As IoT triggers a lift-off in messaging volumes, carriers and messaging service providers face growing challenges for rating and routing of traffic.

A dramatic rise in A2P (application-to-person) messaging has brought a welcome boost to telcos following a historic decline in traditional P2P (person-to-person) SMS revenues.

According to recent research by the Mobile Ecosystem Forum (MEF), messaging traffic is expected to increase by more than 350% over the next 5 years. Similarly positive predictions from Transparency Market Research claim the global A2P messaging market will reach $83bn by 2025.

With the Internet of Things (IoT) driving much of the A2P growth, telcos now face new levels of complexity for rating and routing SMS traffic, which hitherto has been a relatively straightforward process. In place of a flat charging structure, the market is now seeing a move towards differential charging plans related to the growing range of SMS types, such as:

  • Simple text
  • Message from a vending machine
  • Boarding pass
  • Banking login

Accordingly, alongside accurate billing & settlement with suppliers and customers, the question of how to route traffic optimally from an LCR point of view becomes an important consideration.

SMS is optimally placed to fend off the OTT threat as the ‘format of choice’ for the IoT world, since SMS benefits from a universality and inter-operability that is not available to the OTT. Additionally, having been the format of choice for many years in scenarios (banking, ID verification) where security is paramount, and despite its lack of technical ‘glamour’, SMS has established itself as a highly trusted medium.

With the coming advent of RCS, this will also add a revolutionary ‘glamour factor’ as the humble SMS suddenly becomes feature and content-rich as a standalone format. In place of today’s SMS hyperlinking to a browers/app-based fulfilment process, the RCS will provide all necessary functionality (eg boarding pass) within the message itself.

iCONX has for many years supplemented its voice-based Interconnect Billing and Routing systems with full compliance for SMS management. Now as we enter a more complex world for messaging, iCONX has upgraded its offer to include a dedicated “Rating and Routing for Messaging” module.

The iCONX module provides full compliance with all current and future message formats (including RCS), as well as the following core functionalities:

  • Autoloading of supplier offers
  • Rating, re-rating, invoicing and settlement
  • LCR and quality-based Routing Plans
  • Full reporting suite

To discuss how iCONX can support your messaging requirements with their wholesale messaging billing tool, please contact