AI To Limit Operator Revenue Leakage From 5G Roaming Connections To $11m

Basingstoke, UK – 11th December 2023: A new study from Juniper Research, the foremost experts in telecommunications markets, found the average revenue leakage per 5G roaming connection will decrease from $1.72 to $1.20, as operators leverage AI-based segmentation. Revenue leakage refers to the value of services provided but not monetised.This reduction in revenue leakage will be driven by the implementation of AI-based segmentation solutions to monetise data-centric users. Specifically, this approach allows operators to reduce 5G standalone revenue leakage through the improved allocation of resources and new pricing; reflecting its higher QoS (Quality of Service). The difference is that 5G standalone networks leverage the 5G core, whilst 5G non-standalone relies on 4G infrastructure.Find out more about the new report, Global Roaming Clearing Market: 2023-2028, or download a free sample.AI Crucial to Developing Advanced Segmentation SolutionsAI-based segmentation will enable operators to better monetise emerging roaming services; using machine-learning models to detect and differentiate traffic types and segments in real-time.Research author Alex Webb remarked: “AI-based segmentation will differentiate enterprise traffic by use case; enabling premium billing of mission-critical 5G standalone connections, thus reducing revenue leakage.”Non-standalone and Standalone Networks Must Be Monetised DifferentlyThe report recommends operators implement AI segmentation tools to help reduce revenue leakage from 5G roaming on standalone networks. The higher throughput and lower latency offered by these networks needs to be reflected in operators’ pricing.By separating standalone from non-standalone roaming traffic, operators will be able to apply individual pricing strategies for each of these networks; ensuring pricing reflects QoS. Operators must utilise these tools to identify enterprise traffic suitable for use case-dedicated network slices, as this reduces revenue leakage, by optimising network resource distribution.

Operators Facing $3 Billion Revenue Loss to OTT Messaging Channels

 A new study from Juniper Research, the foremost experts in telecommunications markets, found OTT business messaging traffic will reach 375 billion messages in 2028; rising from 100 billion messages in 2023.It predicts that diminishing quality of SMS networks will drive enterprises using mobile business messaging to explore alternative channels, including OTT messaging apps. As a result, operators are expected to lose over $3 billion SMS business messaging revenue globally to OTT channels over the next five years.Pricing Key to OTT Business Messaging GrowthReduced SMS network quality is being driven by the rising prevalence of fraud, whilst operators’ SMS prices continue to grow to maintain revenue amidst slowing demand for business messaging traffic. To capitalise on this plateauing SMS market, the report urges OTT app vendors to deploy pricing strategies that attract high-spending enterprises away from established SMS channels. These strategies must separate traffic by uses; charging a premium to enterprises for mission-critical traffic, such as MFA (Multi-factor Authentication).Retail to Experience Substantial OTT Messaging GrowthThe report forecasts a large increase in OTT business messaging spend for retail; from $790 million globally in 2023 to over $2.6 billion by 2028. It urges OTT messaging vendors to integrate data from other retail channels into OTT business messaging activities. In doing so, these vendors can position their apps as a key channel for retailers’ eCommerce strategies. To maximise the potential in this space, it is imperative that OTT messaging vendors integrate payment capabilities directly into apps to maximise the channel’s value proposition.