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  • Writer's pictureTomaz Tomsic

How to Increase Domestic A2P SMS Revenues by up to 30%

Domestic A2P traffic is typically sold at a fixed rate, but this simplistic approach underutilizes the potential of domestic A2P services. Unlike international A2P traffic, which is often dominated by OTP messages, domestic traffic encompasses various segments such as bulk promo, transactional, and confirmational messages.

Despite the evolving landscape of messaging options, SMS maintains a remarkable open rate of up to 98%, with 90% of SMS marketing messages being opened within 3 minutes. This underscores the enduring importance of SMS for marketing and customer services across diverse industries. Different types of SMS traffic hold varying value for both enterprises and users, creating an opportunity for value-based charging.

For instance, a strategic approach involves lower pricing for bulk promo messages and higher rates for critical messages related to new sales and client acquisitions, including confirmation messages, OTPs, and transactional messages.

Shifting from a flat-rate model to a tiered, value-based pricing approach enables MNOs to boost domestic A2P revenues by 15% to 30%. This innovation aligns pricing with specific use cases rather than just traffic volumes, fostering growth for both MNOs and their enterprise clients. Embracing such models is a strategic move that promises increased revenue and customer satisfaction.

If you are interested in learning more, we would welcome the opportunity to schedule a call with us to explore how this approach can elevate your business.

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