Why Keeping a Check on Grey Routes is Essential for Your SMS Portal?

The upsurging convenience of mobile messaging has given a new meaning to communication efficiency. However, it has also blown the lid off one of the costliest forms of vulnerabilities in the telecommunication industry- Grey routes.

In their latest white paper, Mobilesquared and Vox carrier forecast that between 2020- 2024, the global SMS grey routes will generate cumulative revenue leakages of a whopping $37.1 billion.

Indeed, alarming figures for telecom operators!

Meanwhile, SMS grey routes also pose equally grave threats to businesses and the end mobile users utilizing SMS traffic.

So, what are SMS grey routes stopping telecoms from achieving their full revenue potential?

SMS Gray Routes: From Loopholes to Lost Revenue

With SMS marketing campaigns gaining traction, enterprises rely on bulk SMSs to engage with their audience, send notifications and promotional offers, and boost sales and conversion.

To meet the large-scale messaging needs of businesses, mobile service providers deploy software applications called as Application-To-Person (A2P) SMS.

It refers to an SMS gateway used to send out thousands of text messages to different phone numbers across the globe. Unlike Person-To-Person(P2P) SMS messaging, A2P messages originate from web-based platforms rather than a mobile device with a SIM card.

Along the long chain of A2P traffic termination, mobile operators have approved connectivity networks with pre-determined termination charges and deal with national and international SMS aggregators.

Now, some unscrupulous third parties or SMS aggregators mask the international A2P SMS traffic as P2P traffic, which is cheaper. These fraudulent messaging routes illicitly use operators’ network infrastructure while bypassing the operator’s interconnection charges.

So, how does it impact operators?

It’s really the operators who are at a loss.

The shady grey routes dump bulk SMSs onto the operator’s network at enticingly low rates and don’t generate revenue for operators. On top of that, telecoms that are already losing significant monetization opportunities continue paying for signalling and network maintenance for their SMS portals!

Top 5 Critical Reasons Why Telecom Operators Must Block Grey Routes

Only when MNOs can prevent traffic loss to grey routes would they be able to sustain and monetize their A2P messaging services successfully.

Here’s why the need to combat grey routes is imperative for operators:

Tremendous Revenue Leakage

As discussed earlier, by sidestepping termination charges, which account for the major source of revenue for operators, grey routes offer enterprise A2P SMSs at below-market rates and deprive mobile operators of their share of profits.

Thus, the sooner operators implement a next-gen SMS firewall protection, the quicker unpaid grey traffic can be converted into white route revenue.

Poor Quality SMS Delivery

Although the insidious tactics of grey routes connect to the telecom network for a very low cost, messages are sent via multiple hops. Thus, it is likely that messages often arrive late or, worse still, never reach the receiver.

It’s a major pitfall for enterprises relying on bulk SMS for critical alerts, marketing, or customer services. Likewise, it translates into a poor customer experience, tarnishing the brand’s reputation as a trusted mobile operator.

Fraudulent Network Activity

Another significant threat grey routes ramify on MNOs is fraud in the form of SMS spoofing, smishing, faking, etc. When subscribers receive swindling messages from the operator network or incur financial losses due to grey-route scams, no wonder operators suffer irrevocable damage to the reputation they have worked hard to build.

Security Threats

Another reason MNOs need to find ways to shut grey routes is endangered data integrity and ensuing legal issues. Unauthorized routes can jeopardize the security of customers’ data.

Moreover, there are high possibilities that messages can be intercepted or altered. The text may display spliced names and hyperlinks, random characters, and other ambiguities. Sometimes, end users might not even receive the second part in the case of long messages.

Network Overloading

Grey routes cause the operator’s network to flood with unsolicited text messages creating network overload and performance degradation. Needless to say, the overhead cost of processing such illicit SMSs also increases.

How Can MNOS Monetize A2P Revenue By Blocking Grey Routes?

Eliminating grey routes remains the key measure for successful monetization for operators and a secured environment for subscribers.

Here are some of the efficient ways for MNOs to monetize A2P SMS Traffic-

1. Advanced SMS Firewall solutions to identify, segregate and block unpaid SMS traffic.
2. SMS bypass detection solution to detect and analyze all types of SMS bypass traffic in real-time.
3. Efficient probing and reporting system to obtain precise and real-time information while monitoring and administering SMS traffic into the network.

The Bottom Line

By plugging the grey routes, MNOs can prevent the drain on their revenue and unlock the true revenue potential of A2P SMS messaging services.

If you are looking to work with reliable A2P partners who can offer scalable business communication services with utmost security, transparency, and integrity, get in touch with us now.