Brexit, Will It Impact A2P SMS?

 In Operator News

BrexitBrexit is one of the trending topics both in sports and business press. Here we will focus on UK leaving the EU and not England leaving the UEFA Euro 2016.

It’s still very much an open question when UK will leave. They need to apply and there needs to be negotiations on the new terms between EU and the soon external party. The actual exit process hasn’t even begun, as no request to leave has been submitted. But the general effect is that UK will no longer be part of the inner market and EU law will not apply.

A lot has already been written on the telecom dimension that is worth reading. I would especially point you to these two articles:

ROCCO on roaming

Mobile world Live – general reflection on operators

A very brief summary on the effect of Brexit on the A2P market is that there will be no apparent change.

Legal and regulatory

  • International termination of text messages is not a regulated market, which means that unlike roaming, there will be no regulatory framework that changes. It’s not regulated by either the sending or the receiving jurisdiction.
  • It’s of course possible and likely, that national rates change as they are no longer governed by EU, and this could then have knock-on effects on the international rates. The assumption must be that regulating the wholesale markets, that are natural monopolies, is done for the benefit of the market and the customers in that market, and this doesn’t change following Brexit. Ofcom, the communications regulator in the UK,  is not deemed to have any reason to change what’s already in place.

Currency

Brexit is not involving any exit from the common currency, as would be the case if one of the EMU countries left. Trading between UK and the rest of the world already today means a currency risk. Naturally, fluctuation of currencies is directly affecting the price so if we see the GBP change as an effect, then this will have knock on effect on the A2P price to and from the UK.

Conclusion

The conclusion is that it’s highly unlikely that we will see any change on the A2P market, whether it’s to, from or even inside UK as an effect of Brexit.