WhatsApp Is Digging Its Own Grave

whatsapp telecom

Meta Platforms Inc. has Initiated a new operation, giving it absolute power over Mobile Network Operators’ (MNO) revenue by introducing WhatsApp as a key channel to share one-time passwords (OTP), putting the SMS’ role and revenue generation in this process at an uncertain halt. And by default, that of telcos and their local and international application-to-person (A2P) SMS operations. This could very well create an intensified feud in the WhatsApp telecom scene on all fronts.

In the past couple of years, Big Tech companies, and Meta taking the lead, have come to dominate not only their segments globally but also those of MNOs.

Now, Meta Platforms Inc. is removing telcos from the loop and putting itself right on the front lines.

In addition to the battle for revenue between mobile network operators and Big Tech companies, the importance of confidentiality cannot be ignored. Other OTTs and international enterprises could expose their users’ data to great risks, making it essential to prioritize protecting privacy in any business operation, above anything else.

Operators Need to Defend What Is Rightfully Theirs

The multi-billion Big Tech giant would benefit from billions of dollars in revenue while operators see their revenue flow diminish, to not almost zero revenue but definitively zero revenue.

This is another attempt from Meta Platforms Inc. to monopolize yet another market it had no control over, extending its dominance over the market, after destroying the Voice Calls business (both local and international) and Peer-to-Peer messaging for telecom service providers seems that A2P SMS is next.

Mobile operators will not allow the OTTs to take over the A2P SMS revenue stream, as they already have engagements and contracts to be respected with their partners. Those aggregator partners have already prepaid the Mobile Operators in advance for the forecasted yearly A2P SMS, valuating in millions of dollars. So, it’s within the Mobile Operators’ responsibility to protect this engagement, or else it will be considered a contract breach.

Take A Stand!

Meta Platforms Inc. has endlessly taken advantage of its power by imposing even more market dominance by overlapping its offerings with those of telcos and jeopardizing their revenues. It is depriving MNOs from a big source of income. They are positioning themselves at the front line of fighting with MNOs. In the end, both the OTT and the MNOs are commercial companies aiming to generate profit and revenues.

So, the time has come for MNOs to rise and take necessary measures to stop this internet giant’s power trip, immediately!

Some MNOs have launched a mission to take over control of what is rightfully theirs by getting ready to start charging WhatsApp a cost of almost 3 USD for its own OTP SMS going their network. By setting such a price, operators will be trying to compensate for the losses encountered by OTPs going through the WhatsApp channel.

Some other MNOs are even considering blocking the WhatsApp application completely on their network in case this OTP API continues. As per their analysis, users have a tendency to shift to another chatting application in case WhatsApp is not available, as they have monitored this shift several times when the messaging platform faced technical outages.

There are a lot of countries that blocked WhatsApp Calls on their networks like Jordan, KSA, United Arab Emirates, etc., as a stand from the regulator to protect their Mobile Network’s incoming revenues from voice calls, and the same can be replicated now to protect the A2P SMS revenues.

In summary, Mobile Operators will take a stand, whether commercial or technical, to protect their A2P incoming revenues.

Inside Telecom provides you with an extensive list of content covering all aspects of the tech industry. Keep an eye on our Operators section to stay informed and up-to-date with our daily articles.