SA's largest cellular operators, MTN and Vodacom, have told two bulk SMS providers to stop using so-called grey routes and register as wireless application service providers (WASPs).
Neotel and Telfree had been circumventing the preferred channels to send out application-to-person (A2P) messages on behalf of third parties.
Industry commentators expect the clampdown on this practice to reduce spam to cellphones, although, as of this morning, some end-users were still receiving spam SMSes from +2711, which ITWeb has been told is a Neotel number.
Previously, companies wanting to send commercial PC-generated SMSes had to sign up as WASPs with mobile operators.
However, after the Electronic Communications Act came into effect, it became possible for more entities to obtain individual electronic communications network services licences, allowing companies to sign interconnect agreements and send SMSes without becoming WASPs.
The A2P SMS market is worth more than R1 billion a year to the local network operators combined, says Pieter Streicher, MD of BulkSMS.com.
Banks and WASPs are now rapidly moving their A2P business to new entrants licensed by the Independent Communications Authority of SA, says Streicher. “This is evident from the large number of A2P SMS messages now originating from 087, 081 and 011 numbers.”
Making amends
MTN has told Telfree and Neotel they have to remedy the breach and sign bulk WASP SMS agreements. Kevin Jacobson, GM of business indirect sales at MTN SA, says both entities must stop using the so-called grey routes to send SMSes or face the suspension of SMS services.
Jacobson says interconnect is intended for subscriber-to-subscriber SMSes and not for application-to-subscriber SMSes, which are handled under the bulk SMS model - which banks and other similar institutions are managed under, he says.
MTN is in talks with both companies around moving their services to a suitable model, says Jacobson. “Should they wish to continue sending bulk SMSes, they would need to conclude a WASP bulk SMS agreement and pay the prescribed rates.”
Cellular operators require WASPs to belong to WASPA, which would then enable the association to regulate the traffic and crack down on unwanted commercial messages.
“The concern is that these routes are illegitimate and have resulted in a lot of our subscribers being flooded with spam messages. MTN has a responsibility to protect its customers and has started an initiative aimed at sheltering its customers from unsolicited messages,” notes Jacobson.
The move to stop the use of so-called grey routes should trim spam levels, adds Jacobson. “WASPs sending bulk SMS have to subscribe to the WASPA code of conduct, which is there to control spam, among other potential risks.
“Those in breach of the interworking agreements will need to pay for bulk services should they wish to continue. This will prevent them from undercutting legitimate WASPs.”
Vodacom declined to comment on commercial arrangements, but Neotel confirms it has received a letter from SA's largest operator, which has 28.9 million customers.
Neotel chief corporate services officer, Tracy Cohen, says the company is “in the process of responding” to letters from MTN and Vodacom. The operator would not provide any further comment.
Happy consumers
Streicher says the operators' decision to block A2P messaging that does not go through WASPA-registered companies should give networks better control over spam.
Using an interconnect agreement, as Neotel and Telfree were doing, to send bulk messages to end-users without lodging the originating numbers with WASPA meant the body could not take action against any offenders, says Streicher. “Consumers will be happy with anything that reduces spam.”
These so-called grey routes were used by many South African companies, as well as some international companies, and blocking the route should trim spam, explains Streicher.
However, the other result of the clampdown is that it will cost companies more to use WASPA members for messaging, compared to grey routes, comments Streicher. WASPs are charged by the networks to terminate SMS messages, but other operators such as Neotel and Telfree were not charged to terminate messages.
The increased cost of sending through direct routes will reduce spam to some extent, as the return on investment is reduced for unsolicited direct marketing campaigns, and messages can be traced to a WASP, Streicher says.
ITWeb was unable to contact Telfree, as the company does not list contact details on its Web site and a request via an online form could repeatedly not be processed.
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