NEXT-GENERATION MOBILE MESSAGING NEEDS &

ARCHITECTURES

Course Faculty: Mrs Yasmin Malik

Venue: IBA City Campus, Karachi

Course Start Date: Spring 2012 (Feb 1)

MIS553: Mobile Marketing Strategies

Limits of Legacy SMSCs

Current legacy SMSCs are built on the “store-and-forward” delivery model

These systems have been pushed to their limit and are falling behind in terms of cost, performance and operating efficiency

Store-and-forward: SMS message is routed initially to the SMSC where it is stored and then

forwarded Since 85-95% of SMS messages can now be delivered on the 1st

attempt, most of the initial processing that the SMSC does to store, query and forward messages is largely wasted

Architecture does not scale cost effectively Store-and-forward delivery causes latency (delay) and inefficiencies

Outdated hard-coded logic employed by SMSCs does not easily support new delivery models and the creation of advanced messaging systems

Next-Generation Mobile Messaging Needs

To remain relevant in the current world-wide data-centric usage of mobile services, Operators are looking at deploying new all-IP (Internet Protocol) based messaging services

This is so that they can remain relevant and secure future messaging-based revenues

Also: SMS is a circuit-switched service It has to be migrated to an IP-based service before it can be

supported by packet-switched networks This requires new delivery mechanisms to deliver SMS in the

LTE/IMS environments which are 4th Generation networks: (LTE = Long Term Evolution, an all IP-based network) (IMS = IP multimedia subsystem, an all IP-based network)

NOTE: more about LTE networks later in the course, but for now we will concentrate on SMS delivery

Legacy SMSC Network Architecture

Source: Adapted from Informa Telecoms

OAM = Operations, Admin & Maintenance STP = Signal Transfer Point(router that relays SS7 messages)

New Mobile Messaging Network Model

Source: Adapted from Informa Telecoms

The New Mobile Messaging Network can be deployed in conjunction with existing messaging infrastructureto grow capacity/capability or to create a complete End-to-End mobile messaging network

3 Significant Functionalities wrt SMS Marketing Delivery:

1. SMS Router: features First Delivery Attempt (FDA)2. SMS Store: to handle SMS traffic/bulk SMS surges during marketing campaigns3. SMS Ad Insertion: to facilitate “In-message” advertising via the Operator

The Problems This Will Help Overcome

From the technology point of view, the New Mobile Messaging Network model can help us overcome the following issues when carrying out SMS-based mobile marketing:

Straining of the network by increasing volumes of SMS traffic

Handling traffic spikes created by SMS bulk-load generators used for marketing campaigns

Leveraging existing SMS architecture to generate new revenue

Case Study 1: Reducing SMSC Storage Load

The Issue: Existing SMSC Infrastructure based

on store-and-forward technology, is being strained by increasing volumes of SMS traffic

All local messaging traffic must pass through the SMSC even though only 5-15% (max) of that traffic needs to actually stored for retry later

Most of the initial processing that the SMSC does to store, query and forward messages is largely unnecessary

Hence a way must be found to reduce the number of messages that have to be stored

And also to reduce costs by improving message-delivery efficiency

Is adding additional SMSCs the answer…?

No!

A Smarter Solution:

FDA = First Delivery Attempt via SMS Router

1. The SMS Router delivers the mobile-originatedMessage (MO) as soon as it arrives, bypassing the SMSC2. Placing the SMS Routers closer to the MSC balances the signaling load on the network

3. If the FDA cannot be completed, the message is sent to the SMSC for traditional store and forward with retry at a later stage

Source: Adapted from Informa Telecoms

Case Study 1: Reducing SMSC Storage Load

BENEFITS: The SMS Router’s FDA capability reduces the need to store

and forward messages and eases the load on SMSCs by as much as 85-95% eliminating capacity bottlenecks

Overall network performance is improved as it frees up capacity for existing SMSCs

The SMS Router can be configured for versatile and flexible routing rules on virtually any SMS parameter (sender, recipient, content)

Messages can originate from SS7 networks via an SMSC, MSC or STP or from an IP connection via an SMS application or cross-network gateway

Case Study 2: Bulk-SMS Application-Originated Traffic

The Issue: Existing SMSC Infrastructure is

being overloaded by increasing traffic loads generated from Bulk-SMS applications

Legacy SMSCs were originally designed to handle the relatively predictable traffic created by simple texting

They were not designed to handle the spikes created by SMS bulk-load generators used for marketing campaigns

Once an SMSC reaches full capacity, it cannot process any more messages which results in applications and subscribers receiving error messages, message retransmission and overload

QoS is difficult to maintain in such a scenario

Is adding additional SMSCs the answer…?

Possibly – but this is a costly and inefficient approach

A Smarter Solution:Using the SMS Store to Manage Application-Originated (AO) Traffic

1. The SMS Store handles the application-originatedtraffic again essentially bypassing the SMSC2. High-priority SMS traffic can be delivered in this manner by committing bandwidth to applications such as bulk messaging, hence improving QoS

Source: Adapted from Informa Telecoms

Case Study 3: Delivering Operator-originated Mobile Advertising

As we have seen, SMS popularity and usage is increasing but revenue per SMS is not

How can Operators leverage the existing SMS architecture to generate new revenue?

The Operator can take on the role of creating mobile advertising programs by inserting sponsored texts (branding, sports, news etc.) into mobile-terminated (MT) SMS messages

This is known as “In-message” SMS marketing Branded content can be added before (prologue) or after

(epilogue) the existing message Note the difference between short-code/opt-in and the

different types of Operator-driven SMS marketing In Operator-driven SMS marketing, the Operator can

collaborate with a brand on the strength of its profiling capabilities (e.g. Boots) or it can leverage the strength of its own brand by offering other brands the option of appending branded messages to Operator controlled messaging

In-message SMS Based Ads

In-message SMS has been an opportunity for many Operators over the last few years

The same phenomena is practised in Pakistan’s cellular market especially for the promotion of the MNOs own services/offerings/deals

It generates new revenue and increases customer loyalty

MNOs own a very unique asset: access to real-time demographic and behavioural data

Viewed by subs as VAS and by advertisers as “distinctively personalized and relevant communication” and valued as such

Unlike virtually every media from newspaper to Cable TV, MNOs have full control over their networks

They have the luxury of choosing which brands and content they carry

In-message SMS by Coke appended to e.g. Vodafone UK’s voice mail notification

Which is “The Brand?”

Examples of In-message SMS Closer to Home

U have subscribed to FortnightlySMS Package @ Rs 25 + T. Valid till 01/09/10. -----------------------------Dial karein 555 aurlatest ganey sunain @ 20 paisas/min + t

Ur Fortnightly SMSPackage has expired.Send SUB to 603 to renew ur subscription----------------------------Samait lain Mah-e-Ramzan ki Rahmatain786 subsribe karainaur Ramzan alerts aurBazariya lucky drawJeetain Hajj ki do returnTickets @ Rs 15/M

Ufone

Ufone/KFC

Your balance has fallenbelow Rs. 10-------------------------------------

Ufone-KFC Mazedar Deal!Sirf Ufone customers ke liye!Buy 1 Zinger Burger + drinkGet 1 Chicken Burger + drinkabsolutely free @ dine-in,Take-away and delivery

Case Study 3: Delivering Operator-originated Mobile Advertising

Source: Adapted from Informa Telecoms

1. The Operator can deploy an Advertising Insertion Center into MT SMS messages, adding epilogue or prologue branded messaging to existing service messages – text separators are included to differentiate between Operator original and brandedmessages

2. If required, by using subscriber profiles, the content can be targeted – but the option of sending out Bulk SMS for aparticular brand is also there e.g. nationwide or city-wide Ufone/KFC campaign

3. The Operator-managed Ad IC examines the MT to determine if texts needs to be inserted. If so, it selects the text to be inserted from a pool of active messages or a 3rd party ad server. Ad server’s inclusion at the Operator’s discretion provides another revenue generation opportunity for the Operator.

4. The message is transparently forwarded to the destination and acknowledgement of successful delivery is sent to the originated SMSC

5. Note the inclusion of the SMS Store: if delivery is unsuccessful, the SMS Store performs a retry

Case Study 3: Delivering Operator-originated Mobile Advertising

BENEFITS:

With its own Ad Insertion Centre, the Operator is able to:

Enhance customer loyalty with relevant and targeted campaigns that add value

Expand market opportunity Leverage the existing SMS infrastructure to generate new

revenue