With an increasing number of data based messaging that provide people with an alternative form of P2P-communication, it seems to be the end of traditional text messaging via SMS as we know it. Or maybe not? In Turkey they are experiencing a boom in bulk SMS, and the Danish company Netfors is trying to keep up with the demand.
According to Deloitte’s report “Technology, Media and Telecommunications Predictions 2014” mobile operators will see an increase in revenue from SMS until at least the year 2017. How is that? What markets are still alive? According to the report, SMS traffic will still be dominated by P2P messaging. However, while we will be seeing a decline in P2P traffic, we will se an increase in A2P SMS traffic.
“The entire telco industry is under pressure as consumers are moving away from voice traffic over to data. Providing great data access and speed requires network investments due to the increasing demand from the end-users,” says Henrik Stenson, Director, Wholesale Denmark at Telia.
“But adapting to these changes in the market takes time, and we can’t provide high-speed data in all areas just yet. That’s why we are seeing an increase in the use of bulk SMS as an alternative to data,” he continues.
Interesting case examples of A2P SMS
More and more industries are showing great examples of how to better utilize SMS. It is currently the type of communication that has the widest coverage, making it easier for companies to reach customers or employees in areas, where a data signal is unreliable if not impossible. They simply cannot afford to lose their customers due to a weak data signal. So sending them an SMS to remind of their appointment at the hairdresser or allowing them to use it for voting on TV-shows is a good investment.
Lack of regulation creates boom in bulk SMS in Turkey
At Netfors they are seeing more and more requests from MVNOs that are looking for an SMS Gateway solution. Turkey is currently one of their emerging markets, and in the past few years they’ve seen a 300% increase in clients from that area and more projects are on the way.
“We are also getting requests from India, South Africa and Eastern Europe, as well as more exotic destinations as the Solomon Islands, where SMS is a more reliable solution for e.g. financial services. We certainly haven’t seen the end of SMS just yet,” says Anders Baekgaard.
However, one of the primary reasons why some markets are still slow on the uptake is permission. While some countries, like Turkey, allow companies to send SMS messages to customers without permission, most countries still require consent.
“In Turkey they’ve taken a completely opposite approach to SMS marketing and B2C communication. There simply is no regulation. Unlike our home market, Denmark, companies can send an SMS to whomever they want, and that can be both an opportunity and a threat,” says Anders Baekgaard. He continues: “Approaching a consumer via SMS, without their prior consent, puts great pressure on the sender, the companies. They need to make that SMS relevant and interesting, otherwise it may even hurt their brand. So perhaps this model forces the companies to be even more creative.”
The lack of regulation is without doubt the reason why we are seeing a boom in A2P in Turkey- at least until that area is regulated. Until then, it will be interesting to see how companies are using this opportunity, and not least what case examples it will bring.
Read more here: http://www.netfors.com/news?id=914
About Netfors:
Netfors develops and markets high performance products that mediate content and communication between the mobile end users and the telecom operators, service providers, integrators and aggregators, as well as content and application providers in the telecom and mobile interaction industry. They have more than 20 years of experience from the telecom industry and a special expertise in SS7, IP networks and Asterisk.
Source: http://www.webwire.com/ViewPressRel.asp?aId=192350#.VFOP7hb0MhA
