ReveNet, a new player in the application services market, wants to help mobile network operators in emerging markets maximise application-to-person (A2P) communications revenue and curtail the use of ‘grey routes’.
The new platform was launched in November 2024 to help mobile network operators (MNOs) safeguard revenue opportunities linked to A2P SMS messaging.
As ReveNet explains, MNOs can leverage A2P SMS to earn from allowing access to their networks. But this model is being undermined by those in the communications ecosystem who use ‘grey routes’.
Chris Hunter, chief revenue officer at ReveNet, says grey routes are unofficial pathways used for routing A2P SMS messages to bypass traditional operator fees. They are maintained by third-party aggregators or entities seeking cost savings.
Hunter explains that grey routing poses a major challenge for MNOs, with global industry estimates pointing to billions of dollars in lost revenue from undeclared traffic. While specific figures for South Africa remain unclear, he says the issue is critical and a significant threat to MNO’s ability to reinvest in infrastructure and services.
“These routes are formed by exploiting regulatory loopholes or weaker enforcement in specific regions. Sustained by economic incentives, they offer reduced costs for bulk messaging at the expense of MNOs' revenue and network integrity.”
Grey routes also enable global tech platforms to dominate communication channels, directly competing with MNOs.
“They compete with MNOs by creating alternative ecosystems that bypass traditional revenue streams like A2P SMS. Such practices erode MNOs' profitability and disrupt the balance in the communications ecosystem," says Hunter.
Black box
According to ReveNet, firewall monetisation services often compound the challenges faced by MNOs.
Hunter explains that these services involve managing MNOs' firewalls to optimise traffic and revenue, and protect against fraudulent SMS routing.
However, providers using a "black box" model offer minimal transparency, sharing little verified data while incentivising MNOs with financial promises or inflated traffic volumes. This creates disputes when actual traffic doesn’t match agreed terms, leading to repeated contract renegotiations and undermining long-term stability.
“(And) so the MNO finds itself in a cycle of contractual breakage and re-negotiation,” says Hunter.
What ReveNet proposes is a solution that will enable MNOs to “see and control billing, pricing, and other critical elements of their value-added services through multiple channels for maximum benefits in revenues and security."
Hunter adds: “The multiple channels referenced include SMS, MMS, app-based messaging platforms, and other digital services integrated into MNOs' revenue models.”
ReveNet’s strategy, he concludes, is to leverage the growth of mobile telecommunications in emerging markets and to address key challenges faced by MNOs with focus on assuring revenues generated by A2P SMS, promoting SMS as a premium service, combating fraud, building partnership and harnessing innovation.
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