Hampshire, UK – 23rd October 2023: A new study from Juniper Research, the foremost experts in telecommunications, has found that rapidly rising SMS business prices and emerging fraudulent tactics will diminish the demand from enterprises for SMS-based authentication.
As such, operators will only experience 4% growth in traffic in 2024, compared to average annual growth of 10% over the previous five years.
The rise of AIT (Artificially Inflated Traffic), where enterprises pay for SMS authentication traffic for users that do not exist, will be a key driver of rising SMS prices. This is leading enterprises to explore alternative authentication technologies, such as one-time passwords over OTT messaging apps and flash calling.
Find out more about the new report, Global Mobile Authentication Market 2023-2028, or download a free sample.
Growing Usage of Telco APIs
Over 50% of SMS traffic will be attributable to authentication use cases in 2024. To combat slowing SMS traffic growth, operators must promote authentication APIs such as Number Verify and SilentAuth, to keep demand for authentication services within operator-controlled environments. If operators are unable to reduce prices and fraud on their messaging networks, they risk losing vital authentication traffic and revenue to other channels.
Open Standards Will Accelerate API Roll-out
The GSMA Open Gateway, launched in 2023, will enable operators to swiftly develop and deploy API‑based authentication solutions, eliminating the need for user authentication, silently authenticating at the SIM-level instead. This will provide a frictionless experience for mobile users whilst retaining the use of telecoms networks.
Research author Rosie O’Connor commented: “With high prices and unreliable SMS termination, enterprises are beginning to lose faith in SMS authentication. Operator APIs offer an opportunity for operators to ensure that authentication remains on operator networks.”
About the Research Suite
The new research suite offers the most comprehensive assessment of the mobile authentication market to date, including insightful market analysis and in-depth forecasts for 60 countries. The dataset contains over 25,000 market statistics within a five-year period. It includes a ‘Competitor Leaderboard’ and an examination of future market opportunities.
Juniper Research has, for two decades, provided market intelligence and advisory services to the global telecommunications sector, and is retained by many of the world’s leading network operators and communications platforms.
For further details please contact Sam Smith, Press Relations
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