Monetizing A2P SMS
Israel’s SMS market is quite specific in that mobile operators have traditionally been reluctant to introduce monetization services due to a lack of a regulatory framework in SMS interworking. A2P SMS prices have been extremely low, which has contributed to the widespread usage of A2P SMS services in the country, with grey routes presenting a significant problem.
Despite such a particular situation, mobile operators in Israel have been reluctant to tackle this issue: until recently, no mobile operator in Israel had an SMS firewall deployed, much less monetization solutions.
The market itself has great potential, with some 20 messages monthly per subscriber overall, and the ratio of international traffic to subscriber numbers at 1:1, which indicates a well-developed market.
Infobip sGate SMS firewall and monetization consultancy
Infobip’s sGate solution combines Machine Learning-powered SMS traffic monitoring and blocking with expert monetization consultancy to turn previously uncharged messages into a revenue generator for mobile operator partners.
The sGate filtering solution processes SMS traffic and provides insight into incoming SMS messages and their origin, and based on a set of parameters, the ML-driven system blocks uncharged, fraudulent or spam messages incoming over zero- or low-rated routes. At the same time, the monetization consultancy team works with message senders and global brands to transfer their traffic to legitimate, charged routes, generating revenue from previously unbilled messaging traffic.
Hot Mobile were looking for a one-stop-shop solution to their SMS monetization challenges, and that’s what Infobip has been able to provide. The flexible architecture also allowed Infobip to meet the stringent security requirements of Hot Mobile and the country’s regulations.
With the deployment of Infobip sGate, Hot Mobile became the first mobile operator in Israel to have an active SMS firewall, effectively leading the way for other operators in the country to follow suit.
Fully monetized international SMS traffic and increased A2P SMS revenue
The main benefit of having deployed Infobip’s sGate and monetization solutions is that Hot Mobile is now fully monetizing international SMS traffic, while before the deployment they had virtually zero revenue from A2P SMS. In addition to turning international SMS traffic into a significant revenue generator, sGate has also improved service for Hot Mobile subscribers, having reduced spam and fraudulent messaging delivered to mobile handsets.
Infobip has enabled us to create a new revenue stream from scratch with A2P SMS traffic monetization. Not only are we very happy with our relationship with Infobip in terms of commercial results, but also with the support Infobip teams provide to us in day-to-day operations, always at our disposal and very prompt to respond and engage with us. Infobip impressed with their efforts and flexibility and we can gladly recommend them as an SMS firewall and monetization provider.
Hot Mobile is a part of HOT group, which provides cable TV, broadband, landline and mobile services in Israel and is owned by Altice Group. Hot Mobile has around 1.5 million subscribers and currently ranks fourth in the Israeli mobile market.
Hot Mobile started as a Motorola unit offering iDEN push-to-talk wireless technology, which was used by military and large enterprise customers. Over the course of the years, Hot has received 3G and 4G mobile licenses, as well as 5G very recently. Hot Mobile bills itself as the country’s fastest-growing MNO.