Background on Altán and A2P Text Message Companies
Altán Redes, a Mexican telecommunications operator, is reportedly hindering businesses that specialize in A2P (Application-to-Person) text message services. These companies provide crucial authentication for consumer transactions and fraud prevention. Japifon, one such company, has raised concerns about Altán’s actions.
Altán’s Alleged Obstructive Measures
According to Japifon, Altán prioritizes other types of messaging and telecommunications services over A2P text messages. This prioritization, combined with labeling A2P messages as spam, negatively affects the reputation of these brands among business partners and end-users.
Moreover, Altán has been accused of not adhering to interconnection agreements regulated by the Mexican Federal Telecommunications Institute (IFT).
Impact on A2P Text Message Businesses
A2P text messages are short, automated messages used for consumer identity verification and online purchase confirmations. In Mexico, these messages have gained popularity over traditional P2P (Person-to-Person) texts.
Mexico sees 1.2 billion A2P text messages monthly for transaction authentication and identity verification. The growing demand has led to tensions between A2P businesses like Japifon and traditional telecom companies.
Japifon acknowledges that Telefónica Movistar and AT&T also obstructed A2P businesses in the past, but both have since recognized the market competition posed by companies like Japifon.
Reasons Behind Altán’s Actions
Traditional cellular operators like Altán may be resisting A2P businesses due to the potential loss of revenue as new companies enter the market. Cable providers have also seen A2P messaging as a way to monetize their investments.
Freddy Rojas, Japifon’s CEO, is hopeful that the IFT and its successor, the Agencia de Transformación Digital y Telecomunicaciones, will address these commercial practices.
IFT’s Involvement
The IFT has held seven meetings in the past year and a half to discuss disputes related to A2P messaging services. On June 14, 2024, the IFT initiated an investigation into potential monopolistic practices in the A2P messaging termination traffic business. The investigation, AI/DE-002-2024, was filed by the IFT.
Key Questions and Answers
- What are A2P text messages? A2P (Application-to-Person) text messages are automated, short messages used for consumer identity verification and online purchase confirmations.
- Who is Altán Redes? Altán Redes is a Mexican telecommunications operator accused of obstructing A2P text message businesses.
- Why is Japifon relevant? Japifon is an A2P text message company experiencing obstruction from Altán and other traditional telecom operators.
- What is the IFT’s role? The Instituto Federal de Telecomunicaciones (IFT) is Mexico’s telecommunications regulatory body investigating potential monopolistic practices in A2P messaging services.
