Unlocking Revenue and Boosting Margins: Strategies for African Telecom Providers

The African telecom industry is changing fast. For over 24 years, LANCK Telecom has helped service providers across the continent adapt and thrive. Operating in over 190 countries and partnering with more than 1,500 global operators, we provide flexible solutions, advanced technology, and a deep understanding of local markets. This article explores key challenges in Africa’s telecom market and how LANCK Telecom can help your business overcome obstacles and drive success.

Challenges Africa’s Telecom Market

In this rapidly evolving region, service providers, aggregators, and platform owners need to navigate rising costs, fraud risks, and changing communication preferences while staying competitive and driving growth. Below, we explore the most pressing issues.

Rising Voice Challenges

The voice segment in Africa faces its own challenges, from pricing issues to fraud and poor connection quality.

Lack of Route Optimization

The lack of efficient route optimization results in higher costs for service providers. Implementing smart tools to optimize routes is crucial for reducing expenses and maintaining competitiveness.

Connection Quality Issues

A low connection quality drives customers away, resulting in lost revenue and damaged trust. Providers should invest in advanced systems to ensure stable and reliable connections for users.

OTT Regulations Shifting Preferences

Over-the-Top (OTT) platforms like WhatsApp are changing the voice sector. Free calls over Wi-Fi reduce reliance on traditional voice services. However, in some countries, such as the UAE, OTT platforms face restrictions, showing the diverse regulatory environment providers are expected to navigate.

Leakage in Voice and SMS Traffic

Leakages in voice and SMS traffic are a growing concern in the region. One key issue is the shift of traffic from traditional SMS to emerging platforms like RCS (Rich Communication Services). This transition often leads to revenue loss if not managed effectively. Additionally, fraud remains a persistent challenge, further complicating operations.

Origin-Based Rates (OBR)

Origin-Based Rates (OBR) create unpredictable costs, ranging from $0.0021 to $0.3521, and enable fraud like A-number manipulation and refiling. Tackling OBR requires advanced routing, robust billing, and solutions for challenges like Mobile Number Portability (MNP). Initially seen in Europe, OBR is now impacting Africa, demanding swift, proactive action.

Voice Fraud

Fraud in voice services is a serious issue, and Africa’s telecom sector is one of the hardest hit. Fraudsters use various tactics to exploit service providers and their enterprise customers:

PBX Hacking: Fraudsters access private branch exchange systems to steal inbound and outbound traffic, causing significant financial losses.
Grey Routes: Almost half of international inbound traffic in Africa flows through unauthorized channels, leading to revenue leaks.
Smart FAS (Call Stretching): This method artificially extends call durations, inflating costs for both providers and users.
Wangiri 2.0: This advanced fraud targets enterprises, where fraudsters use fake numbers to prompt costly return calls.

These schemes not only cause financial losses but also damage trust between providers and their customers. To combat fraud, service providers and platform owners can invest in real-time detection systems and expert teams, enabling them to protect both revenue and reputation through proactive measures.

Messaging: Increased Costs, Evolving Preferences

The messaging industry in Africa is also facing a period of rapid change and increasing challenges.

Rising Costs of A2P SMS

According to MobileSquared, the cost of sending international A2P SMS has nearly doubled since 2021, increasing from $0.033 to $0.0646. During this period, 90% of mobile operators raised their fees, with 36.4% significantly raising rates and 3.9% imposing hikes of over 500%. These rising costs push local providers to find ways to stay competitive while managing escalating expenses.

Shift to OTT Platforms

Enterprise clients are increasingly turning to cost-effective Over-the-Top (OTT) platforms such as WhatsApp and Viber. As reported by Juniper Research, these platforms are projected to handle 375 billion messages annually by 2028, up from 100 billion in 2023. This transition is reshaping traditional SMS traffic, prompting service providers to adapt quickly.

The Impact of AIT Fraud

Fraudulent activities like Artificial Inflation of Traffic (AIT) are further complicating the sector. MobileSquared has shown that, in 2023 alone, AIT fraud caused losses exceeding $120 million in Africa, leading to pricing disputes and significant revenue disruptions. Innovative solutions are essential for securing messaging channels and preserving trust in the industry.

Unlocking Success: LANCK Telecom’s Insights and Solutions

Africa’s telecom landscape isn’t just a challenge—it’s an invitation to grow. Service providers that embrace new ideas and stay flexible can turn today’s problems into future opportunities. This section highlights key insights and solutions to help you unlock revenue and boost margins.

Voice and SMS as Critical Communication Сhannels

Voice and SMS remain essential in Africa’s telecom industry, even as digital alternatives grow. In regions where internet infrastructure and VoLTE are still developing, voice calls are the most reliable way to stay connected. SMS remains vital, trusted for notifications and verifications, with a reach of up to 80% of the population. In 2024, as reported by Techloy, feature phones made up 55% of mobile sales in Africa, underscoring the ongoing relevance of these channels.

How LANCK Telecom Supports Voice and SMS Needs

LANCK Telecom is uniquely positioned to help service providers capitalize on the importance of voice and SMS. Our African network is supported by 49 direct SMS interconnections and 89 direct voice interconnections. These connections ensure reliable, high-quality communication even in regions with challenging infrastructure.

At the heart of our operations is quality control. Our in-house OSS and BSS systems allow our Quality Control (QC) team to continuously monitor traffic and fix problems quickly—whether it’s a codec mismatch, an equipment issue, or another technical challenge. This ensures our clients receive dependable, top-quality service that supports their operational goals.

Even seemingly clean traffic can contain hidden issues, such as bad profiles, which may not be immediately evident. Our intelligent technology and hands-on expertise help identify these subtle anomalies and resolve them before they escalate. By ensuring traffic quality and proactively managing risks, we protect both your profits and your reputation.

Opportunities in Underserved Regions

Smaller and underserved regions in Africa, often overshadowed by Nigeria, Kenya, and South Africa, offer valuable opportunities for growth. With less competition, these regions can provide better profit margins and lucrative prospects. To succeed, service providers could tailor pricing and routing strategies to fit specific local conditions, ensuring competitiveness, maximizing profitability, and turning these regions into key growth drivers.

Unlocking Potential in Niche Markets with LANCK Telecom

LANCK Telecom supports service providers in accessing these high-potential regions with unmatched flexibility and reliability, even in regions with limited infrastructure. Operating in 37 African countries, we combine global expertise with local knowledge to meet diverse communication needs, ensuring our partners can confidently expand.

To further address the unique needs of service providers, aggregators, and platform owners, LANCK Telecom offers flexible billing options. These include tier-based models focused on volumes and delivery-based billing tailored for guaranteed reach, paired with special rates for specific sender IDs. Additionally, our route optimization ensures better traffic efficiency, helping service providers and platform owners reduce costs, improve margins, and deliver competitive offerings, even in smaller regions.

Driving Engagement through Voice and Messaging Integration

Combining voice and messaging enables service providers in Africa to offer efficient communication solutions to their enterprise customers. A well-planned delivery strategy ensures messages reach customers effectively.

LANCK Telecom’s Synergy of Voice and Messaging

LANCK Telecom integrates voice and messaging into a unified telecom solution, enabling service providers, aggregators, and platform owners to optimize their communication offerings for enterprise customers. To keep pace with Africa’s telecom growth, we offer advanced communication channels, including RCS, WhatsApp, Viber, Two-Way SMS, and Voice OTPs. These solutions enable our partners to deliver competitive and reliable services while maintaining cost-efficiency.

Our cascading delivery approach ensures messages are routed effectively, starting with more affordable channels, such as voice or OTT, and transitioning to SMS when necessary. This strategy improves conversion rates and allows service providers to meet diverse customer preferences seamlessly.

LANCK Telecom’s Next-Gen Anti-Fraud Technology Enables Secure Operations

LANCK Telecom provides state-of-the-art fraud prevention solutions designed to secure operations and protect revenue. Using AI-powered tools and real-time monitoring, we identify and stop fraudulent activities like Wangiri scams, PBX hacking, and AIT with 99.995% accuracy.

Partner with LANCK Telecom

LANCK Telecom is the trusted partner you need to navigate today’s telecom challenges and seize tomorrow’s opportunities. With a proven history of driving growth and delivering innovative solutions, we support service providers, aggregators, and platform owners in optimizing operations, enhancing efficiency, and unlocking new revenue streams.

By combining cutting-edge technology, flexible strategies, and deep expertise in local and global markets, LANCK Telecom ensures your success in an ever-evolving telecom space.

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