In an exclusive interview with Monty Mobile CEO, Hassan Mansour, we address the billion-dollar question facing the telecom industry today: why is the A2P SMS market declining despite sustained demand for authentication traffic? Mansour argues that the issue is not technology, nor user behavior, but the way operators structure tenders, chase unrealistic revenue commitments, and misalign pricing with global OTT standards.
Q: Many operators believe the A2P SMS market is declining because of technology shifts. Do you agree?
No, I don’t.
The A2P SMS market is not declining because of technology. It is not declining because users stopped requesting OTPs. It is declining because of how operators structure their tenders and commitments.
Today, many operators structure their tenders around one central question: Who can bring me more traffic? That is the fundamental mistake.
And that raises the billion-dollar question: How can anyone bring you more OTP traffic than what already exists?
Let me simplify it.
If your current vendor is already managing your gateway properly, with zero leakages, delivering all global verification and OTT traffic, and generating no complaints because your subscribers are receiving their messages— and a new bidder, during a contract renewal tender, promises to bring you more traffic — how?
Where will this additional traffic come from?
Who will suddenly start generating more authentications?
How can anyone create volume beyond real user activity?
That is the billion-dollar question.
OTP traffic is not promotional bulk traffic. It is not something you push to subscribers. It is generated by user behavior.
- A user downloads an app.
- A user logs into a banking platform.
- A user requests authentication.
- The system sends an OTP.
That’s the process.
No aggregator can force subscribers to request more OTPs. No one can instruct users to trigger extra authentications to increase volume.
So, when an operator asks in a tender, “Bring me higher volumes than what I currently receive,” the honest response is: how?
If someone truly knows how to increase genuine OTP demand beyond real user activity and legitimate ways, they deserve one billion dollars. Because it simply cannot be done.
Q: If traffic cannot be artificially increased, what actually drives OTP growth?
There are only two legitimate drivers of A2P OTP growth:
Either you grow your subscriber base, or more applications choose SMS as their authentication channel.
That’s it.
Other than that, nobody can create traffic out of thin air.
If your current vendor delivers all real OTP traffic, ensures clean routing, prevents leakages, generates no subscriber complaints, and covers all major apps — then what exactly are you tendering for?
More volume? From where?
This is where many operators miscalculate.
Q: What happens when operators launch aggressive tenders based on unrealistic commitments?
We’ve seen the pattern repeatedly.
Operators increase tariffs. They demand commitments based on unrealistic projections. They select vendors promising higher volumes.
The consequences are immediate.
Major apps stop sending traffic. OTTs shift to WhatsApp or alternative verification methods. Missed-call authentication increases. SMS volumes drop — sometimes 30%, 40%, even 50%. Users complain they are not receiving OTPs. And ultimately, trust erodes.
Every operator can review their data from three years ago until today. The decline is visible.
Yet many continue launching new tenders.
This is not strategy. It is self-inflicted damage.
Q: What is the broader impact when global apps reduce OTP traffic to a destination?
When major applications reduce or stop sending OTP traffic, the impact goes beyond SMS revenue.
Subscribers struggle to authenticate. User frustration increases. Trust in the network declines. App engagement drops. Data usage declines. Subscription-based services are affected.
You are not only losing SMS revenue. You are weakening your participation in the digital ecosystem.
When SMS becomes too expensive, OTP providers control the market. They decide where to send traffic. If rates are too high, they simply stop sending.
At that point, the operator no longer controls volume. And the damage compounds over time.
Q: What should operators actually evaluate in a tender?
A proper tender should not begin with the question, “How much traffic can you bring me?” That is the wrong starting point.
The real questions are different.
Is the aggregator a credible Tier 1 player? Do they have direct relationships with major global OTP providers? Can they demonstrate real experience managing operator gateways? Do they have strong firewall management and clear leakage prevention controls? Are their SLAs transparent and realistic? Do they have solid financial standing and reliable payment practices?
These are the factors that matter.
A tender should focus on stability, operational discipline, credibility, and sustainable pricing. Not on projections that look impressive but have no practical basis.
Q: How have unrealistic commitments affected vendors?
Many companies entered high-volume commitments to win tenders. When actual volumes did not match projections, they were forced to extend contracts, renegotiate terms, or absorb financial losses.
This is not a gambling business.
It is not sustainable to enter commitments without realistic volume logic.
Today, responsible players are no longer eager to sign aggressive commitments. The industry has learned that chasing unrealistic targets damages everyone — operators, vendors, and ultimately subscribers.
Q: Are operators now returning to experienced Tier 1 aggregators after the failure of aggressive overcommitment models?
Yes.
Across several markets, we are seeing operators come back, some after losing 40–50% of their SMS traffic.
The reality becomes very clear when volumes drop that sharply. At that point, the focus changes. It is no longer about promises. It is about fixing what was damaged.
They are asking for proper gateway management. They want traffic rebuilt in a structured way. They want relationships with major OTP senders restored. Most importantly, they want stability; without aggressive commitments that don’t reflect real demand.
There is now a better understanding that volume cannot be forced. It has to be protected, managed carefully, and rebuilt through trust and pricing that makes sense for everyone involved.
Q: What is your final message to operators reassessing their A2P strategy?
My final message is simple: it is time for operators to wake up.
Many markets have lost close to 50% of their SMS traffic in recent years. That is not a coincidence. It means applications, especially new digital services, have stopped sending through SMS because pricing became unrealistic.
When SMS fees are too high, applications shift to other channels. And when that happens, you don’t just lose SMS revenue. You lose data usage, user engagement, and your role in the broader digital ecosystem.
Tenders must focus on management and strategy, not promised volumes. Operators should work with credible Tier 1 partners; those with trusted relationships and, strong firewall control, and the expertise to rebuild traffic properly.
About Monty Mobile
For more than two decades, Monty Mobile has been a global leader in telecom innovation, partnering with operators, global enterprises, hyperscalers and financial institutions to power connectivity, drive forward-looking technologies, and scale digital transformation. Today, the company’s capabilities are further strengthened by advanced AI-driven platforms that analyze data in real time, detect anomalies, and protect operators against emerging threats with exceptional precision. Beyond protection, Monty Mobile also plays a pivotal role in connectivity and monetization, enabling operators to optimize traffic, protect margins, and fully capitalize on the value of their network infrastructure
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