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Long Numbers for SMS Reception and Interaction




Table of Contents
Long Numbers for SMS Reception and Interaction ..................................... 2
 1. Introduction – the Success of SMS.......................................................................................... 2
 2. The Rise of 2 Way SMS............................................................................................................ 3
          Figure 1: SMS Traffic Volumes 2010 & 2016 (trillion messages) Split by P2P & P2A/A2P .................... 3
 3. Delivering A2P/P2A Services via Short Codes ...................................................................... 3
   3.1 The Advantages of Short Codes ........................................................................................................................... 4
     i. Short Codes Provide a Billing Mechanism ........................................................................................................... 4
     ii. Short Codes Provide an Immediate Call to Action.......................................................................................... 4
     iii. Short Codes Enable Brand Building ..................................................................................................................... 4
   3.2 The Shortcomings of Short Codes ....................................................................................................................... 4
     i. Short Codes Can Be Expensive .............................................................................................................................. 4
     ii. Short Code Deployment Can Be Time Consuming ........................................................................................ 4
     iii. Short Codes are Enabled for National Use Only ............................................................................................ 4
     iv. Public Trust in Short Code-delivered Services Has Diminished .................................................................. 5
 4. The Need for Alternative Inbound Delivery Mechanisms .................................................... 5
   4.1 The Alternative of Long Numbers........................................................................................................................ 5
          Figure 2: Flow of Inbound Messages from Long Numbers ............................................................................ 6
   4.2 The Benefits of Long Numbers ............................................................................................................................. 6
     i. Long Numbers Enable Global Reach ..................................................................................................................... 6
     ii. Long Numbers Have Short Integration Timeframe ......................................................................................... 6
     iii. Long Numbers Enable Low Cost Targeted Messaging ................................................................................... 6
     iv. Long Numbers are Associated with Standard Pricing .................................................................................... 7
     v. Long Numbers Can Be Voice Enabled................................................................................................................. 7
            Table 1: Benefits of Long Numbers vs Short Codes .................................................................................... 7
   4.3 Use Cases for Long Numbers................................................................................................................................ 7
     i. Marketing/Advertising Campaigns .......................................................................................................................... 8
     ii. Voting ........................................................................................................................................................................... 8
     iii. Information Services ................................................................................................................................................ 8
     iv. Reminders .................................................................................................................................................................. 9
     v. Social Networking ..................................................................................................................................................... 9
       a. Case Study: Twitter ............................................................................................................................................... 9
     vi. Dating & Chat Services ........................................................................................................................................... 9
     vii. Customer Care........................................................................................................................................................ 9
     viii. Process Management ........................................................................................................................................... 10
 5. Enabling Long Number Services: The Role of the Mobile Interaction Service Provider . 11
   5.1 Case Study: tyntec as Long Code Provider ...................................................................................................... 11



 Glossary....................................................................................................................................... 13

                                                                                      Page 1
Long Numbers for SMS Reception and Interaction




                                                                                                 1
Long Numbers for SMS
Reception and
Interaction
1. Introduction – the Success of SMS
The mobile phone was simply just a means of making voice calls when away from the home and office.
However, the onset of P2P (Person to Person) SMS (Short Message Service) proved a definitive game-
changer. From a humble beginning, SMS has now become a run-away success, although the popularity of
SMS varies by country and region. Its growth was initially strongest in Europe, and particularly in the UK,
where the average monthly usage of the service in the country has increased from just 0.8 per mobile
subscriber in 1998 to 87.4 in 2008, 102.4 in 2009 and 131.0 in 2010.

Recent growth in the US has been even more spectacular. Dogged by issues over interoperability between
GSM (Global System for Mobile Communication) and CDMA (Code Division Multiple Access), adoption
of text messaging was, initially, much slower. But once hubbing providers enabled cross-network
messaging, usage soared dramatically. According to recent figures released by CTIA – The Wireless
Association (Cellular Telecommunications and Internet Association), a US-based industry association,
more than 2.05 trillion text messages were sent in the country in the twelve months to the end of
December 2010, equivalent to 581.1 per mobile user per month. Just five years earlier, the corresponding
monthly usage in the US was 34.8 texts per user per annum.

However, these levels of usage have been overhauled by those in a number of Asian countries, most
notably the Philippines. Filipinos are said to be the global champions of SMS, sending an astonishing 650
text messages per subscriber per month, while more than a billion SMSs are transmitted in the Philippines
each day. Excluding M2M (Machine to Machine) messaging, global SMS traffic approached 5.4 trillion
messages over the course of 2010 and is expected to rise to more than 10.7 trillion by 2016.




                                                  Page 2
Long Numbers for SMS Reception and Interaction


2. The Rise of 2 Way SMS
While initial adoption was driven by person-to-person text messaging, recent growth in SMS volumes has
been accentuated by the increasingly widespread utilisation of two-way messaging. This is the process
whereby a text message (e.g. marketing or from an information service) is sent to the end user, and where
a return path exists for the end user to respond to that message by sending his/her own SMS. Similarly,
the end user can instigate the process (e.g. by requesting information) and have that message sent back to
him or her via SMS. This process is also known as A2P (Application to Person) and P2A (Person to
Application) messaging.

At the outset, this was largely the preserve of simple, text-based information services, mass marketing
campaigns, and content access/billing mechanisms. However, use cases – and usage – proliferated, most
notably through interactive voting and social networking. In developing markets, SMS is still the only
ubiquitous data service, and has been at the heart of many successful financial services, most notably
Safaricom’s MPESA in Kenya.

The net result is that there is a substantial – and fast growing – market for services facilitated by SMS.
Juniper Research estimates that the proportion of A2P/P2A traffic relative to the total will increase from
13% in 2010 to 22% in 2016: in terms of traffic volumes, A2P/P2A traffic is thus expected to increase from
720 billion messages annually in 2010 to nearly 2.4 trillion by 2016.

   Figure 1: SMS Traffic Volumes 2010 & 2016 (trillion messages) Split by P2P & P2A/A2P




                                          Source: Juniper Research




3. Delivering A2P/P2A Services via Short
Codes
Historically, one of the most popular mechanisms for A2P/P2A messaging has been short codes, primarily
– but not exclusively – as a fast means of accessing site landing pages and of paying for mobile content.
Short codes – so named because the number of digits (typically 5-6) are significantly less than those in a
standard MSISDN (Mobile Subscriber Integrated Services Digital Number), meaning that they are more
easily remembered - can be either dedicated or shared, and can be leased from SMS providers. With
shared codes, the number is shared between a number of client enterprises and the recipient enterprise is
determined by keyword recognition.




                                                  Page 3
Long Numbers for SMS Reception and Interaction


3.1 The Advantages of Short Codes

As a means of engaging with the end user – both for marketing purposes and to deliver content – short
codes had (and have) a number of intrinsic benefits. Above and beyond the obvious advantage in that (as
noted above) they are shorter and easier to remember than standard (ISDN or MSISDN) numbers, they
provide enterprises with a number of clearly discernable benefits.

i. Short Codes Provide a Billing Mechanism

Perhaps the critical advantage of short codes is that – in either A2P or P2A form – they provide a billing
mechanism, allowing the content or service provider to charge a premium above and beyond the standard
cost of an SMS. Short codes also facilitate on-going (subscription) services billed via recurring A2P SMS.

ii. Short Codes Provide an Immediate Call to Action

By advertising short codes in print, TV or online media, brands and content/service providers offer an
immediate call to action. The end user simply types in the short code and arrives at a landing page.

iii. Short Codes Enable Brand Building

Through the use of a dedicated short code, companies have the opportunity to build an association
between the short code and their brand.


3.2 The Shortcomings of Short Codes

However, utilising short codes has a number of disadvantages, and these are outlined below:

i. Short Codes Can Be Expensive

In the first instance, short codes can be expensive: in Mexico, for example, registering a short code costs
around €2,000 with subsequent code rental costs of €1,000 per month; in Nigeria, registration of
dedicated short codes costs NGN630,000 ($4,000) with a monthly cost of NGN100,000 ($634), although
shared short code prices are markedly lower, at NGN60,000 ($380) for registration and NGN15,000
($95) per month.

For potential customers with smaller marketing budgets, these costs could be prohibitive, particularly for
longer-term campaigns.

ii. Short Code Deployment Can Be Time Consuming

Secondly, the set-up process can be lengthy. To reach all subscribers within a given market, short code
providers need to register the code and deploy individually with each of the MNOs (Mobile Network
Operators) and full MVNOs (Mobile Virtual Network Operators) in that market, and as market
liberalisation has resulted in the licensing of additional players, this means that those providers now have
to negotiate 8-10 such deals. (In some markets where there are still a significant number of small-scale
regional players, such as the US, the net result can be that the short code providers simply ignore those
players altogether.) Additionally, in some markets the process can be exacerbated by the need to have a
local presence in the market in question (e.g. Malaysia). Set up time is thus typically 90 days or more.

iii. Short Codes are Enabled for National Use Only

As short codes must be activated on a per country basis, this precludes the use of a single code across
multiple markets, thereby adding significantly to the cost and deployment time of any service which sought
to utilise this mechanism on a pan-national basis. In addition, the vast majority of short codes defined in
one country cannot be used by subscribers while being in a roaming situation.



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Long Numbers for SMS Reception and Interaction

iv. Public Trust in Short Code-delivered Services Has Diminished

It is also fair to say that because there have been a number of high-profile cases – across a number of
national markets - where services using short codes as their billing mechanism were the subject of
regulatory actions, this resulted not only in the service providers attracting opprobrium, but that certain
negative connotations were attached to the codes themselves. Such cases frequently involved short codes
being utilised for recurring billing, but mismanagement of some interactive voting services also led the UK
premium service regulator PhonePayPlus to ban SMS as a voting mechanism in 2009. (Individual instances
prior to the imposition of the ban had included a £50,000 fine and 12-month ban imposed by
PhonePayPlus’ predecessor, ICSTIS (Independent Committee for the Supervision of Standards of
Telephone Information Services), on Atlas Interactive after consumers reported the receipt of unsolicited
jokes received via reverse-billed SMS, and a £75,000 fine imposed on Tanla over unsolicited text messages
received in respect of a SMS auction service where users were not “given an informed opportunity of
opting out of receiving future or current marketing information”.) While the ban was subsequently lifted,
residual concerns remain.

Furthermore, the popularity of short codes as a billing mechanism has also been adversely impacted by the
industry-wide transition to an app-store centric model which resulted in a marked reduction in content
purchases from traditional platforms such as off-portal aggregators and distributors. At the same time, the
perceived value of much of the content historically monetised through short codes (such as ringtones,
logos, and adult content) has been diluted by the widespread availability of more sophisticated content
(e.g., historical pricing of $4-5 for a ringtone has become unsustainable within a market where full tracks
downloads are available for $1 or less) and access to free content enabled by a more “open” industry
model which facilitates low cost mobile internet browsing.



4. The Need for Alternative Inbound
Delivery Mechanisms
It is fair to say that the evolution of the mobile market has also created new opportunities for interaction
across the value chain. Firstly, the emergence of a “Web 2.0” environment during the social networking
explosion has led to a far greater degree of interaction between the end user and online content accessed
by and indeed created on/uploaded from the mobile device. Secondly, the surge in consumer smartphone
adoption – and the attendant advances in mobile analytics - has generated unprecedented interest in the
mobile channel amongst brands and retailers, who are recognising not only that their spend must
increasingly migrate to digital, but that an ever greater proportion of that digital spend must be allocated
to mobile. There is increasing recognition that while the ubiquity of mobile offers the potential for
substantial reach, the handset technologies can also enable a high and quantifiable degree of engagement,
offering the potential for strong ROI (Return on Investment). Finally, there is increasing interest in mobile
across the corporate space, where enterprises are increasingly seeking to utilise SMS as a communications
channel.

Thus, while there is still substantial demand for a number of services enabled and/or monetised by short
codes, it is fair to say that there is also scope for mechanisms which could deliver the same – if not more
– results at a lower cost.


4.1 The Alternative of Long Numbers

Long Numbers – otherwise known as long codes or virtual mobile numbers - are standard MSISDN
numbers with around 10 digits (depending on country) which have been integrated into a SMS/MMS
(Multimedia Messaging Service) solution via dedicated software and hardware. The solution enables both
MT (Mobile Terminated) and MO (Mobile Inbound/Mobile Originated) SMS.

The following graphic illustrates the flow of inbound messages for virtual mobile numbers. The MO
message is sent from the end user and delivered to the enterprise client via a long code receiver gateway
operated by the long number provider.

                                                   Page 5
Long Numbers for SMS Reception and Interaction

                     Figure 2: Flow of Inbound Messages from Long Numbers




                                                Source: tyntec



4.2 The Benefits of Long Numbers

i. Long Numbers Enable Global Reach

One of the key advantages of long numbers is that a single virtual MSISDN can reach all consumers, not
just in a single market but globally; likewise, the return path can be used even when the end user is
roaming – this is a key distinction from short codes, where the end user will still receive the outbound
message but might not be able to respond because the inbound message would not be recognised by the
MNO on whose network that individual is roaming.

ii. Long Numbers Have Short Integration Timeframe

Because service providers need only reach agreement with SMS provider (which in turn deals with a single
operator, MVNO or aggregator), the integration time is typically much shorter (2-3 weeks) than is the
case with short codes.

iii. Long Numbers Enable Low Cost Targeted Messaging

As with short codes, long numbers can be either shared or dedicated. Furthermore, from a cost
perspective, long numbers are more attractive for a number of reasons. In the first case, because code
providers can give each client their own long number, keywords are free. Secondly, because each business
can obtain multiple long numbers at very low cost, it allows those businesses the opportunity to target
their customer base in a far more effective manner: rather than, say, deliver the same marketing message
via a single, higher-cost short code, the long number alternative enables the business to focus specific text
alerts (otherwise known as “blasts”) at particular target demographics, thereby increasing the potential for
higher response rates and/or lower opt-out rates.



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Long Numbers for SMS Reception and Interaction

iv. Long Numbers are Associated with Standard Pricing

It is arguable that, while long numbers may not be committed to memory as easily as short codes – and
require an additional 4-5 key strokes – since they appear as standard MSISDN numbers, they carry none
of the residual stigma which may still be attached in the minds of some consumers. Indeed, from a
consumer perspective, because an SMS sent to a long number always has a standard price, it provides the
end user with the reassurance – reinforced by its appearance as a standard MSISDN number – that
sending will not incur a premium charge, and in most cases that SMS can be deducted from the end user
bundles.

v. Long Numbers Can Be Voice Enabled

Finally, because long numbers are standard phone numbers, they can be voice enabled, thereby allowing
the option of SMS and/or voice communication as a basis for convergence and unified communication
services. This facility is particularly useful for client enterprises such as call centres, customer care
providers and IVR (Interactive Voice Response) providers in that it enables them to offer consumers a
single point of contact for inquiries, whether those customers are texting in or calling an IVR system.

The following table provides a summary of the various pros and cons of short vs long numbers.

                            Table 1: Benefits of Long Numbers vs Short Codes

                  Long numbers                                               Short codes
Available from every network                             Available only from the network(s) they are defined
                                                         in
Available internationally                                Available in one country only
Available for users that are roaming                     Very often not available while roaming
Associated with standard pricing                         Associated with premium pricing/ residual negative
                                                         connotations
Low cost                                                 Expensive (short codes can cost up to several
                                                         thousand Euro)
Short set up time (2-3 weeks)                            Difficult to set up (require contract and availability
                                                         with each operator, also a local presence in the
                                                         respective country might be required)

                                            Source: Juniper Research

Arguably the greatest hurdle that long numbers face is awareness: despite the fact that such codes have
been commercially available for nearly a decade, there were initially, if not wholly overlooked, then largely
overshadowed by short codes. Utilisation of such codes varies by country: while usage is relatively strong
in the UK, in other populous European nations such as France and Germany, there are comparatively few
deployments. However, their key advantages over short codes – primarily their low cost, low time to
deployment and potential for international usage - combined with the evolution of the mobile market,
makes them ripe for reappraisal and (re)discovery.


4.3 Use Cases for Long Numbers

While long numbers cannot be used as a billing mechanism, we have observed that this use case –
essentially the primary driver for short codes – has been adversely impacted both by the emergence of
alternative mechanisms and (to an extent) by a reduction in the level of consumer trust.

The beauty of two-way messaging is that it adds a return path for outbound communication, allowing
companies to explore a variety of new use cases, gather feedback from their customers and built a strong
and loyal followership. It is arguable that, for many other P2A/A2P applications, long numbers can offer a
more affordable, less time-consuming, alternative to short codes in this regard.

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Long Numbers for SMS Reception and Interaction

This is especially interesting for, but not restricted to: Mobile content providers, Message and MSISDN
resellers, WASPs (Wireless Application Service Providers), MVNEs (Mobile Virtual Network Enablers),
MVNOs, MNOs, Advertising agencies, TV, radio and other media channels and social networking and
micro-blogs.

The following section outlines a number of established – and emerging – use cases.

i. Marketing/Advertising Campaigns

As advertising budgets have been constrained in the wake of the global recession, mobile is a one of very
few media which has successfully bucked the trend and experienced a marked growth in adspend. Indeed,
it is arguable that, from the perspective of the mobile advertising industry, the recession was indirectly
advantageous insofar as it obliged brands to concentrate spend on engagement rather than reach, and to
focus on highly targeted campaigns with a quantifiable response rate – both areas in which mobile can
score highly against its competitors. At the same time, a mass market of consumers were discovering that
mobiles now offered attractive, engaging applications and comparatively easy access to Internet services,
thanks to the success of Apple’s iPhone and the welter of consumer-oriented smartphones that had
followed in its wake.

Given the ubiquity of SMS-enabled handsets, and end user familiarity with the service, SMS soon became
the leading mobile delivery mechanism for mobile advertising as brands (and indeed political parties)
recognise the scale of its potential reach: for example, in India, during the country’s 2009 general election
campaign, Netcore Solutions bought an inventory of 1 billion SMS on behalf of the Bharatiya Janata Party
(BJP). And yet, despite its lineage, the potential for 2-way SMS in this regard has yet to be fully explored,
given that it allows feedback from, and interaction with, the target audience.

More recently, however, the increased options of targeted advertising afforded to advertisers mean that
SMS can be used more effectively than was previously the case: for example, Blyk – originally an ad-
supported MVNO which latterly transformed into a mobile advertising consultancy – offered advertising
targeted at its 16-24 year old user base, which in several cases prompted response rates in excess of 50%.

The levels achieved by Blyk were exceptional, but even text-based campaigns with a modicum of targeting
and interactivity can achieve impressive response rates. During 2009, for example, the US ad solutions
provider ran targeted SMS-based campaigns for Coca Cola (targeting 18-34 year olds), which resulted in a
5.2% response rates; and for an unnamed cable TV operator, which generated a 4.7% response rate.

Another point bearing in mind in that, even though SMS lacks the rich media content of other advertising
formats, it is ubiquitous (virtually all handsets offer texting) and with campaigns it can be more effective at
gaining eyeballs than, say, email: many emails that are not sent from a recognised acquaintance of the
recipient are deleted without being viewed, whereas most text messages are opened and read. However,
when a campaign uses multiple Long Numbers – as a means of segmenting the target demographics – not
only is the code even more likely to be viewed (inasmuch as it comes from what is perceived to be a
“standard” number), but the client is able to analyse the scale/nature of responses by individual long
number.

Thus, long numbers are an ideal mechanism for the facilitation of campaigns and promotions, and also
offer the potential for multinational campaigns/competitions, via text to win.

ii. Voting

SMS-based voting has become an increasingly popular means of interacting with content from other media,
most notably television. It is typically one of a number of voting channels utilised by broadcasters, including
telephony and online, and – in combination – the scale of votes cast is now immense in some cases.

iii. Information Services

Traditional “push” SMS-based information services – in which customers subscribed to alerts providing
regular news, sports, travel and weather updates – have increasingly been augmented to include “pull”
services, such as price comparison sites where consumers can send a SMS with the product name to a
long number and receive the retail price from a selection of stores by return SMS.

                                                    Page 8
Long Numbers for SMS Reception and Interaction

iv. Reminders

Users can opt-in to receive SMS reminders by sending their request to a long number. This helps them
not to forget important events like meetings, appointments or birthdays.

v. Social Networking

Many social networks have utilised status updates (and discussion posts) via SMS for several years: for
example, Facebook first introduced this facility in 2007, and subsequently expanded the service to enable
users to receive SMS notifications of updates from other users.

Furthermore, in markets where fixed broadband adoption and smartphone penetration are low, there is a
growing demand for social networks which rely heavily on SMS. Perhaps the most notable of these (other
than Twitter, see below) is SMS GupShup, a group SMS service that allows users to create mobile
communities and broadcast messages to them. Based in India and supporting over a dozen languages
(albeit in English script), the company describes itself as ‘a social messaging service to share and connect
with friends and fans’. Launched in mid-2007, the service had around 45 million users as of May 2011 and
is now processing over 2 billion messages per month (up from 480 million per month a year earlier).

However, while many of the extant update/posting services are enabled by short codes, the set-up
demands of that option has meant that the availability of updates via SMS is limited only to those MNOs
with which the social network (and its messaging enabler) has concluded agreements.

a. Case Study: Twitter
The microblogging website Twitter was founded in 2006 and now has over 300 million users worldwide.
To enable its SMS updates, Twitter uses a combination of short codes and long numbers. While the social
networking site has agreements with operators in 76 countries, only in five (Canada, Indonesia, Saudi
Arabia, the UK and the US) does it have agreements with all network operators. For those Twitter users
who wish to post mobile updates and who either (a) take their service from other MNOs or (b) live in
countries without operator agreements (e.g. France), Twitter offers three long numbers (a UK, a German,
and a Finnish number) for which users are charged either local or international message rates.

vi. Dating & Chat Services

Globally, there were around 60 million users of mobile dating and chat services in 2010. Juniper Research
estimates that the annual revenues generated by mobile dating and chat services exceeded $1 billion for
the first time last year; these are expected to reach nearly $1.6 billion by 2015. Many of these services –
particularly in developing markets – still rely heavily on SMS as a service enabler.

In addition to the potential B2B (Business to Business) utilisation of long numbers in this regard, dating
also offers increased potential in the D2C (Direct to Consumer) space. Long numbers are now being
leased by those engaged in online/mobile dating who are unwilling to disclose their own home/phone
number, allowing both voice and text communication with added security and privacy.

vii. Customer Care

For an enterprise (such as a retailer, a utilities company or a mobile network operator) to sustain and
enhance its relationship with its customers, it is imperative for that enterprise to keep in regular contact
with those customers.

It is quite possible, for example, that the consumer may find his or her eye turned by attractive offers and
plans from competing companies and/or may feel in some way dissatisfied with what he or she may feel
are the constraints of their existing service subscription.

Meanwhile, if that customer has signed a contract to receive a particular service (e.g. pay TV or
electricity), it is also possible that the consumer’s particular requirements (and, quite conceivably, financial
status) may have altered since the contract was signed.




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Long Numbers for SMS Reception and Interaction

Furthermore, it is imperative that the enterprise ensures that communication is not wholly one-way: the
enterprise should facilitate consumer responses, requests and feedback both to enable the users to change
their plans, and to improve their own packages on offer.

Contact could be via a number of channels, including SMS, call and/or email. SMS is particularly useful as a
return (feedback) channel in this regard, providing more convenience to the customers and reducing the
resources need in the contact centre.

viii. Process Management

Furthermore, SMS solutions can be integrated into enterprise processes, like supply chain management
processes, to improve efficiency: for example, personnel can opt to receive alerts when product stock falls
below a specified level or if demand exceeds inventory. Similarly, personnel in the field can use SMS to
determine whether a particular item is in stock; to answer customer queries about an item; or, to access
information pertaining either to a particular order or to payment track records.

ix. Subscription

Opt-in SMS enables enterprises to utilise permission-based campaigns which are both targeted and
respectful of privacy and data protection rules.

Consumers can subscribe to such alerts by sending a text message to an inbound number, which is
automatically integrated into the company’s customer database. An additional subscription channel can
also be added online.

By utilising opt-in and subscription services enabled via inbound SMS, enterprises can integrate the mobile
channel for marketing activities such as text-to-win campaigns, mobile advertising, mobile content delivery,
downloads & sharing and mobile content/entertainment updates.

x. Check In

Mobile Interaction allows airlines to add innovative elements into existing customer services while
replacing paper-based tickets, as well as meeting the requirements of IATA (International Air Transport
Association).

Mobile check-in is provided via a 2D barcode SMS ticketing solution, enabling passengers to check in via
their mobile handset. This means that a printed boarding ticket is no longer necessary and that passengers
do not have to queue at check-in counters or machines.

The m-boarding pass can be provided to the passenger in various formats, such as SMS (via WAP-Push or
hyperlink SMS), MMS, via a mobile application or through the mobile browser (WAP).




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Long Numbers for SMS Reception and Interaction


5. Enabling Long Number Services: The
Role of the Mobile Interaction Service
Provider
Within the A2P/P2A messaging value chain, the role of the mobile interaction service provider is to
provide a messaging platform/MSC (Mobile Switching Centre) gateway to integrate mobile channels,
including messaging solutions, into business applications and thereby facilitate two-way communication in
B2B, B2C (Business to Consumer) and C2C (Consumer to Consumer) deployments.

Typically, the mobile interaction service provider will offer services including, but not limited to:

   • Outbound (MT) SMS
   • Inbound (MO) SMS
   • Two-way (MT/MO) SMS
While the majority of mobile interaction service providers have based their strategy around
dedicated/shared short code SMS, a number – such as tyntec – have opted to offer long numbers as an
alternative service delivery mechanism.


5.1 Case Study: tyntec as Long Number Provider

Founded in 2002, tyntec has offices in the UK (London), Germany (Munich and Dortmund) and Singapore.
The company offers mobile messaging and information services to mobile network operators, enterprises,
mobile service providers and Internet companies. In 2008, tyntec was the first company to offer SLAs
(Service Level Agreements) for mobile messaging: these agreements guarantee delivery, reliability, uptime
and throughput. In this regard, tyntec was also the first company to create an industry standard for high-
quality SMS, and to offer a 15 second SMS delivery guarantee.

According to Michael Kowalzik, CEO of tyntec: “Long numbers are a cost effective, internationally
available and simple mobile interaction channel and they offer brands a different way of establishing high-
value mobile interaction with their stakeholders. tyntec has always been aware of the advantages of long
codes and has offered them successfully in the market for several years.”

tyntec states that its inbound messaging platform is secure and reliable, and can handle high volumes of
inbound SMS per second, even at peak times. Its inbound service is available worldwide, providing
international and local numbers tailored to customer requirements; the company adds that its inbound
capacity was engineered specifically for customers requiring fast and reliable handling of incoming
messages for mission-critical applications.

As part of its long number portfolio, tyntec not only offers inbound SMS but 2way communication which is
the seamless combination of its Mobile Outbound and Inbound Services which reaches more than 90% of
mobile subscribers worldwide.

In addition to providing long numbers, tyntec also offers a range of products and services including:

   • Online SMS Portal - provides users with the ability to send SMS directly from the desktop,
        allowing global connectivity using tyntec’s network.
   • Number Lookup - a network based service allowing organisations to offer “precise and cost-
        effective mobile communications and authentication processes” by interrogating handset
        information directly from the GSM network. This allows companies to clean subscriber databases,
        analyse accurate data and practice anti-fraud measures.




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Long Numbers for SMS Reception and Interaction

   • Mobile Authentication – enables 2-factor authentication via SMS, for use in m-banking, e-
       commerce sites, micro-transactions, access verification to enterprise systems, mobile subscriber
       identity verification and the implementation of application log-ins.
   • Mobile Ticketing – includes the integration of check in, boarding passes, rail tickets, event tickets
       or discount coupons - into a variety of applications.
tyntec has strategic partnerships with a range of operators in all continents. This allows the company to
provide reach into 600 networks across 190 countries. tyntec also works with a number of channel
partners, including dedicated mobile specialists and those offering a broader portfolio of services.




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Long Numbers for SMS Reception and Interaction


Glossary
  Abbreviation              Description

  A2P                       Application to Person
  B2B                       Business to Business
  B2C                       Business to Consumer
  BJP                       Bharatiya Janata Party
  C2C                       Consumer to Consumer
  CDMA                      Code Division Multiple Access
  CTIA                      Cellular Telecommunications and Internet Association
                            (The Wireless Association)
  D2C                       Direct to Consumer
  GSM                       Global System for Mobile Communication
  IATA                      International Air Transport Association
  ICSTIS                    Independent Committee for the Supervision of Standards of Telephone
                            Information Services
  ISDN                      Integrated Services Digital Network
  IVR                       Interactive Voice Response
  M2M                       Machine to Machine
  MMS                       Multimedia Messaging Service
  MNO                       Mobile Network Operator
  MO                        Mobile Inbound/Mobile Originated
  MSC                       Mobile Switching Centre
  MSISDN                    Mobile Subscriber Integrated Services Digital Number
  MT                        Mobile Terminated
  MVNE                      Mobile Virtual Network Enablers
  MVNO                      Mobile Virtual Network Operator
  NGN                       Nigerian Naira (ISO currency code)
  P2A                       Person to Application
  P2P                       Person to Person
  ROI                       Return on Investment
  SLA                       Service Level Agreement
  SMPP                      Short Message Peer to Peer
  SMS                       Short Message Service
  SMS-MO                    Mobile Inbound SMS
  SMS-MT                    Mobile Outbound SMS
  WASP                      Wireless Application Service Provider




                                               Page 13

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Long Numbers for SMS Reception and Interaction

  • 1.
  • 2. Long Numbers for SMS Reception and Interaction Table of Contents Long Numbers for SMS Reception and Interaction ..................................... 2 1. Introduction – the Success of SMS.......................................................................................... 2 2. The Rise of 2 Way SMS............................................................................................................ 3 Figure 1: SMS Traffic Volumes 2010 & 2016 (trillion messages) Split by P2P & P2A/A2P .................... 3 3. Delivering A2P/P2A Services via Short Codes ...................................................................... 3 3.1 The Advantages of Short Codes ........................................................................................................................... 4 i. Short Codes Provide a Billing Mechanism ........................................................................................................... 4 ii. Short Codes Provide an Immediate Call to Action.......................................................................................... 4 iii. Short Codes Enable Brand Building ..................................................................................................................... 4 3.2 The Shortcomings of Short Codes ....................................................................................................................... 4 i. Short Codes Can Be Expensive .............................................................................................................................. 4 ii. Short Code Deployment Can Be Time Consuming ........................................................................................ 4 iii. Short Codes are Enabled for National Use Only ............................................................................................ 4 iv. Public Trust in Short Code-delivered Services Has Diminished .................................................................. 5 4. The Need for Alternative Inbound Delivery Mechanisms .................................................... 5 4.1 The Alternative of Long Numbers........................................................................................................................ 5 Figure 2: Flow of Inbound Messages from Long Numbers ............................................................................ 6 4.2 The Benefits of Long Numbers ............................................................................................................................. 6 i. Long Numbers Enable Global Reach ..................................................................................................................... 6 ii. Long Numbers Have Short Integration Timeframe ......................................................................................... 6 iii. Long Numbers Enable Low Cost Targeted Messaging ................................................................................... 6 iv. Long Numbers are Associated with Standard Pricing .................................................................................... 7 v. Long Numbers Can Be Voice Enabled................................................................................................................. 7 Table 1: Benefits of Long Numbers vs Short Codes .................................................................................... 7 4.3 Use Cases for Long Numbers................................................................................................................................ 7 i. Marketing/Advertising Campaigns .......................................................................................................................... 8 ii. Voting ........................................................................................................................................................................... 8 iii. Information Services ................................................................................................................................................ 8 iv. Reminders .................................................................................................................................................................. 9 v. Social Networking ..................................................................................................................................................... 9 a. Case Study: Twitter ............................................................................................................................................... 9 vi. Dating & Chat Services ........................................................................................................................................... 9 vii. Customer Care........................................................................................................................................................ 9 viii. Process Management ........................................................................................................................................... 10 5. Enabling Long Number Services: The Role of the Mobile Interaction Service Provider . 11 5.1 Case Study: tyntec as Long Code Provider ...................................................................................................... 11 Glossary....................................................................................................................................... 13 Page 1
  • 3. Long Numbers for SMS Reception and Interaction 1 Long Numbers for SMS Reception and Interaction 1. Introduction – the Success of SMS The mobile phone was simply just a means of making voice calls when away from the home and office. However, the onset of P2P (Person to Person) SMS (Short Message Service) proved a definitive game- changer. From a humble beginning, SMS has now become a run-away success, although the popularity of SMS varies by country and region. Its growth was initially strongest in Europe, and particularly in the UK, where the average monthly usage of the service in the country has increased from just 0.8 per mobile subscriber in 1998 to 87.4 in 2008, 102.4 in 2009 and 131.0 in 2010. Recent growth in the US has been even more spectacular. Dogged by issues over interoperability between GSM (Global System for Mobile Communication) and CDMA (Code Division Multiple Access), adoption of text messaging was, initially, much slower. But once hubbing providers enabled cross-network messaging, usage soared dramatically. According to recent figures released by CTIA – The Wireless Association (Cellular Telecommunications and Internet Association), a US-based industry association, more than 2.05 trillion text messages were sent in the country in the twelve months to the end of December 2010, equivalent to 581.1 per mobile user per month. Just five years earlier, the corresponding monthly usage in the US was 34.8 texts per user per annum. However, these levels of usage have been overhauled by those in a number of Asian countries, most notably the Philippines. Filipinos are said to be the global champions of SMS, sending an astonishing 650 text messages per subscriber per month, while more than a billion SMSs are transmitted in the Philippines each day. Excluding M2M (Machine to Machine) messaging, global SMS traffic approached 5.4 trillion messages over the course of 2010 and is expected to rise to more than 10.7 trillion by 2016. Page 2
  • 4. Long Numbers for SMS Reception and Interaction 2. The Rise of 2 Way SMS While initial adoption was driven by person-to-person text messaging, recent growth in SMS volumes has been accentuated by the increasingly widespread utilisation of two-way messaging. This is the process whereby a text message (e.g. marketing or from an information service) is sent to the end user, and where a return path exists for the end user to respond to that message by sending his/her own SMS. Similarly, the end user can instigate the process (e.g. by requesting information) and have that message sent back to him or her via SMS. This process is also known as A2P (Application to Person) and P2A (Person to Application) messaging. At the outset, this was largely the preserve of simple, text-based information services, mass marketing campaigns, and content access/billing mechanisms. However, use cases – and usage – proliferated, most notably through interactive voting and social networking. In developing markets, SMS is still the only ubiquitous data service, and has been at the heart of many successful financial services, most notably Safaricom’s MPESA in Kenya. The net result is that there is a substantial – and fast growing – market for services facilitated by SMS. Juniper Research estimates that the proportion of A2P/P2A traffic relative to the total will increase from 13% in 2010 to 22% in 2016: in terms of traffic volumes, A2P/P2A traffic is thus expected to increase from 720 billion messages annually in 2010 to nearly 2.4 trillion by 2016. Figure 1: SMS Traffic Volumes 2010 & 2016 (trillion messages) Split by P2P & P2A/A2P Source: Juniper Research 3. Delivering A2P/P2A Services via Short Codes Historically, one of the most popular mechanisms for A2P/P2A messaging has been short codes, primarily – but not exclusively – as a fast means of accessing site landing pages and of paying for mobile content. Short codes – so named because the number of digits (typically 5-6) are significantly less than those in a standard MSISDN (Mobile Subscriber Integrated Services Digital Number), meaning that they are more easily remembered - can be either dedicated or shared, and can be leased from SMS providers. With shared codes, the number is shared between a number of client enterprises and the recipient enterprise is determined by keyword recognition. Page 3
  • 5. Long Numbers for SMS Reception and Interaction 3.1 The Advantages of Short Codes As a means of engaging with the end user – both for marketing purposes and to deliver content – short codes had (and have) a number of intrinsic benefits. Above and beyond the obvious advantage in that (as noted above) they are shorter and easier to remember than standard (ISDN or MSISDN) numbers, they provide enterprises with a number of clearly discernable benefits. i. Short Codes Provide a Billing Mechanism Perhaps the critical advantage of short codes is that – in either A2P or P2A form – they provide a billing mechanism, allowing the content or service provider to charge a premium above and beyond the standard cost of an SMS. Short codes also facilitate on-going (subscription) services billed via recurring A2P SMS. ii. Short Codes Provide an Immediate Call to Action By advertising short codes in print, TV or online media, brands and content/service providers offer an immediate call to action. The end user simply types in the short code and arrives at a landing page. iii. Short Codes Enable Brand Building Through the use of a dedicated short code, companies have the opportunity to build an association between the short code and their brand. 3.2 The Shortcomings of Short Codes However, utilising short codes has a number of disadvantages, and these are outlined below: i. Short Codes Can Be Expensive In the first instance, short codes can be expensive: in Mexico, for example, registering a short code costs around €2,000 with subsequent code rental costs of €1,000 per month; in Nigeria, registration of dedicated short codes costs NGN630,000 ($4,000) with a monthly cost of NGN100,000 ($634), although shared short code prices are markedly lower, at NGN60,000 ($380) for registration and NGN15,000 ($95) per month. For potential customers with smaller marketing budgets, these costs could be prohibitive, particularly for longer-term campaigns. ii. Short Code Deployment Can Be Time Consuming Secondly, the set-up process can be lengthy. To reach all subscribers within a given market, short code providers need to register the code and deploy individually with each of the MNOs (Mobile Network Operators) and full MVNOs (Mobile Virtual Network Operators) in that market, and as market liberalisation has resulted in the licensing of additional players, this means that those providers now have to negotiate 8-10 such deals. (In some markets where there are still a significant number of small-scale regional players, such as the US, the net result can be that the short code providers simply ignore those players altogether.) Additionally, in some markets the process can be exacerbated by the need to have a local presence in the market in question (e.g. Malaysia). Set up time is thus typically 90 days or more. iii. Short Codes are Enabled for National Use Only As short codes must be activated on a per country basis, this precludes the use of a single code across multiple markets, thereby adding significantly to the cost and deployment time of any service which sought to utilise this mechanism on a pan-national basis. In addition, the vast majority of short codes defined in one country cannot be used by subscribers while being in a roaming situation. Page 4
  • 6. Long Numbers for SMS Reception and Interaction iv. Public Trust in Short Code-delivered Services Has Diminished It is also fair to say that because there have been a number of high-profile cases – across a number of national markets - where services using short codes as their billing mechanism were the subject of regulatory actions, this resulted not only in the service providers attracting opprobrium, but that certain negative connotations were attached to the codes themselves. Such cases frequently involved short codes being utilised for recurring billing, but mismanagement of some interactive voting services also led the UK premium service regulator PhonePayPlus to ban SMS as a voting mechanism in 2009. (Individual instances prior to the imposition of the ban had included a £50,000 fine and 12-month ban imposed by PhonePayPlus’ predecessor, ICSTIS (Independent Committee for the Supervision of Standards of Telephone Information Services), on Atlas Interactive after consumers reported the receipt of unsolicited jokes received via reverse-billed SMS, and a £75,000 fine imposed on Tanla over unsolicited text messages received in respect of a SMS auction service where users were not “given an informed opportunity of opting out of receiving future or current marketing information”.) While the ban was subsequently lifted, residual concerns remain. Furthermore, the popularity of short codes as a billing mechanism has also been adversely impacted by the industry-wide transition to an app-store centric model which resulted in a marked reduction in content purchases from traditional platforms such as off-portal aggregators and distributors. At the same time, the perceived value of much of the content historically monetised through short codes (such as ringtones, logos, and adult content) has been diluted by the widespread availability of more sophisticated content (e.g., historical pricing of $4-5 for a ringtone has become unsustainable within a market where full tracks downloads are available for $1 or less) and access to free content enabled by a more “open” industry model which facilitates low cost mobile internet browsing. 4. The Need for Alternative Inbound Delivery Mechanisms It is fair to say that the evolution of the mobile market has also created new opportunities for interaction across the value chain. Firstly, the emergence of a “Web 2.0” environment during the social networking explosion has led to a far greater degree of interaction between the end user and online content accessed by and indeed created on/uploaded from the mobile device. Secondly, the surge in consumer smartphone adoption – and the attendant advances in mobile analytics - has generated unprecedented interest in the mobile channel amongst brands and retailers, who are recognising not only that their spend must increasingly migrate to digital, but that an ever greater proportion of that digital spend must be allocated to mobile. There is increasing recognition that while the ubiquity of mobile offers the potential for substantial reach, the handset technologies can also enable a high and quantifiable degree of engagement, offering the potential for strong ROI (Return on Investment). Finally, there is increasing interest in mobile across the corporate space, where enterprises are increasingly seeking to utilise SMS as a communications channel. Thus, while there is still substantial demand for a number of services enabled and/or monetised by short codes, it is fair to say that there is also scope for mechanisms which could deliver the same – if not more – results at a lower cost. 4.1 The Alternative of Long Numbers Long Numbers – otherwise known as long codes or virtual mobile numbers - are standard MSISDN numbers with around 10 digits (depending on country) which have been integrated into a SMS/MMS (Multimedia Messaging Service) solution via dedicated software and hardware. The solution enables both MT (Mobile Terminated) and MO (Mobile Inbound/Mobile Originated) SMS. The following graphic illustrates the flow of inbound messages for virtual mobile numbers. The MO message is sent from the end user and delivered to the enterprise client via a long code receiver gateway operated by the long number provider. Page 5
  • 7. Long Numbers for SMS Reception and Interaction Figure 2: Flow of Inbound Messages from Long Numbers Source: tyntec 4.2 The Benefits of Long Numbers i. Long Numbers Enable Global Reach One of the key advantages of long numbers is that a single virtual MSISDN can reach all consumers, not just in a single market but globally; likewise, the return path can be used even when the end user is roaming – this is a key distinction from short codes, where the end user will still receive the outbound message but might not be able to respond because the inbound message would not be recognised by the MNO on whose network that individual is roaming. ii. Long Numbers Have Short Integration Timeframe Because service providers need only reach agreement with SMS provider (which in turn deals with a single operator, MVNO or aggregator), the integration time is typically much shorter (2-3 weeks) than is the case with short codes. iii. Long Numbers Enable Low Cost Targeted Messaging As with short codes, long numbers can be either shared or dedicated. Furthermore, from a cost perspective, long numbers are more attractive for a number of reasons. In the first case, because code providers can give each client their own long number, keywords are free. Secondly, because each business can obtain multiple long numbers at very low cost, it allows those businesses the opportunity to target their customer base in a far more effective manner: rather than, say, deliver the same marketing message via a single, higher-cost short code, the long number alternative enables the business to focus specific text alerts (otherwise known as “blasts”) at particular target demographics, thereby increasing the potential for higher response rates and/or lower opt-out rates. Page 6
  • 8. Long Numbers for SMS Reception and Interaction iv. Long Numbers are Associated with Standard Pricing It is arguable that, while long numbers may not be committed to memory as easily as short codes – and require an additional 4-5 key strokes – since they appear as standard MSISDN numbers, they carry none of the residual stigma which may still be attached in the minds of some consumers. Indeed, from a consumer perspective, because an SMS sent to a long number always has a standard price, it provides the end user with the reassurance – reinforced by its appearance as a standard MSISDN number – that sending will not incur a premium charge, and in most cases that SMS can be deducted from the end user bundles. v. Long Numbers Can Be Voice Enabled Finally, because long numbers are standard phone numbers, they can be voice enabled, thereby allowing the option of SMS and/or voice communication as a basis for convergence and unified communication services. This facility is particularly useful for client enterprises such as call centres, customer care providers and IVR (Interactive Voice Response) providers in that it enables them to offer consumers a single point of contact for inquiries, whether those customers are texting in or calling an IVR system. The following table provides a summary of the various pros and cons of short vs long numbers. Table 1: Benefits of Long Numbers vs Short Codes Long numbers Short codes Available from every network Available only from the network(s) they are defined in Available internationally Available in one country only Available for users that are roaming Very often not available while roaming Associated with standard pricing Associated with premium pricing/ residual negative connotations Low cost Expensive (short codes can cost up to several thousand Euro) Short set up time (2-3 weeks) Difficult to set up (require contract and availability with each operator, also a local presence in the respective country might be required) Source: Juniper Research Arguably the greatest hurdle that long numbers face is awareness: despite the fact that such codes have been commercially available for nearly a decade, there were initially, if not wholly overlooked, then largely overshadowed by short codes. Utilisation of such codes varies by country: while usage is relatively strong in the UK, in other populous European nations such as France and Germany, there are comparatively few deployments. However, their key advantages over short codes – primarily their low cost, low time to deployment and potential for international usage - combined with the evolution of the mobile market, makes them ripe for reappraisal and (re)discovery. 4.3 Use Cases for Long Numbers While long numbers cannot be used as a billing mechanism, we have observed that this use case – essentially the primary driver for short codes – has been adversely impacted both by the emergence of alternative mechanisms and (to an extent) by a reduction in the level of consumer trust. The beauty of two-way messaging is that it adds a return path for outbound communication, allowing companies to explore a variety of new use cases, gather feedback from their customers and built a strong and loyal followership. It is arguable that, for many other P2A/A2P applications, long numbers can offer a more affordable, less time-consuming, alternative to short codes in this regard. Page 7
  • 9. Long Numbers for SMS Reception and Interaction This is especially interesting for, but not restricted to: Mobile content providers, Message and MSISDN resellers, WASPs (Wireless Application Service Providers), MVNEs (Mobile Virtual Network Enablers), MVNOs, MNOs, Advertising agencies, TV, radio and other media channels and social networking and micro-blogs. The following section outlines a number of established – and emerging – use cases. i. Marketing/Advertising Campaigns As advertising budgets have been constrained in the wake of the global recession, mobile is a one of very few media which has successfully bucked the trend and experienced a marked growth in adspend. Indeed, it is arguable that, from the perspective of the mobile advertising industry, the recession was indirectly advantageous insofar as it obliged brands to concentrate spend on engagement rather than reach, and to focus on highly targeted campaigns with a quantifiable response rate – both areas in which mobile can score highly against its competitors. At the same time, a mass market of consumers were discovering that mobiles now offered attractive, engaging applications and comparatively easy access to Internet services, thanks to the success of Apple’s iPhone and the welter of consumer-oriented smartphones that had followed in its wake. Given the ubiquity of SMS-enabled handsets, and end user familiarity with the service, SMS soon became the leading mobile delivery mechanism for mobile advertising as brands (and indeed political parties) recognise the scale of its potential reach: for example, in India, during the country’s 2009 general election campaign, Netcore Solutions bought an inventory of 1 billion SMS on behalf of the Bharatiya Janata Party (BJP). And yet, despite its lineage, the potential for 2-way SMS in this regard has yet to be fully explored, given that it allows feedback from, and interaction with, the target audience. More recently, however, the increased options of targeted advertising afforded to advertisers mean that SMS can be used more effectively than was previously the case: for example, Blyk – originally an ad- supported MVNO which latterly transformed into a mobile advertising consultancy – offered advertising targeted at its 16-24 year old user base, which in several cases prompted response rates in excess of 50%. The levels achieved by Blyk were exceptional, but even text-based campaigns with a modicum of targeting and interactivity can achieve impressive response rates. During 2009, for example, the US ad solutions provider ran targeted SMS-based campaigns for Coca Cola (targeting 18-34 year olds), which resulted in a 5.2% response rates; and for an unnamed cable TV operator, which generated a 4.7% response rate. Another point bearing in mind in that, even though SMS lacks the rich media content of other advertising formats, it is ubiquitous (virtually all handsets offer texting) and with campaigns it can be more effective at gaining eyeballs than, say, email: many emails that are not sent from a recognised acquaintance of the recipient are deleted without being viewed, whereas most text messages are opened and read. However, when a campaign uses multiple Long Numbers – as a means of segmenting the target demographics – not only is the code even more likely to be viewed (inasmuch as it comes from what is perceived to be a “standard” number), but the client is able to analyse the scale/nature of responses by individual long number. Thus, long numbers are an ideal mechanism for the facilitation of campaigns and promotions, and also offer the potential for multinational campaigns/competitions, via text to win. ii. Voting SMS-based voting has become an increasingly popular means of interacting with content from other media, most notably television. It is typically one of a number of voting channels utilised by broadcasters, including telephony and online, and – in combination – the scale of votes cast is now immense in some cases. iii. Information Services Traditional “push” SMS-based information services – in which customers subscribed to alerts providing regular news, sports, travel and weather updates – have increasingly been augmented to include “pull” services, such as price comparison sites where consumers can send a SMS with the product name to a long number and receive the retail price from a selection of stores by return SMS. Page 8
  • 10. Long Numbers for SMS Reception and Interaction iv. Reminders Users can opt-in to receive SMS reminders by sending their request to a long number. This helps them not to forget important events like meetings, appointments or birthdays. v. Social Networking Many social networks have utilised status updates (and discussion posts) via SMS for several years: for example, Facebook first introduced this facility in 2007, and subsequently expanded the service to enable users to receive SMS notifications of updates from other users. Furthermore, in markets where fixed broadband adoption and smartphone penetration are low, there is a growing demand for social networks which rely heavily on SMS. Perhaps the most notable of these (other than Twitter, see below) is SMS GupShup, a group SMS service that allows users to create mobile communities and broadcast messages to them. Based in India and supporting over a dozen languages (albeit in English script), the company describes itself as ‘a social messaging service to share and connect with friends and fans’. Launched in mid-2007, the service had around 45 million users as of May 2011 and is now processing over 2 billion messages per month (up from 480 million per month a year earlier). However, while many of the extant update/posting services are enabled by short codes, the set-up demands of that option has meant that the availability of updates via SMS is limited only to those MNOs with which the social network (and its messaging enabler) has concluded agreements. a. Case Study: Twitter The microblogging website Twitter was founded in 2006 and now has over 300 million users worldwide. To enable its SMS updates, Twitter uses a combination of short codes and long numbers. While the social networking site has agreements with operators in 76 countries, only in five (Canada, Indonesia, Saudi Arabia, the UK and the US) does it have agreements with all network operators. For those Twitter users who wish to post mobile updates and who either (a) take their service from other MNOs or (b) live in countries without operator agreements (e.g. France), Twitter offers three long numbers (a UK, a German, and a Finnish number) for which users are charged either local or international message rates. vi. Dating & Chat Services Globally, there were around 60 million users of mobile dating and chat services in 2010. Juniper Research estimates that the annual revenues generated by mobile dating and chat services exceeded $1 billion for the first time last year; these are expected to reach nearly $1.6 billion by 2015. Many of these services – particularly in developing markets – still rely heavily on SMS as a service enabler. In addition to the potential B2B (Business to Business) utilisation of long numbers in this regard, dating also offers increased potential in the D2C (Direct to Consumer) space. Long numbers are now being leased by those engaged in online/mobile dating who are unwilling to disclose their own home/phone number, allowing both voice and text communication with added security and privacy. vii. Customer Care For an enterprise (such as a retailer, a utilities company or a mobile network operator) to sustain and enhance its relationship with its customers, it is imperative for that enterprise to keep in regular contact with those customers. It is quite possible, for example, that the consumer may find his or her eye turned by attractive offers and plans from competing companies and/or may feel in some way dissatisfied with what he or she may feel are the constraints of their existing service subscription. Meanwhile, if that customer has signed a contract to receive a particular service (e.g. pay TV or electricity), it is also possible that the consumer’s particular requirements (and, quite conceivably, financial status) may have altered since the contract was signed. Page 9
  • 11. Long Numbers for SMS Reception and Interaction Furthermore, it is imperative that the enterprise ensures that communication is not wholly one-way: the enterprise should facilitate consumer responses, requests and feedback both to enable the users to change their plans, and to improve their own packages on offer. Contact could be via a number of channels, including SMS, call and/or email. SMS is particularly useful as a return (feedback) channel in this regard, providing more convenience to the customers and reducing the resources need in the contact centre. viii. Process Management Furthermore, SMS solutions can be integrated into enterprise processes, like supply chain management processes, to improve efficiency: for example, personnel can opt to receive alerts when product stock falls below a specified level or if demand exceeds inventory. Similarly, personnel in the field can use SMS to determine whether a particular item is in stock; to answer customer queries about an item; or, to access information pertaining either to a particular order or to payment track records. ix. Subscription Opt-in SMS enables enterprises to utilise permission-based campaigns which are both targeted and respectful of privacy and data protection rules. Consumers can subscribe to such alerts by sending a text message to an inbound number, which is automatically integrated into the company’s customer database. An additional subscription channel can also be added online. By utilising opt-in and subscription services enabled via inbound SMS, enterprises can integrate the mobile channel for marketing activities such as text-to-win campaigns, mobile advertising, mobile content delivery, downloads & sharing and mobile content/entertainment updates. x. Check In Mobile Interaction allows airlines to add innovative elements into existing customer services while replacing paper-based tickets, as well as meeting the requirements of IATA (International Air Transport Association). Mobile check-in is provided via a 2D barcode SMS ticketing solution, enabling passengers to check in via their mobile handset. This means that a printed boarding ticket is no longer necessary and that passengers do not have to queue at check-in counters or machines. The m-boarding pass can be provided to the passenger in various formats, such as SMS (via WAP-Push or hyperlink SMS), MMS, via a mobile application or through the mobile browser (WAP). Page 10
  • 12. Long Numbers for SMS Reception and Interaction 5. Enabling Long Number Services: The Role of the Mobile Interaction Service Provider Within the A2P/P2A messaging value chain, the role of the mobile interaction service provider is to provide a messaging platform/MSC (Mobile Switching Centre) gateway to integrate mobile channels, including messaging solutions, into business applications and thereby facilitate two-way communication in B2B, B2C (Business to Consumer) and C2C (Consumer to Consumer) deployments. Typically, the mobile interaction service provider will offer services including, but not limited to: • Outbound (MT) SMS • Inbound (MO) SMS • Two-way (MT/MO) SMS While the majority of mobile interaction service providers have based their strategy around dedicated/shared short code SMS, a number – such as tyntec – have opted to offer long numbers as an alternative service delivery mechanism. 5.1 Case Study: tyntec as Long Number Provider Founded in 2002, tyntec has offices in the UK (London), Germany (Munich and Dortmund) and Singapore. The company offers mobile messaging and information services to mobile network operators, enterprises, mobile service providers and Internet companies. In 2008, tyntec was the first company to offer SLAs (Service Level Agreements) for mobile messaging: these agreements guarantee delivery, reliability, uptime and throughput. In this regard, tyntec was also the first company to create an industry standard for high- quality SMS, and to offer a 15 second SMS delivery guarantee. According to Michael Kowalzik, CEO of tyntec: “Long numbers are a cost effective, internationally available and simple mobile interaction channel and they offer brands a different way of establishing high- value mobile interaction with their stakeholders. tyntec has always been aware of the advantages of long codes and has offered them successfully in the market for several years.” tyntec states that its inbound messaging platform is secure and reliable, and can handle high volumes of inbound SMS per second, even at peak times. Its inbound service is available worldwide, providing international and local numbers tailored to customer requirements; the company adds that its inbound capacity was engineered specifically for customers requiring fast and reliable handling of incoming messages for mission-critical applications. As part of its long number portfolio, tyntec not only offers inbound SMS but 2way communication which is the seamless combination of its Mobile Outbound and Inbound Services which reaches more than 90% of mobile subscribers worldwide. In addition to providing long numbers, tyntec also offers a range of products and services including: • Online SMS Portal - provides users with the ability to send SMS directly from the desktop, allowing global connectivity using tyntec’s network. • Number Lookup - a network based service allowing organisations to offer “precise and cost- effective mobile communications and authentication processes” by interrogating handset information directly from the GSM network. This allows companies to clean subscriber databases, analyse accurate data and practice anti-fraud measures. Page 11
  • 13. Long Numbers for SMS Reception and Interaction • Mobile Authentication – enables 2-factor authentication via SMS, for use in m-banking, e- commerce sites, micro-transactions, access verification to enterprise systems, mobile subscriber identity verification and the implementation of application log-ins. • Mobile Ticketing – includes the integration of check in, boarding passes, rail tickets, event tickets or discount coupons - into a variety of applications. tyntec has strategic partnerships with a range of operators in all continents. This allows the company to provide reach into 600 networks across 190 countries. tyntec also works with a number of channel partners, including dedicated mobile specialists and those offering a broader portfolio of services. Page 12
  • 14. Long Numbers for SMS Reception and Interaction Glossary Abbreviation Description A2P Application to Person B2B Business to Business B2C Business to Consumer BJP Bharatiya Janata Party C2C Consumer to Consumer CDMA Code Division Multiple Access CTIA Cellular Telecommunications and Internet Association (The Wireless Association) D2C Direct to Consumer GSM Global System for Mobile Communication IATA International Air Transport Association ICSTIS Independent Committee for the Supervision of Standards of Telephone Information Services ISDN Integrated Services Digital Network IVR Interactive Voice Response M2M Machine to Machine MMS Multimedia Messaging Service MNO Mobile Network Operator MO Mobile Inbound/Mobile Originated MSC Mobile Switching Centre MSISDN Mobile Subscriber Integrated Services Digital Number MT Mobile Terminated MVNE Mobile Virtual Network Enablers MVNO Mobile Virtual Network Operator NGN Nigerian Naira (ISO currency code) P2A Person to Application P2P Person to Person ROI Return on Investment SLA Service Level Agreement SMPP Short Message Peer to Peer SMS Short Message Service SMS-MO Mobile Inbound SMS SMS-MT Mobile Outbound SMS WASP Wireless Application Service Provider Page 13