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Locking out sharp practices to shore up messaging revenues

Fraud and security
A set of padlocks locked in place on a big chain
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Mobile carriers are missing out on a huge revenue opportunity thanks to grey routing – a way for ‘sharp’ operators to exploit loop-holes in mobile phone networks by sidestepping the termination fee to the receiving network.

Typically messages offered to enterprises via a grey route are cheap, but lack any important KPIs like speed of delivery (if delivered at all) and security. It’s a problem that affects all players in the value-chain from consumers to enterprises, and network operators to messaging aggregators.

Next generation SMS firewalls are helping, but implementing them (operator side) is a slow process. Analyst firm Mobilesquared estimates that 48% of mobile operators globally have effectively “locked down” their network with a firewall.

However, this still means that a lot of un-monetized grey route traffic is getting through. In the short term, grey route traffic is clearly having a negative impact on potential A2P SMS revenues, to a cumulative global value of US$36.52 billion (by the end of 2022).

Download our eBook to read the full article on grey routes by Mobilesquared’s chief insights analyst Gavin Patterson, here and discover how the industry is fighting back. First published by CLX Communications.