monetization of portability and verification

tyntec 2016 Research | Monetization of Portability / Verification

Contents

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About the Research

Introduction

Mobile Phone Verification / Mobile Number Portability

Key Findings and Insights

Mobile Operator Perceptions

Positives of MPV and MNP Traffic

MPV and MNP Traffic Strategies

MPV and MNP Traffic Revenues

Conclusion

Recommendations

About tyntec

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tyntec 2016 Research | Monetization of Portability / Verification 3

About the research

This research is a follow-up to mobilesquared's whitepaper “Secure Networks Key to A2P Monetisation: SMS firewalls, the first step in unlocking A2P revenue potential” released in October 2015. In this new study, mobilesquared delves into Mobile Number Portability and Mobile Phone Verification traffic, the second most popular monetization strategy identified by the previous research. The research involved an online survey of 25 mobile operators in October 2015, and was followed up with a second online survey of 18 mobile operators in November 2015.

http://www.tyntec.com/resources/whitepapers/secure-networks-key-to-a2p-monetization




http://www.mobilesquared.co.uk/


Introduction

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 (MNO), 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.


Mobile Phone Verification

Mobile Number Verification (MNV) is

the process by which the authenticity

of a mobile phone number is verified

against mobile network information in

real-time via the HLR (Home Location

Register).

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Mobile Number Portability

Mobile Number Portability (MNP) is

when a mobile user switches operators

and retains their mobile number, also

referred to as “porting” the number.

MNP lookups are performed by

accessing a MNP database where

available or querying the mobile

network to identify the operator that

hosts the mobile number.


Key Findings and Insights


Opportunities for Mobile Operator

Almost half of the respondents

perceived MNP and MPV as

revenue-generating.

Equally the same number of

respondents raised concerns about

security risk and subscriber privacy.

Mobile operators cannot have a

revenue generating opportunity

without considering the impact it

could have on subscribers. Just below 45% of MNOs recognised the revenue potential of MNP and MPV.

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Positives of MNP and MPV Traffic

MNP and MPV as an additional

revenue stream was the standout

opportunity for the MNOs surveyed,

selecting the opportunity ahead of

“marketing tool,” and “database

cleansing tool”.

Around one-fifth of respondents

believe MNP and MPV would limit

the level of spam delivered to their

customers 80% of the respondents viewed the impact that MNP and MPV will have on their business positively.

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MNP and MPV Traffic Strategies

66% of MNOs say they will monetize

MNP and MPV services within 12

months, with potentially more

mobile operators doing so once they

have formed a strategy.

Of the 22% of MNOs that were not

aware that these services could be

monetized, 75% of them expressed a

desire to do so.

Of the MNOs that can identify MNP

and MPV traffic, 33% use firewalls to

do so.

Almost 56% of respondents said that they already monetize Portability and Verification traffic, with a further 11% stating they will monetize the traffic in the coming 12 months.

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MNP and MPV Traffic Revenues

There is a strong correlation

between those mobile operators

with messaging visibility (56%) and

the ability to monetize MNP and

MPV traffic.

78% of mobile operators believe

Portability and Verification traffic

contributes between 1-6% of their

total revenues, with the majority of

respondents citing 1-3%

The number of respondents that can identify MNP and MPV traffic today is consistent with the 56% that also claimed to monetize it.

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Conclusion

Mobile operators are clear in that they view the overall potential of Mobile Number

Portability and Mobile Phone Verification traffic as an additional revenue stream. But they

also raised concerns with subscriber privacy, though this should be viewed as a component

to be addressed and not as a barrier to monetisation.

Over half of respondents said that they already monetize MNP and MPV traffic, with a

further 11% stating they will monetize the traffic in the coming 12 months. However, this

figure could rise further given the fact that 80% of respondents expect MNP and MPV to

have a positive impact on their business.

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Recommendations

Monetizing MNP and MPV:

The revenue potential of MNP and MPV ultimately stems from the growing

enterprise use of A2P SMS, esp. for time sensitive use cases such as two-factor

authentication.

Portability and Verification traffic also improves routing efficiency, ensuring

accurate, timely delivery to subscribers.

Mobile operators should approach Portability and Verification traffic in a new

light—as both a monetization strategy as well as an efficient routing tool.

Addressing Subscriber Privacy Issues:

All traffic including number lookups (MNP and MPV traffic) must be filtered.

Deploying an SMS Firewall addresses the issue, while separating the good

monetizable traffic from the bad. 12


About tyntec

tyntec is a telecom-web convergence company that connects the immediacy and

convenience of telecom with the power of the Internet.

Partnering with operators around the world, tyntec enables enterprises and Internet

brands to power their applications, authentication, and mission-critical communications

with universal mobile services such as SMS, voice, and phone numbers in the cloud.

Founded in 2002, tyntec employs over 150 people in six offices around the globe, serving

more than 500 global businesses, Internet brands and telecom operators.


Our Contact Details

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