The research reveals that fighting fraud and achieving consolidation as the top challenges for CPaaS providers
XConnect, a Somos Company, the provider of world-class numbering intelligence solutions has launched a report that reveals that revenue leakage from fraud and platform inefficiencies will cost Communications Platform as a Service (CPaaS) $974.3 million in 2022, rising to $1.4 billion in 2026. The report, “Are Your CPaaS Revenues Under Threat?”, shows that despite this estimated rise, over a quarter of respondents believe that they are not susceptible to losing revenues to fraud or platform inefficiencies.
Mobilesquared conducted a survey of 75 CPaaS providers and mobile operators on behalf of XConnect. XConnect’s goal was to establish an understanding of the biggest barriers to growth for CPaaS providers and identify future revenue trends. Respondents were located across the Globe.
According to the research, voice is the channel expected to experience the greatest threat from fraudulent practices and platform inefficiencies, accounting for 34% of total fraud in 2022, and 39% by 2026. Termination rate charges were identified as the biggest threat to voice traffic, followed by traffic inflation. Around one-quarter of respondents also identified the supplementary threats of information accuracy and premium rate call back.
“The CPaaS industry is a rapidly expanding market that holds many opportunities and challenges for service providers. Over recent years, we’ve seen an increase in threats to omnichannel revenue as robocalling and termination charges affect more businesses than ever before,” said Tim Ward, VP Number Information Services, at XConnect. “This is driving the need for greater number intelligence services for CPaaS providers. It is critical that they understand the risk to revenue and have the solutions in place to tackle potential business disruptions and deliver better communications.”
The research also revealed that consolidation will play a key role in the growth of CPaaS in the coming years. The biggest business challenge facing CPaaS providers is service integration followed by platform integration.
“As digitalisation becomes more far reaching, the changing needs of modern consumers are pushing service providers to innovate and integrate their service offerings. The research shows that traditional voice and messaging service providers need to be ready to enhance their offerings to drive growth in CPaaS,” said Nick Lane, Chief Insight Analyst & Founder, Mobilesquared. “Today’s communications market is ready for evolution. To successfully capture the huge opportunity in omnichannel, service providers must embrace diversity with their end users in mind.”
Mobilesquared predicts that voice will be one of the fastest growing CPaaS channels, with the channel attributing $4 billion to CPaaS revenues in 2022, and $9.5 billion by 2026. Overall, it expects CPaaS to generate revenues of $29.7 billion in 2022, rising to $52.8 billion in 2026.
Download the full report, “Are Your CPaaS Revenues Under Threat?”, here.
XConnect, a wholly owned subsidiary of Somos Inc, consolidates, maintains and delivers trusted telephone number intelligence to world leading telecommunication service providers. It processes information from hundreds of different global datasets and ensures that customers solve routing, validation and fraud challenges in real time.
XConnect’s Number Information Services are used for voice and messaging routing, fraud protection and to identify and validate insights. They also support the deployment and evolution of next-generation communications, such as VoLTE and RCS.
Its service is accessed through its global distributed hybrid cloud platform using simple, secure, scalable real-time protocols and APIs.
Learn more: https://www.xconnect.net/
Mobilesquared’s vision since our launch in 2007 has been to deliver the very best independent mobile market intelligence to our clients.
We are now the established #1 global authority on business messaging and CPaaS, with our data shaping business plans, strategy, and customer engagement modelling, for some of the world’s leading brands, mobile operators, and messaging providers.
Learn more: mobilesquared.co.uk