Jupiter Predicts That Operators Are Losing $1.3B to Undetected Flash Calls

By Tracey E. Schelmetic April 24, 2023

Flash call verification is frequently used as a cost-effective authentication solution and tends to be more highly utilized in countries where SMS and mobile phone calls are more expensive. A flash call is a near-instant dropped call that is automatically placed to a mobile number, usually as part of an authentication process known as flash call verification. By definition, there is no termination fee charge for the call as it is not answered and is simply recorded as a missed call in the phone’s log.

An inability to detect flash calling traffic can lead to diminishing SMS business revenue for operators, as enterprises use flash calling over highly lucrative SMS channels monetized by operators. In fact, a new study by Jupiter Research has found that operators will lose $1.3 billion to undetected flash calls cumulatively between 2023 and 2027. The report predicts that over 90 percent of flash calling traffic will be undetected by network operators in 2023. However, this figure is expected to drop to 45 percent by 2026; driven by the increasing implementation of detection services offered by third-party firewall providers.

The study, titled, “Flash Calling: Strategies, Opportunities & Market Forecasts 2023-2027,” predicts that as voice firewalls are increasingly adopted, operators’ losses to undetected flash calling will begin to experience year-on-year declines from 2026, as more traffic is identified and can be monetized by operators. It forecasts that operators’ revenue from flash calling will reach $450 million globally by 2027; surpassing operators’ losses to unidentified flash calling traffic for the first time.

The report provides a comprehensive evaluation of the growth prospects for the flash calling market and authentication process. It offers strategic recommendations for blocking, detecting and monetizing flash calling traffic, including potential disruption to A2P SMS business messaging traffic, as well as potential threat to network operators. It features comprehensive five-year forecasts for flash calling traffic, as well as an evaluation of the impact of flash call verification for both operators and OTT apps, including key findings for blocked flash calling traffic, monetized flash calling traffic and undetected flash calling traffic.

Edited by Greg Tavarez
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