Operators ‘losing $7.65bn a year’ in grey-market messaging

The revenue is going out through the so-called “grey market”, according to a presentation at this week’s Messaging & SMS World conference in London.
Mobile operators are losing $7.65 billion a year through revenue leakage from their messaging operations – a sum that is equivalent to $21 million a day.

Nick Lane, chief insight analyst and founder of Mobilesquared, told the conference that revenue leakage is going down, but will still be $30 billion between 2017 and 2022. He expects lost revenue to be just under $4 billion in 2022.

“If every message was white, the [messaging] market would be worth $19.3 billion in 2017, growing to $30.1 billion in 2022,” Lane told the conference, which runs until tomorrow. That’s a compound annual growth rate of 9%, he added.

Asia dominates the market, accounting for 83% of A2P traffic this year, while North America will account for just 6%. The grey market currently has a 48% share, but that will drop to 15% in 2022, he forecast.

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