How Flash Calls Are Impacting Telecom Operators and Revenue Strategies

What Are Flash Calls and Why Are They a Growing Concern?

In the blink of an eye, a missed call can disappear from a user’s screen. However, for telecom operators, this seemingly benign event represents a growing threat to revenue streams. Flash calls, often undetected by conventional telecom systems, are at the heart of this disruption. According to a recent Juniper Research report, flash calls could lead to over $1.3 billion in revenue losses between 2023 and 2027. For Communication Service Providers (CSPs), these brief, machine-generated calls bypass traditional SMS authentication methods, creating a massive and silent revenue drain.

So, what are flash calls? Unlike SMS-based one-time passwords (OTPs) used for user verification, flash calls work by placing an ultra-short, automated call to a user’s device. The receiving system then matches the last few digits of the incoming call to confirm the user’s identity. No SMS is sent or answered, which offers Over-the-Top (OTT) service providers advantages like reduced authentication costs and faster onboarding. However, for CSPs, these events go unbilled, accelerating financial losses.

The Scale of the Flash Call Problem

Flash calls are increasingly difficult for telecom operators to detect, blending seamlessly into regular voice traffic. Traditional fraud detection systems struggle to identify them as they bypass standard billing mechanisms. In 2023, flash calls accounted for a rapid 47% year-on-year growth in mobile verification volumes, with over 3.5 billion events recorded globally. Data indicates that 42% of organizations have already adopted flash calls, with major tech companies leaning toward this cost-effective and user-friendly verification method.

The rapid adoption of flash calls indicates how lucrative they are for OTT platforms, but this comes at the expense of CSPs. Operators can lose millions of dollars annually as the number of flash calls continues to grow unchecked. The problem is compounded further because these calls are invisible in Call Detail Records (CDRs), leaving operators with little clarity on how to address them. Without action, telecom revenue streams are set to face even more substantial erosion.

From Threat to Opportunity: Monetizing Flash Calls

While flash calls pose a significant challenge, they also open the door to revenue generation when managed strategically. Operators equipped with AI-driven signaling analytics can gain insights into flash call traffic, detect bypass events, and develop automated billing frameworks. By aligning flash call monetization with their existing SMS A2P frameworks, CSPs can reclaim lost revenue and provide value-added services to enterprises using flash call authentication.

For example, one leading telecom operator successfully tackled flash call-related revenue leakage by collaborating with Subex’s Signaling Risk Intelligence solution. Using advanced fraud management tools, they identified and monetized flash call activity, transforming it into a profitable revenue stream in just six months. This highlights the potential for CSPs to not only recover losses but also lead the way in secure digital authentication services.

The Strategic Path Forward for Telcos

To combat flash call-related challenges effectively, telecom operators must take a proactive approach. Investing in cutting-edge AI and real-time signaling analytics can help distinguish flash calls from legitimate traffic and bring them into billing systems. Additionally, operators should foster collaborations with OTT platforms to establish monetization agreements that ensure fair usage, resembling interconnect arrangements for SMS.

Regulators also play a critical role in standardizing authentication channels so that operators can maintain control. With the adoption of flash calls expected to continue rising, the question isn’t whether flash calls will impact CSP revenues—it’s about taking action before those revenues are lost completely. By addressing the issue now, telecom operators can stop uncontrolled revenue leakage while transforming the challenge into a lucrative opportunity.