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By Dino Civitarese, Vice President at e& Carrier & Wholesale for the Asia & Pacific region (APAC and Tushit Seth, Director Voice and Mobility, e& 

In recent years, the advancement of digital technologies has completely redefined how global businesses connect with their customers, breaking down a host of barriers – even time and distance.

Different messaging platforms, for example, are paving the way for better communication and customer experiences, with application-to-person (A2P) messaging continuing to emerge as a particularly valuable channel.

Facilitating more efficient, real-time communication, A2P messaging allows companies to connect seamlessly with customers, employees, and partners while protecting sensitive data and information.

 

The A2P Landscape in Asia Pacific

In Asia Pacific, Business Market Insights forecasts A2P and Communication Platform as a Service (CPaaS) to become a USD 42.75 billion market by 2028, increasing at a Compound Annual Growth Rate (CAGR) of 7% - reflecting the region's growing need for innovative customer solutions and the essential role of digital communication platforms in current business strategy.

The CPaaS market is also expected to see an 8% CAGR by 2030 as the increase in new use cases generates demand for integrated communication solutions, including SMS and other channels.

One of the key factors driving this market growth is the increased investment in digital consumer engagement. Organizations have started to realize the value of integrating SMS and other messaging channels into their apps, which not only enhances the digital customer service experience but also boosts operational efficiency.

According to e&, A2P SMS continues to be an essential channel for ensuring secure communication, especially for the transmission of One-Time Passwords (OTPs) and transaction notifications. Despite the widespread availability of many messaging platforms and communication channels, A2P SMS accounts for 60% of the total SMS business.

 

e&’s innovative approach to A2P Messaging

e& APAC, headquartered in Singapore, has recognized distinct market categories within the region, providing advanced, high-capacity technologies that meet the increasing need for uninterrupted connectivity and immediate communication.

According to Dino Civitarese, Vice President at e& APAC, “e& has been consistently expanding its presence in Asia and beyond, providing A2P Monetization as a service. This expansion strategy demonstrates the company’s commitment to showcasing the potential of A2P communications and its dedication to providing dependable and secure solutions to businesses throughout the region.”

e& APAC has anchored its growth around A2P services and Internet of Things (IoT) solutions in response to growing market demand in Asia. Since its launch, the company has experienced a remarkable increase in A2P revenue growth within the region. Voice and cloud services, introduced recently, are also on the rise, garnering major interest from OTT providers and enterprise customers.

e& APAC has also recognized a growing need for sophisticated digital infrastructure from OTT providers, hyperscalers, telecoms and content delivery networks (CDNs). As a result, there has been a significant increase in demand for e&'s data center solutions.

Additionally, Conversational AI, which has a worldwide market potential of USD 44.3 billion, can transform customer experiences by allowing businesses to engage with customers using chatbots and virtual assistants, especially in the APAC region.

Speaking recently at International Telecoms Week (ITW), e& Director for Voice & Mobility, Tushit Seth, discussed the resiliency of the A2P market, highlighting the potential for growth despite market challenges.

According to Seth, Mobile Network Operators (MNOs) and hyperscalers are cohesively working together now more than ever to reduce the impact of price elasticity, maintain higher conversion and directly deliver reliable and trusted services to customers’ end users. e& is also utilizing AI to identify abnormalities in the traffic and sender ID abuse through firewalls, allowing businesses to immediately take corrective actions and rebuild customer trust.

 

Addressing Security Challenges

Despite the clear benefits of A2P messaging for a wide range of business sectors, such as banking, logistics, healthcare, retail and other industries, there is a rising concern about security risks. The emergence of SMS phishing and Artificial Inflated traffic, for example, poses a significant threat to the integrity of this communication channel.

e& recognizes this problem and is collaborating closely with regulatory bodies such as Singapore's Infocomm Media Development Authority (IMDA). e& has also raised this matter with global platforms such as Innovative Operators (IO) and the Global Leaders Forum (GLF), where it leads various sub-committees to develop a stronger and more comprehensive framework against these activities. The primary goal of this collaboration is to restore trust in SMS and ensure its effectiveness as a channel.

e& APAC has recently closed two A2P Monetization projects, which have provided a stronger outlook for future plans to offer similar projects as a bundled value proposition for MNOs, enabling them to generate additional secure revenue streams, highlighting the increasing need for robust business models and dependable solutions in the industry.

Forming responsible partnerships with OTTs lays the foundation for a safer and more reliable future for A2P messaging. Through ongoing innovation and collaborations, A2P will continue to be a fundamental communications channel in the years to come.

Contact our team today at This email address is being protected from spambots. You need JavaScript enabled to view it. to explore how we can help you unlock the full potential of A2P messaging for your business. Together, let's build a more connected and secure digital future.