Monetization of Portability / Verification Data: Report
The Monetization of Portability and Verification in an A2P SMS World
As mobile becomes the central device in our lives, our mobile number has become the main identifier by which companies authenticate critical information and secure data, as well as target us as consumers for marketing. Furthermore, the information about the number, such as the associated mobile operator, enables efficient routing for both messaging and voice calls.
Both Mobile Phone Verification (MPV) and Mobile Number Portability (MNP) are pivotal services that now play a key role across a number of aspects of the mobile ecosystem and present a key revenue generating opportunity for mobile operators.
With original research sponsored by tyntec and conducted by mobilesquared, as a follow-up to a previous whitepaper titled “Secure Networks Key to A2P Monetisation,” this report explores not only mobile operator attitudes but also the potential of the monetization of MPV and MNP.
Opportunities With Verification and Ported Numbers
According to the survey data, 56% of operator respondents are already monetizing MNP and MPV services and 11% are planning to monetize over the next 12 months. This number is subject to increase as more mobile operators realize the revenue opportunity and form a monetization strategy.
The survey went on to find that 80% of operators believe portability and verification services will positively impact their A2P SMS business, due to the data and phone number intelligence they’re able to provide. In fact, 20% of respondents believe the mobile services will limit the level of spam delivered to their subscribers, which was identified as the biggest threat to the A2P SMS, according to operators surveyed.
Privacy & Security Requires Transparency
Despite the opportunity, respondents were split on revenue potential and concerns with subscriber privacy and security. Just below 45% of mobile operator respondents recognized the revenue potential of the two mobile services, but were equally concerned with subscriber privacy. One-third of respondents also believed MNP and MPV could potentially pose a security risk, while the same percentage of respondents also identified the services as a marketing tool.
To help address privacy and security concerns while still monetizing the services, operators require network transparency to identify legitimate use cases such as verification lookups used for two-factor authentication from the bad, illegitimate traffic. However, up to this point 66% of operators had no visibility into its own network, undermining the operator’s ability to control quality and enhance security efforts necessary for realizing the revenue potential.
All Traffic and Look Ups Must be Filtered: Enter SMS Firewalls
The key to monetizing these core assets is next generation SMS firewalls. Like all A2P SMS traffic, portability and verification traffic must be filtered to ensure it’s clean and coming from legitimate traffic sources. Not only do SMS firewalls allow operators to block grey routes, but they also improve routing efficiency, adding value to operator’s offerings to enterprises.
Of those mobile operator respondents that are currently monetizing MNP and MPV today, 33% use firewalls and more than half (60%) reported drastic reduction in unauthorized messaging traffic and an improvement in revenue. Additionally, operators using SMS firewalls are able to leverage traffic analytics to assess market demands and pinpoint activities with revenue potential.