1 tyntec 2015 Research | Secure Networks Key to A2P Monetization

Contents
Introduction 3

About the Research 4

Key Findings and Insights

A2P Growth 6

The Growth—Security Gap 7

Greatest Threats 8

SMS Firewall 9

A2P Monetization 11

Implications and Recommendations 12

tyntec SMS Firewall Solution 14

About tyntec 17

2 tyntec 2015 Research | Secure Networks Key to A2P Monetization

Introduction

In tyntec’s latest whitepaper explore the key data and insights on the A2P SMS
opportunities for mobile network operators (MNOs). See the startling findings on how
unprepared MNOs are when it comes to securing their networks against unauthorized
traffic, what they consider as the greatest security threat, and what role SMS firewalls play
in A2P monetization.

3 tyntec 2015 Research | Secure Networks Key to A2P Monetization

About the research

With original research sponsored by tyntec and conducted by mobilesquared using an

online survey of MNOs and interviews with the industry community, this 2015 report sheds
light on what mobile operators must do in order to generate revenues from the growing
potential in A2P messaging. All data and research in this whitepaper is by mobilesquared
unless stated otherwise.

4 tyntec 2015 Research | Secure Networks Key to A2P Monetization

Key findings and insights

tyntec 2015 Research | Secure Networks Key to A2P Monetization

A2P Growth

The A2P SMS market is growing fast. Based on Ovum’s forecast, A2P traffic will grow to
2.21 trillion messages per day in 2017, representing 31.3% of total messaging traffic.
Juniper estimates that the A2P SMS industry will be worth USD60 billion by 2018.

Majority of mobile operators

experiencing year-on-year A2P
growth of between 6%-36%.

A greater percentage of mobile

operators have experienced A2P
messaging traffic growth in 2015
(56%) compared to 2014 (49%).

6 tyntec 2015 Research | Secure Networks Key to A2P Monetization

Security Gap

Despite the growth of the A2P SMS market, MNOs are in protection mode. The research
reveals MNOs associate the rise of A2P SMS with increased spam and illegal messaging
attacks on subscribers via their networks.

Mobile operators slow to capitalise

on A2P opportunity, which is still
dominated by gray routes.

Less than 25% of mobile operators

have deployed next-generation
firewalls necessary to identify gray
routes.

7 tyntec 2015 Research | Secure Networks Key to A2P Monetization

Greatest Threats

MNOs do not have the sufficient network security tools in place to manage increased
spam and as a result, are also losing out on monetization opportunities.

Gray routes account for two-thirds of A2P SMS

traffic, meaning only one-third of A2P traffic
can be monetized by mobile operators.

Mobile operators consider spamming the

greatest threat to their networks, followed by
spoofing, and virus distribution.

8 tyntec 2015 Research | Secure Networks Key to A2P Monetization

Key Drivers of SMS Firewalls

By using a properly managed SMS firewall, MNOs can gain control over their A2P traffic,
and open up their secured networks to legitimate A2P use cases, providing them with a
termination fee for each message delivered to their subscribers.

The main driver for mobile operators

considering deploying an SMS firewall
is network security.

The primary criteria for mobile

operators selecting an SMS firewall
solution is the operational simplicity
and the firewall’s performance.

9 tyntec 2015 Research | Secure Networks Key to A2P Monetization

Business Impact of SMS Firewalls

MNOs now seeing the

return of investing in SMS
firewall to ensure legitimate
A2P traffic is delivered to
their customers.

Two-thirds of mobile
operators using SMS
firewalls reported a huge
reduction in unauthorised
messaging traffic.

10 tyntec 2015 Research | Secure Networks Key to A2P Monetization

Securing to Monetize

The revenue-generating potential of A2P SMS for mobile operators is immense. MNOs
have been searching for a way of getting in on the OTT communications act, but with next-
generation SMS firewall solution, they can access the even greater enterprise messaging
opportunity.
The most popular near-term monetization
strategy of MNOs is domestic and international
A2P SMS.

MNOs need to expand their OTT monetization

focus to include the broader enterprise A2P
SMS opportunity.

By closing gray routes and upgrading their SMS

firewalls, MNOs can achieve “clean” and
“legitimate” A2P messaging growth.
11 tyntec 2015 Research | Secure Networks Key to A2P Monetization
Implications and Recommendations

tyntec 2015 Research | Secure Networks Key to A2P Monetization

The Challenge: Protect and Monetize Core Assets

It’s clear that the monetization potential of A2P SMS is vast, yet the majority of MNOs
have been slow to act on this opportunity. By deploying next-generation firewalls, MNOs
can secure their networks and generate revenues from legitimate A2P use cases.

13 tyntec 2015 Research | Secure Networks Key to A2P Monetization

The Solution: tyntec’s SMS Firewall

tyntec’s new SMS Firewall is a content filtering solution with configurable rules that
enables MNOs to control the incoming A2P traffic (SMS, portability and phone
verification lookups) and protect their networks from threats such as grey routes, spam,
flooding, faking, spoofing and others.

14 tyntec 2015 Research | Secure Networks Key to A2P Monetization

tyntec SMS Firewall: Holistic A2P Monetization

Filter and identify legitimate and profitable

sources of A2P SMS, providing MNOs with all
information needed to negotiate commercial
agreements and, in case of spam or fraud, to
block the traffic.

A2P SMS

Tap into the increasing demand
for clean portability information
to support SMS and voice
routing. Identify legitimate traffic
Portability
by assigning Global Titles,
enabling the operator to block
illegitimate traffic as well as
monetize legitimate traffic.
Holistic A2P
Monetization Tap into the increasing demand for
clean phone intelligence information
to support authentication and
Phone customer engagement services.
data intelligence Identify legitimate traffic by
data
assigning Global Titles, enabling the
operator to block illegitimate traffic
as well as monetize legitimate traffic.

tyntec 2015 Research | Secure Networks Key to A2P Monetization

tyntec SMS Firewall: Key Features

Tailored solution: Purchase the firewall infrastructure and deploy it independently, or

have it managed by tyntec, or establish a revenue-sharing business model.

Real-time monitoring & reporting: Threat detection and alerts for unwanted traffic.

Policy management system: Powerful system for defining custom SMS filtering rules.

Customized traffic analysis: Historical traffic analysis for spotting trends and threats,
enables timely preventive measures and monetization planning.

Seamless network integration: TDM and IP-based SIGTRAN integration, supports any
network or architecture.

GSMA compliance: Scanning of all traffic for threats as defined in GSMA IR.70.

Easy-to-use web interface: SMS filtering policy creation made easy with web interface.

16 tyntec 2015 Research | Secure Networks Key to A2P Monetization

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.

17 tyntec 2015 Research | Secure Networks Key to A2P Monetization

Our Contact Details

For more information, please contact our local Sales Team:

Germany: +49 89 202 451 200
US: +1 415 527 0903
UK: +44 207 436 0283
Singapore: +65 6478 3020

sales@tyntec.com
www.tyntec.com

Germany Offices: UK Offices: Singapore Office: US Office:

tyntec GmbH tyntec Inc.
tyntec Ltd. tyntec Pte Ltd
Hofmannstrasse 25-27 555 California Street
81379 11 Hope Street 51 Goldhill Plaza
Suite 4925
Munich Douglas IM1 1AQ #11-01/02
San Francisco
Isle of Man Singapore 308900
tyntec GmbH
Semerteichstrasse 54-56 tyntec GmbH
44141
Dortmund 6 St Andrew Street
London
EC4A 3AE
18
tyntec 2015 Research | Secure Networks Key to A2P Monetization