Business Messaging. A2P and Flash Calling

Ensure Accurate A2P Routing 

Business messaging has become a hot ticket, a very hot ticket. In fact, it’s glowing white right now.

For proof, look no further than the valuations of some of the largest global messaging players. Juniper Research forecast that come 2024 there will be over two trillion A2P SMS transactions annually. For the next few years at least then, that figure is clearly heading upwards.

What is A2P Routing?

A2P (Application-to-Person) Routing is a messaging service that allows businesses to send automated text messages from applications to individuals. It enables businesses to communicate with their customers in a scalable and efficient manner. A2P routing involves the transmission of messages from applications, such as customer service platforms, marketing systems, or other business systems, to the recipients’ mobile devices. These messages can include transactional alerts, notifications, marketing campaigns, and other important communications.

SMS is inching towards its 30^th birthday and whilst over-the-top (OTT) players like WhatsApp, WeChat, Viber, Telegram and Signal are really squeezing mobile network operators’ (MNO) person-to-person (P2P) voice and SMS revenues like a hydraulic press, and with roaming revenues tanking globally due to hardly any international travel, A2P SMS is proving to be a nice little diamond in the rough right now for those MNOs who have switched on to the opportunity.

How Does A2P Routing Work?

To facilitate A2P messaging, businesses typically work with mobile network operators (MNOs) or aggregators that provide messaging gateway services. These service providers help route the messages from the business applications to the intended recipients’ mobile devices through various channels, including SMS, MMS, or even chat applications. The routing process involves the conversion of the message format from the application’s system to a format compatible with the recipients’ devices. It also ensures that the messages are delivered via the most efficient and reliable route possible, taking into account factors such as network availability, message delivery success rates, and cost optimisation.

A2P allows for personalised and real-time communication with customers, facilitating improved customer engagement and support. It can also help businesses automate their messaging processes, saving time and resources. Additionally, A2P routing enables businesses to reach a large audience simultaneously and track the delivery and engagement metrics of their messages.

Is SMS Still The Right Communication Method?

Use cases for A2P SMS may range across the areas of marketing, transactional and informative, but it’s the transactional side of things that is the real engine room. And underpinning much of that growth are messages carrying two-factor authentication (2FA) credentials.

Over the years we’ve seen many MNOs wake up to the benefits of securing and monetising their SMS channels. On the face of it this can only be positive but look a little deeper and it’s easy to see numerous examples of operators looking at new opportunities to increase their revenues.  Pricing, for example, for international SMS can be hundreds of per cent higher than domestic traffic and this is leading to many organisations to look for channels beyond SMS for 2FA purposes. Talk about killing the golden goose…

SMS might be a little long in the tooth but voice in comparison is positively ancient; it’s 145 years since Alexander Graham Bell demonstrated his ability to “talk with electricity” by transmitting a call to his assistant, Thomas Watson. The first words transmitted were “Mr Watson, come here. I want to see you”. Telephony captured the imagination of the world and took it by storm. The rest as they say – whoever ‘they’ are – is history.

Voice in the form of text-to-speech is proving to be a legitimate alternative means of delivering content such as one-time passwords (OTPs) but whilst the temptation to do so (reducing costs compared with SMS for the most part) can be strong, the customer experience is impacted, often sub-optimal. Text-to-speech takes longer to deliver the same content than a text delivery. Also, many MNOs are really starting to clamp down on aggressive usage of this and adjusting their voice commercial models to make this less attractive. But there is one more thing in the voice world which can really hurt an operator’s bottom line, now really coming to the fore – flash calling.

The Risks Flash Calling Poses To Businesses

Flash calling is a type of call that does not require a response from the recipient. It is often used as a second step in two-factor authentication processes by companies. In this process, a company dials a client’s phone number, and the client can gain access to their account without answering the call.

However, flash calling poses risks to businesses, particularly in the telecommunications industry. Telcos are concerned about the impact of flash calling on their revenues. Some describe flash calling as a way to bypass charges for Application-to-Person (A2P) SMS. Telcos consider flash calling as a menace because it does not generate revenue for traditional network operators. This loss of revenue can be a significant challenge for telcos.

Moreover, flash calling can be exploited for fraudulent activities. It can be used by scammers to deceive individuals into unwittingly returning the call and incurring high charges. Flash calls can also be used as a means of distributing spam or initiating phishing attempts. These fraudulent activities can lead to financial losses for businesses and potential harm to their customers.

To address these risks, companies and telcos should implement adequate security measures and fraud detection systems. This may include analysing call patterns, monitoring for suspicious activity, and educating customers about the risks and precautions associated with flash calling. Collaboration between telecommunications companies and regulatory bodies is also crucial in assessing and mitigating the risks associated with flash calling.

Overall, while flash calling provides convenience for certain authentication processes, businesses and telcos need to be aware of the risks involved and take proactive steps to protect themselves and their customers.

How To Be Protected From Flash Calling

Flash calling can seriously hurt MNO A2P revenues as it uses a missed call (with no answer) to the recipient’s handset to verify their number. A phone call is placed with the authentication code embedded in the caller ID sent to the user’s phone. There is no need for the user to to answer the call so there is no cost associated with the call. Their revenues risk quite literally disappearing in front of their eyes within a flash plus this can all open up a host of security issues too. None of this is exactly stellar news for operators I’m sure you’ll agree.

Businesses can take several measures to protect themselves from potential risks associated with flash calls:

1. Implement robust authentication methods: Businesses should adopt strong authentication methods that go beyond flash calls to verify the identity of their customers. This may include multi-factor authentication, such as combining something the customer knows (e.g., password) and something they have (e.g., their mobile data).
2. Educate customers: It is essential to raise awareness among customers about the risks of flash calls and how to identify and respond to fraudulent attempts. Businesses can provide information on their website, through email communications, or in-app notifications, cautioning customers about potential scams and advising them not to return calls or provide personal information over the phone.
3. Implement fraud detection systems: Businesses can employ fraud detection systems that analyse call patterns and behaviours to identify and flag suspicious activity associated with flash calls. Advanced algorithms can help detect anomalies in call traffic, such as sudden spikes or frequent patterns indicating fraudulent activities. Prompt action can be taken to mitigate the risks.

By implementing these proactive measures, businesses can enhance their defences against flash call-related risks and protect themselves and their customers from potential fraudulent activities. Collaboration with industry peers, regulatory bodies, and telecommunications operators is crucial to collectively address and mitigate the risks associated with flash calls.

Speak to us today about how TMT Analysis can help your business or try our A2P routing API.

by Mark Page, VP of Sales and Purchasing at TMT ID