Analyst Report: Vodafone Carrier Services drives profitable new revenue from voice and SMS

Ovum’s overview of how new platforms are leveraging scale to drive growth

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In this report, Ovum looks at how Vodafone Carrier Services is using the latest messaging and voice network technologies to drive incremental growth and revenue for the group.

Ovum forecasts that A2P messaging will increase at a CAGR of 8% from 2014 to 2018, peaking at 1.3 billion messages in 2018.

The Vodafone Messaging Hub (VMH) and associated firewall, launched in May 2015, achieve two vital things in the fast-growing A2P SMS industry:

  • The SMS hub allows for simple, fast, and guaranteed delivery of A2P SMS’s to any of Vodafone’s 460+ million subscribers
  • The firewall blocks the holes in the SMS interconnection process that allow unscrupulous A2P players to send text messages without paying the recipient network

Regarding Vodafone’s international voice business, scale and efficiency are essential to achieving profitability, given the size of revenues still associated with international voice. Major players can gain rewards from investing in new technology to develop legacy services.

Vodafone Carrier Services new voice platform includes an intelligent routing engine which offers the potential for a level of routing efficiency that can save a fraction of a cent on every minute and deliver high-quality routing choices. In a business with the scale of Vodafone Carrier Services this could equate to a considerable uplift in profit.

The report also looks at the hosting and outsourcing opportunities available to Vodafone using these new technologies and how all options combined could together deliver revenue uplifts in the £millions to Vodafone’s operating companies.