1
The company started 1989 and has been active in the telecommuncations,primarily messaging and charging, since the turn of ...
Spending on A2P messaging is on the increase as companies in differentindustries realize the potential of text messaging f...
While P2P revenues are flattening out and even diminishing, particularly on aper-subscriber level, Enterprise messaging is...
For a single subscriber with an average of 5 incoming enterprise messagesper month (delivery notifications, appointment re...
In a network with with 1 million subscribers, this translates to revenues of €3mper year.                                 ...
Enterprise messaging also has significant value for the subscribers. As longas they get valuable, relevant information, in...
Enterprise messages can arrive over different channels to a subscriber:1) Via foreign operators that do not pay terminatio...
SIM-farms work by using legitimate SIM-cards with subscriptions that allow forhigh volumes of SMS. While often technically...
Certain enterprise messaging customers may already pay for the traffic theysend, but for a large fraction of the enterpris...
In a simple business case, based on the estimates presented in slide 6 and aconservative estimate of 50% effectiveness, an...
With a properly updated firewall, an operator can ensure that all Enterprisetraffic reaches the network through channels t...
Beyond companies that simple seek to lower their price for delivery oflegitimate messages, there are also actors that use ...
Illicit messages primarily arrive from channels where the receiving operator isnot compensated; senders of illicit message...
Threats come in many forms, some directed at subscribers directly and othersat operators involved in the delivery of text ...
After closing down uncompensated channels for incoming messages, the nextchallenge is to sell text messaging to enterprise...
For every operator, it is important to understand the potential that enterprisemessaging presents given its specific circu...
Symsoft offers the Enterprise Messaging Business Audit service to giveoperators a good understanding of their potential in...
Symsoft delivers advanced mobile solutions for messaging and online charging, all based onthe Symsoft Telecommunications P...
In Messaging, Symsoft offers a wide range of products that help operators target differentmessaging markets and provide ad...
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Presentation at Global Messaging World Congress, London 2012

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The presentation held by Janne Hazell at Global Messaging World Congress in London 2012 with speaker notes.

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Presentation at Global Messaging World Congress, London 2012

  1. 1. 1
  2. 2. The company started 1989 and has been active in the telecommuncations,primarily messaging and charging, since the turn of the centuryThe company has been profitable since its inception with the exception of oneyear, and is today one of the few profitable suppliers in the messagingindustryCEO of Symsoft is Kjell Arvidsson 2
  3. 3. Spending on A2P messaging is on the increase as companies in differentindustries realize the potential of text messaging for customer interaction.While P2P messaging sees challenges from OTT players, the unrivaled reachand instant connection that SMS offers fits very well into the needs ofenterprises. 3
  4. 4. While P2P revenues are flattening out and even diminishing, particularly on aper-subscriber level, Enterprise messaging is less affected by competitivepressure from OTT services and still attracts new actors.It is not surprising that Portio Research estimates that Enterprise messagingwill become as big as P2P messaging in terms of revenue in the next fewyears. 4
  5. 5. For a single subscriber with an average of 5 incoming enterprise messagesper month (delivery notifications, appointment reminders, marketingmessages etc) and a potential revenue of €0.05 for each message that comesin from foreign networks, operators can add €3 per subscriber and year inrevenue if they receive proper compensation for terminating messages.(5 enterprise messages per subscriber is an average number on a globalscale. We know that the figure is close to twice as high for some maturemarkets.) 5
  6. 6. In a network with with 1 million subscribers, this translates to revenues of €3mper year. 6
  7. 7. Enterprise messaging also has significant value for the subscribers. As longas they get valuable, relevant information, incoming text messages willcontinue to attract the immediate interest of subscribers. However, if we letthe channel fill up with low-quality messages, there is a risk that subscriberswill start to ignore incoming SMS. This will lead to a devaluation of SMS as achannel, which in turn will ruin the Enterprise messaging revenue opportunityand further hurt P2P revenues. In contrast to the P2P SMS business, wherecompeting technology is the main threat to revenues, Enterprise messagingrevenues are only threatened by lack of action by MNOs to protect theirnetwork. 7
  8. 8. Enterprise messages can arrive over different channels to a subscriber:1) Via foreign operators that do not pay termination fees to the operator that has the receiving subscriber (red line via external operator in the figure)2) From SIM farms, ie. specialized installations for delivering large numbers of text messages from SIM cards registered in the operator network (red line via multi-SIM terminal)3) Via foreign operators that do pay termination fees and direct connections to the operator (the green line)All would be good *if* all Enterprise messaging via the operator’s cash register (A2P Gateway/SMPP Gateway/Messaging Gateway etc.). However, in most networks today, Enterprise messaging arrive via ”gray routes” facilitated by roaming agreements that lack corresponding AA.19 agreements (case 1 above). Once those routes are closed, SIM farms may take over the delivery of Enterprise messaging traffic (case 2), still bypassing the cash register. Only a proper SMS Firewall will be able to close both gray routes and SIM farms, forcing the traffic back to the cash register (case 3). 8
  9. 9. SIM-farms work by using legitimate SIM-cards with subscriptions that allow forhigh volumes of SMS. While often technically legal, they still exploit servicepackages oriented towards consumers to send massive amounts ofEnterprise messaging traffic. The high-intensity traffic emanating from SIM-farms can also affect service quality in the area where they operate.Identifying and blocking SIM-farms require advanced Firewall functionality. 9
  10. 10. Certain enterprise messaging customers may already pay for the traffic theysend, but for a large fraction of the enterprise messaging traffic, the receivingoperator is not compensated in any way for delivering the message to thesubscriber. 10
  11. 11. In a simple business case, based on the estimates presented in slide 6 and aconservative estimate of 50% effectiveness, an operator with 1 millionsubscribers can increase their profit with €1.5M yearly if they are properlyreimbursed for enterprise messaging traffic with the introduction of an SMSfirewall. 11
  12. 12. With a properly updated firewall, an operator can ensure that all Enterprisetraffic reaches the network through channels that provide propercompensation for message delivery, while allowing for P2P traffic over anychannel; signing AA.19 agreement with every single operator would beprohibitively time-consuming for most operators and it is of interest to allowP2P messages from all networks. Therefore, it is important to implementfirewall solutions that can properly distinguish between P2P and Enterprisemessaging traffic. 12
  13. 13. Beyond companies that simple seek to lower their price for delivery oflegitimate messages, there are also actors that use SMS as a channel tocommit fraud against operators and subscribers. 13
  14. 14. Illicit messages primarily arrive from channels where the receiving operator isnot compensated; senders of illicit messages generally have a low margin,are very price conscious and therefore avoid more expensive channels thatcompensate the receiving operator. This means that messages will arrive fromexternal operators that do not pay termination fees and from SIM farms withinthe operator network. For traffic arriving via compensated channels, anoperator also has a much better ability to track down offenders. Therefore,using a firewall to close down uncompensated channels for incoming textmessages will also drastically reduce fraud. An efficient firewall will alsoenable proactive protection against threats through advanced messagefiltering. 14
  15. 15. Threats come in many forms, some directed at subscribers directly and othersat operators involved in the delivery of text messages. When choosing anSMS Firewall, it is important select a solution that can safe-guard against alarge range of threats, rather than having to rely on specialized solutions foreach category of threats. 15
  16. 16. After closing down uncompensated channels for incoming messages, the nextchallenge is to sell text messaging to enterprise customers. Managing anenterprise messaging business can be resource intensive for a singleoperator. There are literally millions of enterprise messaging customersglobally today, and enterprises sending messages in a specific country canrun into the tens or hundreds of thousands. Apart from being a majorchallenge to handle for the operator, many customers are not interested indealing with operators individually; rather, they want to be able to sendmessages to subscribers in various operators, preferably buying SMScapacity from a central actor rather than from each operator individually. Tofacilitate exchange in this market, enterprises use SMS aggregators thatenable them to send messages to practically every operator world-wide.Operators that want to reach out to enterprise messaging customers world-wide after closing down uncompensated channels for enterprise messagingstand much to gain from working together with SMS aggregators such as CLXNetworks. 16
  17. 17. For every operator, it is important to understand the potential that enterprisemessaging presents given its specific circumstances. Understanding thisrequires expertise and experience of working with enterprise messaging. 17
  18. 18. Symsoft offers the Enterprise Messaging Business Audit service to giveoperators a good understanding of their potential in the enterprise messagingbusiness. The service consists of four main steps:1) Enterprise Messaging Market Sizing: Estimate the size of the enterprise messaging market for the operator based on operator size and traffic intensity2) Network Potential Audit: Produce an overview of existing and planned interconnection agreements and roaming partner footprint that can support enterprise messaging3) Traffic Analysis: Use quantitative and qualitative traffic data to analyze current messaging flows and identify least cost routes, or gray routes, used to send messages to subscribers without compensating the operators4) Driving Revenues Into Reach: Finally, based on data from the previous three steps, recommendations are made on how best to capture enterprise messaging revenues 18
  19. 19. Symsoft delivers advanced mobile solutions for messaging and online charging, all based onthe Symsoft Telecommunications Platform. Symsoft also delivers professional services suchas product deployment, support and business consulting to help operators make the most oftheir mobile business. 19
  20. 20. In Messaging, Symsoft offers a wide range of products that help operators target differentmessaging markets and provide added value to customers, be them customers orenterprises. Beyond the platforms, Symsoft also offers services to help operators identify theirenterprise messaging potential (Symsoft Enterprise Messaging Business Audit) and tocontinuously secure the network and drive Enterprise messaging revenue to the operator(Symsoft Firewall Update Service). 20
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