Long Numbers for SMS Reception and Interaction
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Long Numbers for SMS Reception and Interaction

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Whitepaper by tyntec and Juniper Research on how to use long numbers for businesses

Whitepaper by tyntec and Juniper Research on how to use long numbers for businesses

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  • 1. Long Numbers for SMS Reception and InteractionTable of ContentsLong Numbers for SMS Reception and Interaction ..................................... 2 1. Introduction – the Success of SMS.......................................................................................... 2 2. The Rise of 2 Way SMS............................................................................................................ 3 Figure 1: SMS Traffic Volumes 2010 & 2016 (trillion messages) Split by P2P & P2A/A2P .................... 3 3. Delivering A2P/P2A Services via Short Codes ...................................................................... 3 3.1 The Advantages of Short Codes ........................................................................................................................... 4 i. Short Codes Provide a Billing Mechanism ........................................................................................................... 4 ii. Short Codes Provide an Immediate Call to Action.......................................................................................... 4 iii. Short Codes Enable Brand Building ..................................................................................................................... 4 3.2 The Shortcomings of Short Codes ....................................................................................................................... 4 i. Short Codes Can Be Expensive .............................................................................................................................. 4 ii. Short Code Deployment Can Be Time Consuming ........................................................................................ 4 iii. Short Codes are Enabled for National Use Only ............................................................................................ 4 iv. Public Trust in Short Code-delivered Services Has Diminished .................................................................. 5 4. The Need for Alternative Inbound Delivery Mechanisms .................................................... 5 4.1 The Alternative of Long Numbers........................................................................................................................ 5 Figure 2: Flow of Inbound Messages from Long Numbers ............................................................................ 6 4.2 The Benefits of Long Numbers ............................................................................................................................. 6 i. Long Numbers Enable Global Reach ..................................................................................................................... 6 ii. Long Numbers Have Short Integration Timeframe ......................................................................................... 6 iii. Long Numbers Enable Low Cost Targeted Messaging ................................................................................... 6 iv. Long Numbers are Associated with Standard Pricing .................................................................................... 7 v. Long Numbers Can Be Voice Enabled................................................................................................................. 7 Table 1: Benefits of Long Numbers vs Short Codes .................................................................................... 7 4.3 Use Cases for Long Numbers................................................................................................................................ 7 i. Marketing/Advertising Campaigns .......................................................................................................................... 8 ii. Voting ........................................................................................................................................................................... 8 iii. Information Services ................................................................................................................................................ 8 iv. Reminders .................................................................................................................................................................. 9 v. Social Networking ..................................................................................................................................................... 9 a. Case Study: Twitter ............................................................................................................................................... 9 vi. Dating & Chat Services ........................................................................................................................................... 9 vii. Customer Care........................................................................................................................................................ 9 viii. Process Management ........................................................................................................................................... 10 5. Enabling Long Number Services: The Role of the Mobile Interaction Service Provider . 11 5.1 Case Study: tyntec as Long Code Provider ...................................................................................................... 11 Glossary....................................................................................................................................... 13 Page 1
  • 2. Long Numbers for SMS Reception and Interaction 1Long Numbers for SMSReception andInteraction1. Introduction – the Success of SMSThe mobile phone was simply just a means of making voice calls when away from the home and office.However, the onset of P2P (Person to Person) SMS (Short Message Service) proved a definitive game-changer. From a humble beginning, SMS has now become a run-away success, although the popularity ofSMS varies by country and region. Its growth was initially strongest in Europe, and particularly in the UK,where the average monthly usage of the service in the country has increased from just 0.8 per mobilesubscriber in 1998 to 87.4 in 2008, 102.4 in 2009 and 131.0 in 2010.Recent growth in the US has been even more spectacular. Dogged by issues over interoperability betweenGSM (Global System for Mobile Communication) and CDMA (Code Division Multiple Access), adoptionof text messaging was, initially, much slower. But once hubbing providers enabled cross-networkmessaging, usage soared dramatically. According to recent figures released by CTIA – The WirelessAssociation (Cellular Telecommunications and Internet Association), a US-based industry association,more than 2.05 trillion text messages were sent in the country in the twelve months to the end ofDecember 2010, equivalent to 581.1 per mobile user per month. Just five years earlier, the correspondingmonthly usage in the US was 34.8 texts per user per annum.However, these levels of usage have been overhauled by those in a number of Asian countries, mostnotably the Philippines. Filipinos are said to be the global champions of SMS, sending an astonishing 650text messages per subscriber per month, while more than a billion SMSs are transmitted in the Philippineseach day. Excluding M2M (Machine to Machine) messaging, global SMS traffic approached 5.4 trillionmessages over the course of 2010 and is expected to rise to more than 10.7 trillion by 2016. Page 2
  • 3. Long Numbers for SMS Reception and Interaction2. The Rise of 2 Way SMSWhile initial adoption was driven by person-to-person text messaging, recent growth in SMS volumes hasbeen accentuated by the increasingly widespread utilisation of two-way messaging. This is the processwhereby a text message (e.g. marketing or from an information service) is sent to the end user, and wherea return path exists for the end user to respond to that message by sending his/her own SMS. Similarly,the end user can instigate the process (e.g. by requesting information) and have that message sent back tohim or her via SMS. This process is also known as A2P (Application to Person) and P2A (Person toApplication) messaging.At the outset, this was largely the preserve of simple, text-based information services, mass marketingcampaigns, and content access/billing mechanisms. However, use cases – and usage – proliferated, mostnotably through interactive voting and social networking. In developing markets, SMS is still the onlyubiquitous data service, and has been at the heart of many successful financial services, most notablySafaricom’s MPESA in Kenya.The net result is that there is a substantial – and fast growing – market for services facilitated by SMS.Juniper Research estimates that the proportion of A2P/P2A traffic relative to the total will increase from13% in 2010 to 22% in 2016: in terms of traffic volumes, A2P/P2A traffic is thus expected to increase from720 billion messages annually in 2010 to nearly 2.4 trillion by 2016. Figure 1: SMS Traffic Volumes 2010 & 2016 (trillion messages) Split by P2P & P2A/A2P Source: Juniper Research3. Delivering A2P/P2A Services via ShortCodesHistorically, one of the most popular mechanisms for A2P/P2A messaging has been short codes, primarily– but not exclusively – as a fast means of accessing site landing pages and of paying for mobile content.Short codes – so named because the number of digits (typically 5-6) are significantly less than those in astandard MSISDN (Mobile Subscriber Integrated Services Digital Number), meaning that they are moreeasily remembered - can be either dedicated or shared, and can be leased from SMS providers. Withshared codes, the number is shared between a number of client enterprises and the recipient enterprise isdetermined by keyword recognition. Page 3
  • 4. Long Numbers for SMS Reception and Interaction3.1 The Advantages of Short CodesAs a means of engaging with the end user – both for marketing purposes and to deliver content – shortcodes had (and have) a number of intrinsic benefits. Above and beyond the obvious advantage in that (asnoted above) they are shorter and easier to remember than standard (ISDN or MSISDN) numbers, theyprovide enterprises with a number of clearly discernable benefits.i. Short Codes Provide a Billing MechanismPerhaps the critical advantage of short codes is that – in either A2P or P2A form – they provide a billingmechanism, allowing the content or service provider to charge a premium above and beyond the standardcost of an SMS. Short codes also facilitate on-going (subscription) services billed via recurring A2P SMS.ii. Short Codes Provide an Immediate Call to ActionBy advertising short codes in print, TV or online media, brands and content/service providers offer animmediate call to action. The end user simply types in the short code and arrives at a landing page.iii. Short Codes Enable Brand BuildingThrough the use of a dedicated short code, companies have the opportunity to build an associationbetween the short code and their brand.3.2 The Shortcomings of Short CodesHowever, utilising short codes has a number of disadvantages, and these are outlined below:i. Short Codes Can Be ExpensiveIn the first instance, short codes can be expensive: in Mexico, for example, registering a short code costsaround €2,000 with subsequent code rental costs of €1,000 per month; in Nigeria, registration ofdedicated short codes costs NGN630,000 ($4,000) with a monthly cost of NGN100,000 ($634), althoughshared short code prices are markedly lower, at NGN60,000 ($380) for registration and NGN15,000($95) per month.For potential customers with smaller marketing budgets, these costs could be prohibitive, particularly forlonger-term campaigns.ii. Short Code Deployment Can Be Time ConsumingSecondly, the set-up process can be lengthy. To reach all subscribers within a given market, short codeproviders need to register the code and deploy individually with each of the MNOs (Mobile NetworkOperators) and full MVNOs (Mobile Virtual Network Operators) in that market, and as marketliberalisation has resulted in the licensing of additional players, this means that those providers now haveto negotiate 8-10 such deals. (In some markets where there are still a significant number of small-scaleregional players, such as the US, the net result can be that the short code providers simply ignore thoseplayers altogether.) Additionally, in some markets the process can be exacerbated by the need to have alocal presence in the market in question (e.g. Malaysia). Set up time is thus typically 90 days or more.iii. Short Codes are Enabled for National Use OnlyAs short codes must be activated on a per country basis, this precludes the use of a single code acrossmultiple markets, thereby adding significantly to the cost and deployment time of any service which soughtto utilise this mechanism on a pan-national basis. In addition, the vast majority of short codes defined inone country cannot be used by subscribers while being in a roaming situation. Page 4
  • 5. Long Numbers for SMS Reception and Interactioniv. Public Trust in Short Code-delivered Services Has DiminishedIt is also fair to say that because there have been a number of high-profile cases – across a number ofnational markets - where services using short codes as their billing mechanism were the subject ofregulatory actions, this resulted not only in the service providers attracting opprobrium, but that certainnegative connotations were attached to the codes themselves. Such cases frequently involved short codesbeing utilised for recurring billing, but mismanagement of some interactive voting services also led the UKpremium service regulator PhonePayPlus to ban SMS as a voting mechanism in 2009. (Individual instancesprior to the imposition of the ban had included a £50,000 fine and 12-month ban imposed byPhonePayPlus’ predecessor, ICSTIS (Independent Committee for the Supervision of Standards ofTelephone Information Services), on Atlas Interactive after consumers reported the receipt of unsolicitedjokes received via reverse-billed SMS, and a £75,000 fine imposed on Tanla over unsolicited text messagesreceived in respect of a SMS auction service where users were not “given an informed opportunity ofopting out of receiving future or current marketing information”.) While the ban was subsequently lifted,residual concerns remain.Furthermore, the popularity of short codes as a billing mechanism has also been adversely impacted by theindustry-wide transition to an app-store centric model which resulted in a marked reduction in contentpurchases from traditional platforms such as off-portal aggregators and distributors. At the same time, theperceived value of much of the content historically monetised through short codes (such as ringtones,logos, and adult content) has been diluted by the widespread availability of more sophisticated content(e.g., historical pricing of $4-5 for a ringtone has become unsustainable within a market where full tracksdownloads are available for $1 or less) and access to free content enabled by a more “open” industrymodel which facilitates low cost mobile internet browsing.4. The Need for Alternative InboundDelivery MechanismsIt is fair to say that the evolution of the mobile market has also created new opportunities for interactionacross the value chain. Firstly, the emergence of a “Web 2.0” environment during the social networkingexplosion has led to a far greater degree of interaction between the end user and online content accessedby and indeed created on/uploaded from the mobile device. Secondly, the surge in consumer smartphoneadoption – and the attendant advances in mobile analytics - has generated unprecedented interest in themobile channel amongst brands and retailers, who are recognising not only that their spend mustincreasingly migrate to digital, but that an ever greater proportion of that digital spend must be allocatedto mobile. There is increasing recognition that while the ubiquity of mobile offers the potential forsubstantial reach, the handset technologies can also enable a high and quantifiable degree of engagement,offering the potential for strong ROI (Return on Investment). Finally, there is increasing interest in mobileacross the corporate space, where enterprises are increasingly seeking to utilise SMS as a communicationschannel.Thus, while there is still substantial demand for a number of services enabled and/or monetised by shortcodes, it is fair to say that there is also scope for mechanisms which could deliver the same – if not more– results at a lower cost.4.1 The Alternative of Long NumbersLong Numbers – otherwise known as long codes or virtual mobile numbers - are standard MSISDNnumbers with around 10 digits (depending on country) which have been integrated into a SMS/MMS(Multimedia Messaging Service) solution via dedicated software and hardware. The solution enables bothMT (Mobile Terminated) and MO (Mobile Inbound/Mobile Originated) SMS.The following graphic illustrates the flow of inbound messages for virtual mobile numbers. The MOmessage is sent from the end user and delivered to the enterprise client via a long code receiver gatewayoperated by the long number provider. Page 5
  • 6. Long Numbers for SMS Reception and Interaction Figure 2: Flow of Inbound Messages from Long Numbers Source: tyntec4.2 The Benefits of Long Numbersi. Long Numbers Enable Global ReachOne of the key advantages of long numbers is that a single virtual MSISDN can reach all consumers, notjust in a single market but globally; likewise, the return path can be used even when the end user isroaming – this is a key distinction from short codes, where the end user will still receive the outboundmessage but might not be able to respond because the inbound message would not be recognised by theMNO on whose network that individual is roaming.ii. Long Numbers Have Short Integration TimeframeBecause service providers need only reach agreement with SMS provider (which in turn deals with a singleoperator, MVNO or aggregator), the integration time is typically much shorter (2-3 weeks) than is thecase with short codes.iii. Long Numbers Enable Low Cost Targeted MessagingAs with short codes, long numbers can be either shared or dedicated. Furthermore, from a costperspective, long numbers are more attractive for a number of reasons. In the first case, because codeproviders can give each client their own long number, keywords are free. Secondly, because each businesscan obtain multiple long numbers at very low cost, it allows those businesses the opportunity to targettheir customer base in a far more effective manner: rather than, say, deliver the same marketing messagevia a single, higher-cost short code, the long number alternative enables the business to focus specific textalerts (otherwise known as “blasts”) at particular target demographics, thereby increasing the potential forhigher response rates and/or lower opt-out rates. Page 6
  • 7. Long Numbers for SMS Reception and Interactioniv. Long Numbers are Associated with Standard PricingIt is arguable that, while long numbers may not be committed to memory as easily as short codes – andrequire an additional 4-5 key strokes – since they appear as standard MSISDN numbers, they carry noneof the residual stigma which may still be attached in the minds of some consumers. Indeed, from aconsumer perspective, because an SMS sent to a long number always has a standard price, it provides theend user with the reassurance – reinforced by its appearance as a standard MSISDN number – thatsending will not incur a premium charge, and in most cases that SMS can be deducted from the end userbundles.v. Long Numbers Can Be Voice EnabledFinally, because long numbers are standard phone numbers, they can be voice enabled, thereby allowingthe option of SMS and/or voice communication as a basis for convergence and unified communicationservices. This facility is particularly useful for client enterprises such as call centres, customer careproviders and IVR (Interactive Voice Response) providers in that it enables them to offer consumers asingle point of contact for inquiries, whether those customers are texting in or calling an IVR system.The following table provides a summary of the various pros and cons of short vs long numbers. Table 1: Benefits of Long Numbers vs Short Codes Long numbers Short codesAvailable from every network Available only from the network(s) they are defined inAvailable internationally Available in one country onlyAvailable for users that are roaming Very often not available while roamingAssociated with standard pricing Associated with premium pricing/ residual negative connotationsLow cost Expensive (short codes can cost up to several thousand Euro)Short set up time (2-3 weeks) Difficult to set up (require contract and availability with each operator, also a local presence in the respective country might be required) Source: Juniper ResearchArguably the greatest hurdle that long numbers face is awareness: despite the fact that such codes havebeen commercially available for nearly a decade, there were initially, if not wholly overlooked, then largelyovershadowed by short codes. Utilisation of such codes varies by country: while usage is relatively strongin the UK, in other populous European nations such as France and Germany, there are comparatively fewdeployments. However, their key advantages over short codes – primarily their low cost, low time todeployment and potential for international usage - combined with the evolution of the mobile market,makes them ripe for reappraisal and (re)discovery.4.3 Use Cases for Long NumbersWhile long numbers cannot be used as a billing mechanism, we have observed that this use case –essentially the primary driver for short codes – has been adversely impacted both by the emergence ofalternative mechanisms and (to an extent) by a reduction in the level of consumer trust.The beauty of two-way messaging is that it adds a return path for outbound communication, allowingcompanies to explore a variety of new use cases, gather feedback from their customers and built a strongand loyal followership. It is arguable that, for many other P2A/A2P applications, long numbers can offer amore affordable, less time-consuming, alternative to short codes in this regard. Page 7
  • 8. Long Numbers for SMS Reception and InteractionThis is especially interesting for, but not restricted to: Mobile content providers, Message and MSISDNresellers, WASPs (Wireless Application Service Providers), MVNEs (Mobile Virtual Network Enablers),MVNOs, MNOs, Advertising agencies, TV, radio and other media channels and social networking andmicro-blogs.The following section outlines a number of established – and emerging – use cases.i. Marketing/Advertising CampaignsAs advertising budgets have been constrained in the wake of the global recession, mobile is a one of veryfew media which has successfully bucked the trend and experienced a marked growth in adspend. Indeed,it is arguable that, from the perspective of the mobile advertising industry, the recession was indirectlyadvantageous insofar as it obliged brands to concentrate spend on engagement rather than reach, and tofocus on highly targeted campaigns with a quantifiable response rate – both areas in which mobile canscore highly against its competitors. At the same time, a mass market of consumers were discovering thatmobiles now offered attractive, engaging applications and comparatively easy access to Internet services,thanks to the success of Apple’s iPhone and the welter of consumer-oriented smartphones that hadfollowed in its wake.Given the ubiquity of SMS-enabled handsets, and end user familiarity with the service, SMS soon becamethe leading mobile delivery mechanism for mobile advertising as brands (and indeed political parties)recognise the scale of its potential reach: for example, in India, during the country’s 2009 general electioncampaign, Netcore Solutions bought an inventory of 1 billion SMS on behalf of the Bharatiya Janata Party(BJP). And yet, despite its lineage, the potential for 2-way SMS in this regard has yet to be fully explored,given that it allows feedback from, and interaction with, the target audience.More recently, however, the increased options of targeted advertising afforded to advertisers mean thatSMS can be used more effectively than was previously the case: for example, Blyk – originally an ad-supported MVNO which latterly transformed into a mobile advertising consultancy – offered advertisingtargeted at its 16-24 year old user base, which in several cases prompted response rates in excess of 50%.The levels achieved by Blyk were exceptional, but even text-based campaigns with a modicum of targetingand interactivity can achieve impressive response rates. During 2009, for example, the US ad solutionsprovider ran targeted SMS-based campaigns for Coca Cola (targeting 18-34 year olds), which resulted in a5.2% response rates; and for an unnamed cable TV operator, which generated a 4.7% response rate.Another point bearing in mind in that, even though SMS lacks the rich media content of other advertisingformats, it is ubiquitous (virtually all handsets offer texting) and with campaigns it can be more effective atgaining eyeballs than, say, email: many emails that are not sent from a recognised acquaintance of therecipient are deleted without being viewed, whereas most text messages are opened and read. However,when a campaign uses multiple Long Numbers – as a means of segmenting the target demographics – notonly is the code even more likely to be viewed (inasmuch as it comes from what is perceived to be a“standard” number), but the client is able to analyse the scale/nature of responses by individual longnumber.Thus, long numbers are an ideal mechanism for the facilitation of campaigns and promotions, and alsooffer the potential for multinational campaigns/competitions, via text to win.ii. VotingSMS-based voting has become an increasingly popular means of interacting with content from other media,most notably television. It is typically one of a number of voting channels utilised by broadcasters, includingtelephony and online, and – in combination – the scale of votes cast is now immense in some cases.iii. Information ServicesTraditional “push” SMS-based information services – in which customers subscribed to alerts providingregular news, sports, travel and weather updates – have increasingly been augmented to include “pull”services, such as price comparison sites where consumers can send a SMS with the product name to along number and receive the retail price from a selection of stores by return SMS. Page 8
  • 9. Long Numbers for SMS Reception and Interactioniv. RemindersUsers can opt-in to receive SMS reminders by sending their request to a long number. This helps themnot to forget important events like meetings, appointments or birthdays.v. Social NetworkingMany social networks have utilised status updates (and discussion posts) via SMS for several years: forexample, Facebook first introduced this facility in 2007, and subsequently expanded the service to enableusers to receive SMS notifications of updates from other users.Furthermore, in markets where fixed broadband adoption and smartphone penetration are low, there is agrowing demand for social networks which rely heavily on SMS. Perhaps the most notable of these (otherthan Twitter, see below) is SMS GupShup, a group SMS service that allows users to create mobilecommunities and broadcast messages to them. Based in India and supporting over a dozen languages(albeit in English script), the company describes itself as ‘a social messaging service to share and connectwith friends and fans’. Launched in mid-2007, the service had around 45 million users as of May 2011 andis now processing over 2 billion messages per month (up from 480 million per month a year earlier).However, while many of the extant update/posting services are enabled by short codes, the set-updemands of that option has meant that the availability of updates via SMS is limited only to those MNOswith which the social network (and its messaging enabler) has concluded agreements.a. Case Study: TwitterThe microblogging website Twitter was founded in 2006 and now has over 300 million users worldwide.To enable its SMS updates, Twitter uses a combination of short codes and long numbers. While the socialnetworking site has agreements with operators in 76 countries, only in five (Canada, Indonesia, SaudiArabia, the UK and the US) does it have agreements with all network operators. For those Twitter userswho wish to post mobile updates and who either (a) take their service from other MNOs or (b) live incountries without operator agreements (e.g. France), Twitter offers three long numbers (a UK, a German,and a Finnish number) for which users are charged either local or international message rates.vi. Dating & Chat ServicesGlobally, there were around 60 million users of mobile dating and chat services in 2010. Juniper Researchestimates that the annual revenues generated by mobile dating and chat services exceeded $1 billion forthe first time last year; these are expected to reach nearly $1.6 billion by 2015. Many of these services –particularly in developing markets – still rely heavily on SMS as a service enabler.In addition to the potential B2B (Business to Business) utilisation of long numbers in this regard, datingalso offers increased potential in the D2C (Direct to Consumer) space. Long numbers are now beingleased by those engaged in online/mobile dating who are unwilling to disclose their own home/phonenumber, allowing both voice and text communication with added security and privacy.vii. Customer CareFor an enterprise (such as a retailer, a utilities company or a mobile network operator) to sustain andenhance its relationship with its customers, it is imperative for that enterprise to keep in regular contactwith those customers.It is quite possible, for example, that the consumer may find his or her eye turned by attractive offers andplans from competing companies and/or may feel in some way dissatisfied with what he or she may feelare the constraints of their existing service subscription.Meanwhile, if that customer has signed a contract to receive a particular service (e.g. pay TV orelectricity), it is also possible that the consumer’s particular requirements (and, quite conceivably, financialstatus) may have altered since the contract was signed. Page 9
  • 10. Long Numbers for SMS Reception and InteractionFurthermore, it is imperative that the enterprise ensures that communication is not wholly one-way: theenterprise should facilitate consumer responses, requests and feedback both to enable the users to changetheir plans, and to improve their own packages on offer.Contact could be via a number of channels, including SMS, call and/or email. SMS is particularly useful as areturn (feedback) channel in this regard, providing more convenience to the customers and reducing theresources need in the contact centre.viii. Process ManagementFurthermore, SMS solutions can be integrated into enterprise processes, like supply chain managementprocesses, to improve efficiency: for example, personnel can opt to receive alerts when product stock fallsbelow a specified level or if demand exceeds inventory. Similarly, personnel in the field can use SMS todetermine whether a particular item is in stock; to answer customer queries about an item; or, to accessinformation pertaining either to a particular order or to payment track records.ix. SubscriptionOpt-in SMS enables enterprises to utilise permission-based campaigns which are both targeted andrespectful of privacy and data protection rules.Consumers can subscribe to such alerts by sending a text message to an inbound number, which isautomatically integrated into the company’s customer database. An additional subscription channel canalso be added online.By utilising opt-in and subscription services enabled via inbound SMS, enterprises can integrate the mobilechannel for marketing activities such as text-to-win campaigns, mobile advertising, mobile content delivery,downloads & sharing and mobile content/entertainment updates.x. Check InMobile Interaction allows airlines to add innovative elements into existing customer services whilereplacing paper-based tickets, as well as meeting the requirements of IATA (International Air TransportAssociation).Mobile check-in is provided via a 2D barcode SMS ticketing solution, enabling passengers to check in viatheir mobile handset. This means that a printed boarding ticket is no longer necessary and that passengersdo not have to queue at check-in counters or machines.The m-boarding pass can be provided to the passenger in various formats, such as SMS (via WAP-Push orhyperlink SMS), MMS, via a mobile application or through the mobile browser (WAP). Page 10
  • 11. Long Numbers for SMS Reception and Interaction5. Enabling Long Number Services: TheRole of the Mobile Interaction ServiceProviderWithin the A2P/P2A messaging value chain, the role of the mobile interaction service provider is toprovide a messaging platform/MSC (Mobile Switching Centre) gateway to integrate mobile channels,including messaging solutions, into business applications and thereby facilitate two-way communication inB2B, B2C (Business to Consumer) and C2C (Consumer to Consumer) deployments.Typically, the mobile interaction service provider will offer services including, but not limited to: • Outbound (MT) SMS • Inbound (MO) SMS • Two-way (MT/MO) SMSWhile the majority of mobile interaction service providers have based their strategy arounddedicated/shared short code SMS, a number – such as tyntec – have opted to offer long numbers as analternative service delivery mechanism.5.1 Case Study: tyntec as Long Number ProviderFounded in 2002, tyntec has offices in the UK (London), Germany (Munich and Dortmund) and Singapore.The company offers mobile messaging and information services to mobile network operators, enterprises,mobile service providers and Internet companies. In 2008, tyntec was the first company to offer SLAs(Service Level Agreements) for mobile messaging: these agreements guarantee delivery, reliability, uptimeand throughput. In this regard, tyntec was also the first company to create an industry standard for high-quality SMS, and to offer a 15 second SMS delivery guarantee.According to Michael Kowalzik, CEO of tyntec: “Long numbers are a cost effective, internationallyavailable and simple mobile interaction channel and they offer brands a different way of establishing high-value mobile interaction with their stakeholders. tyntec has always been aware of the advantages of longcodes and has offered them successfully in the market for several years.”tyntec states that its inbound messaging platform is secure and reliable, and can handle high volumes ofinbound SMS per second, even at peak times. Its inbound service is available worldwide, providinginternational and local numbers tailored to customer requirements; the company adds that its inboundcapacity was engineered specifically for customers requiring fast and reliable handling of incomingmessages for mission-critical applications.As part of its long number portfolio, tyntec not only offers inbound SMS but 2way communication which isthe seamless combination of its Mobile Outbound and Inbound Services which reaches more than 90% ofmobile subscribers worldwide.In addition to providing long numbers, tyntec also offers a range of products and services including: • Online SMS Portal - provides users with the ability to send SMS directly from the desktop, allowing global connectivity using tyntec’s network. • Number Lookup - a network based service allowing organisations to offer “precise and cost- effective mobile communications and authentication processes” by interrogating handset information directly from the GSM network. This allows companies to clean subscriber databases, analyse accurate data and practice anti-fraud measures. Page 11
  • 12. Long Numbers for SMS Reception and Interaction • Mobile Authentication – enables 2-factor authentication via SMS, for use in m-banking, e- commerce sites, micro-transactions, access verification to enterprise systems, mobile subscriber identity verification and the implementation of application log-ins. • Mobile Ticketing – includes the integration of check in, boarding passes, rail tickets, event tickets or discount coupons - into a variety of applications.tyntec has strategic partnerships with a range of operators in all continents. This allows the company toprovide reach into 600 networks across 190 countries. tyntec also works with a number of channelpartners, including dedicated mobile specialists and those offering a broader portfolio of services. Page 12
  • 13. Long Numbers for SMS Reception and InteractionGlossary Abbreviation Description A2P Application to Person B2B Business to Business B2C Business to Consumer BJP Bharatiya Janata Party C2C Consumer to Consumer CDMA Code Division Multiple Access CTIA Cellular Telecommunications and Internet Association (The Wireless Association) D2C Direct to Consumer GSM Global System for Mobile Communication IATA International Air Transport Association ICSTIS Independent Committee for the Supervision of Standards of Telephone Information Services ISDN Integrated Services Digital Network IVR Interactive Voice Response M2M Machine to Machine MMS Multimedia Messaging Service MNO Mobile Network Operator MO Mobile Inbound/Mobile Originated MSC Mobile Switching Centre MSISDN Mobile Subscriber Integrated Services Digital Number MT Mobile Terminated MVNE Mobile Virtual Network Enablers MVNO Mobile Virtual Network Operator NGN Nigerian Naira (ISO currency code) P2A Person to Application P2P Person to Person ROI Return on Investment SLA Service Level Agreement SMPP Short Message Peer to Peer SMS Short Message Service SMS-MO Mobile Inbound SMS SMS-MT Mobile Outbound SMS WASP Wireless Application Service Provider Page 13