How to realize the full potential of
SMS in an evolving landscape
Mobility in Action
Bruges, 28-30 October 2013
Market Trends
SMS revenues are declining
Rise of full MVNOs
Operators becoming a bit-pipe?
Explosion of OTTs
RCS starting
MNOs migrating bilateral
SMS to SMS Hub
OTTs looking for high quality SMS routes
slide 2 | BICS confidential | 19 November 2013
SMS Challenges
My SMS Revenues
are declining ...
OTT Messaging is
a threat ...
Increasing A2P
volumes ...
Regulation ...
How to make more money out of SMS?
slide 3 | BICS confidential | 19 November 2013
Monetisation of SMS Interworking
Remember from last year in Knokke ...
$
$
SMS
A2P
Bypass
routes
• Low prices
• Good but
unsustainable
quality
Revenues
slide 4 | BICS confidential | 19 November 2013
• No termination revenues
• Customer complaints
• No control
Secure SMS A2P Revenues
SMS
A2P
+
$
• Blocking to eliminate bypass SMS, fraud SMS, grey routes
• Charging policy to monetize SMS
slide 5 | BICS confidential | 19 November 2013
SMS (A2P) monetization:
• A realistic idea?
• Needed?
slide 6 | BICS confidential | 19 November 2013
OTT Messaging
OTT’s raising traffic
WhatsApp Highest Recorded Daily Traffic
OTT overtakes
P2P traffic
slide 8 | BICS confidential | 19 November 2013
LINE User Base
Virtual Mobile Numbers for 2-way SMS
with OTTs
Other Networks in
Your Country/Abroad
Your Network
You assign Mobile
Numbers from Your
Network to OTT and
VAS players
Voice call/SMS
OTT/VAS
Your Subscribers
Your Extended Network
OTT/VAS becomes “MVNO”
Voice call/SMS
Extend your network to OTT & VAS providers & Generate additional
voice & SMS traffic => embrace OTT as “Messaging MVNO” to your
network
slide 9 | BICS confidential | 19 November 2013
One-Way SMS from OTT
OTTs (Google, Facebook, Viber,
WhatsApp, etc.) have big volumes of
traffic
Your xxx verfication code is ...
xxx invited you to Facebook. Learn
more: http://fb.com... "stop" to stop
getting Facebook texts
• Increase SMS termination revenues
• Triggers mobile originated SMS/data sessions
slide 10 | BICS confidential | 19 November 2013
• Partnering with OTTs?
• What is your experience?
slide 11 | BICS confidential | 19 November 2013
richness, multimedia effects
SMS, OTT, RCS ...
OTT
RCS
• Multimedia
• Enriched
• “free of charge”
SMS
•
•
•
•
Everyone has it
Global interconnectivity
Easy to us
Supported on all phones
availability, interconnectivity
slide 12 | BICS confidential | 19 November 2013
Operator Assets in OTT messaging
OTT Messaging using
SMS (to reach off-line users, for
authentication, etc.)
OTT Messaging on Mobile
e.g. WhatsApp, BBM, etc.
(IP-based)
Enablers
• Pure IP based (bit-pipe), SMS, voice
• Rich call, file share, RCSe, etc.
• More advanced features
• Customer relationship
• Largest community
• Trusted partner
slide 13 | BICS confidential | 19 November 2013
The future of SMS?
• Is RCS going to overtake
SMS?
• Is the RCS model and
ecosystem strong enough to
overtake SMS?
• Quid SMS A2P? Alternatives
for A2P SMS?
slide 14 | BICS confidential | 19 November 2013
Backup Slides
Charge for all incoming SMS
non- AA.19 operator
SMS Hub
Termination fee according to
Hub contract
AA.19 operator
Your Network
Termination fee according to
AA.19 contract
• Migrate non-AA.19 operators to SMS Hub => one agreement
for charging many operators
• Termination Fee for all SMS => no free routes
slide 16 | BICS confidential | 19 November 2013
Virtual Mobile Numbers and BICS
•Assign mobile number block to BICS
•Route all incoming/outgoing calls/SMS to
BICS/other operators
•Collect interco/retail revenues for voice/SMS
•Connect to OTT & VAS
•Route all incoming calls/SMS to OTT & VAS
slide 17 | BICS confidential | 19 November 2013
BICS and OTT
OTT
SS7
• Connectivity to the world
• Enhanced QoS through E2E SS7
connectivity
SS7
• Control & termination revenues
• Get connected to the OTTs
• SMS triggers voice, SMS & data
usage
• Increased brand loyalty
BICS enables the
bridge between OTT
and Mobile Operators
slide 18 | BICS confidential | 19 November 2013
Summary
Secure your network for SMS A2P
SMS Firewall
Charge for all incoming SMS
Virtual Mobile Numbers to enable 2-way voice &
SMS exchange with OTTs => welcome OTT as
MVNO to your network
Monetise and value traffic coming from OTT
BICS as bridge between OTT and M(V)NOs
slide 19 | BICS confidential | 19 November 2013