The Network of Last Resort

Viber Nexmo

Nexmo recently announced a partnership with Viber for application to person communications over Viber’s messaging platform via Nexmo’s Chat App API.  I’ve been warning about the risk to telcos of becoming the communications network of last resort for many years. This deal heralds the turning point in A2P (Application to Person) communications that will lead to the decline in A2P SMS traffic.

Brands and businesses will choose the cheaper, IP-based, presence-enabled communications platforms (today Viber, but in time LINE, WhatsApp, Wire, Skype, and many more will be aggregated through global, easy to use APIs for the bulk of the customer / CEBP (Communication Enabled Business Process – think enterprise on-demand services) communications.

The bulk of telcos will soon see their A2P SMS traffic decline, its had a relatively short-run as a revenue highlight in the face of steep person to person SMS revenue decline. Some markets like the US will be less impacted, but the trend is there just less pronounced.

So what are telcos to do? Network = Survive and Services = Thrive. Telcos must focus on delivering new services as a matter of urgency. The Litany of Excuses shockingly remains the popular defense for inaction.

Telecom App Development is amazing, it is the future of the telecoms industry. At TADHack Global we created 90+ hacks in 24 hours over a weekend in a global event. A global ecosystem based approach is the only way to make it work. We have to work together in an open, collaborative environment. Localization is critical as every country is different, but the technology remains the same. The Telecoms Industry must change to get a share of this opportunity. An innovation Incubator is the only option, copy Dialog’s IdeaMart – presented last year at TADSummit 2014 and we’ll have important updates and the leaders of that success at TADSummit this year.

TADSummit 17-18 November is the only place where the answers to the service innovation challenge will be shared by the leading practitioners of our industry.  The telecoms world is moving ever faster, telcos can not afford to waste time on yet more weak-minded marketing jabber (digital-this & transformation-that), action is the only option, else be an ISP.

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