Five things you should know before entering A2P Messaging Business

What is A2P Messaging Platform?

A2P (Application-to-Person) messaging is a communication solution that enables businesses to send messages to individuals via SMS or MMS. This type of messaging is typically used for marketing, customer service, and operational purposes. A2P messaging solutions provide businesses with the ability to send large volumes of messages to targeted recipients, and typically offer features such as message scheduling, personalized messaging, and detailed reporting. A2P messaging can be used for a variety of use cases, such as appointment reminders, notifications, and surveys.

How A2P SMS works?

A2P SMS (Application-to-Person Short Message Service) works by allowing businesses to send text messages to a large number of individuals through a messaging gateway. This can be done through an API (Application Programming Interface) integration or a web-based platform.

Here is a general overview of how A2P SMS works:

• Businesses integrate an A2P SMS solution into their systems, such as a CRM or marketing automation platform, through an API or web-based platform.
• The business composes and sends the message to the messaging gateway.
• The messaging gateway routes the message to the appropriate mobile network operator (MNO) for delivery to the intended recipients.
• The message is delivered to the recipients' mobile phone numbers.

The A2P SMS solution provider may also provide delivery and status reports to the businesses.

A2P SMS is a cost-effective way for businesses to communicate with their customers, and it's a great way to send notifications, updates, and alerts to customers in a timely manner. It can also be used for customer engagement, for example for 2FA (Two Factor Authentication) and OTP (One Time Passwords) .

What?is A2P messaging market size ?

A2P messaging (Application-to-Person messaging) is a rapidly growing market, with the global A2P messaging market size expected to reach USD 74.81 billion by 2028. This represents a compound annual growth rate (CAGR) of 11.6% during the forecast period from 2021 to 2028. The growth of the market is driven by the increasing adoption of A2P messaging by businesses for various use cases such as customer engagement, marketing, and operational purposes.

The Asia Pacific region is expected to grow at the highest CAGR during the forecast period, due to the increasing adoption of A2P messaging by businesses in countries such as China, India, and Japan. The North America and Europe are also expected to be major markets for A2P messaging.

It is important to note that the figures and market size can change over time due to the dynamic nature of the market and the technology. Additionally, these figures may vary depending on the source and methodology used for the research.

How to start your own A2P messaging business?

Obtain a license: Depending on the country or region, becoming an SMS aggregator may require obtaining a license from the relevant telecommunications regulatory authority. This can involve submitting an application and meeting certain requirements, such as having a certain amount of financial capital.

Establish connectivity: In order to send SMS messages, you will need to establish connectivity with mobile network operators (MNOs). This can be done by leasing capacity from MNOs or by interconnecting with them through a direct or indirect route.

Develop a platform: You will need to develop a platform or system that can handle the routing, delivery, and reporting of SMS messages. This can be done through the use of an SMS gateway or by developing your own system.

Build relationships: You will need to build relationships with businesses and organizations that will use your SMS aggregation services. This can be done through sales and marketing efforts, and by offering competitive pricing and high-quality service.

Compliance with regulations: As an SMS aggregator, you will be responsible for ensuring that the messages you send comply with any relevant laws and regulations, such as those related to spam and telemarketing.

It's important to note that requirements for becoming an SMS aggregator can vary depending on the location, so it's important to research the specific regulations and requirements for your area.

Choosing the Platform

Whether to build your own A2P (Application-to-Person) messaging platform or buy an off-the-shelf solution depends on your specific business needs and resources. Here are some factors to consider:

Development costs and time: Building your own A2P platform can be a significant investment in terms of development costs and time. It can also be challenging to find the right talent to build the platform. On the other hand, buying an off-the-shelf solution can save on development costs and time.

Customization: Building your own A2P platform can give you more flexibility to customize the platform to your specific business needs. An off-the-shelf solution may not have the same level of customization options.

Scalability: Buying an off-the-shelf solution can be a good option if you need to scale your messaging quickly and easily. Many off-the-shelf solutions can handle high volume messaging and support a large number of users.

Support: An off-the-shelf solution may come with support and maintenance from the vendor, which can be beneficial if you do not have the resources to maintain the platform in-house.

Integration: If you have existing systems and platforms that need to be integrated with the A2P messaging platform, you may need to consider the integration capabilities of the off-the-shelf solution.

Ultimately, the decision to build or buy an A2P messaging platform should be based on a careful consideration of your business needs and resources. It's important to weigh the benefits and drawbacks of each option and consult with experts in the field if necessary.

To know more about A2P messaging platform, monetisation and other related queries you can reach out to one of your business associate at Power SMPP.