Firewall: Key Features
- 17. tyntec 2015 Research | Secure Networks Key to A2P Monetization17 About tyntec tyntec is a telecom-web convergence company that connects the immediacy and convenience of telecom with the power of the Internet. Partnering with operators around the world, tyntec enables enterprises and Internet brands to power their applications, authentication, and mission-critical communications with universal mobile services such as SMS, voice, and phone numbers in the cloud. Founded in 2002, tyntec employs over 150 people in six offices around the globe, serving more than 500 global businesses, Internet brands and telecom operators.
- 18. tyntec 2015 Research | Secure Networks Key to A2P Monetization Our Contact Details 18 UK Offices: tyntec Ltd. 11 Hope Street Douglas IM1 1AQ Isle of Man tyntec GmbH 6 St Andrew Street London EC4A 3AE Germany Offices: tyntec GmbH Hofmannstrasse 25-27 81379 Munich tyntec GmbH Semerteichstrasse 54-56 44141 Dortmund Singapore Office: tyntec Pte Ltd 51 Goldhill Plaza #11-01/02 Singapore 308900 US Office: tyntec Inc. 555 California Street Suite 4925 San Francisco For more information, please contact our local Sales Team: Germany: +49 89 202 451 200 US: +1 415 527 0903 UK: +44 207 436 0283 Singapore: +65 6478 3020 sales@tyntec.com www.tyntec.com