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New Report Predicts Growth in RCS Users to Drive Business for MNOs

New Report Predicts Growth in RCS Users to Drive Business for MNOs

  • RCS users to grow 294% by 2024, driving new revenue for mobile operators
  • New report from Mobilesquared and Interop Technologies indicates that MNOs stand to gain a 240% revenue uplift over the forecast period by launching a native RCS solution

Rich messaging is becoming a key platform connecting brands with consumers, joining the list of mainstream marketing channels alongside TV, the internet, and social media, according to the findings of a new report by business messaging intelligence experts, Mobilesquared. By the end of 2024 there will be more than 3 billion RCS users, representing an unparalleled growth rate of 294%. This high rate of growth is set to position RCS as the largest enhanced messaging platform globally and provide new revenue opportunities for mobile operators.

The report, Safeguarding Revenue from A2P Messaging, published by Mobilesquared in partnership with Interop Technologies, highlights how RCS’ growth will help operators remain at the centre of mobile messaging.

The only business messaging channel currently generating sizeable revenue anywhere in the world remains A2P SMS. Brands spent $17.9 billion on the channel in 2020, and that will grow to $18.94 billion in 2021. Mobile operators hold a very dominant position when it comes to business messaging for now. However, they need to safeguard future messaging revenues by consolidating legacy messaging and migrating subscribers to an RCS messaging platform to capitalize on its continued growth and next-gen technology synergies.

As the official 5G messaging service, RCS is expected to become an essential vehicle for generating future messaging revenues for mobile operators. Consumers are already reliant on rich messaging, brands want it, and mobile operators need to deliver it. Based on existing RCS and MaaP deployment plans from around the world, Mobilesquared forecasts that RCS will generate revenues of $8.3 billion by 2024 from the traditional telco A2P SMS model. Delaying an RCS launch will only risk mobile operators’ ability to generate new messaging revenue and their position in the channel.

“Mobile operators need to take a holistic look at their A2P strategy to ensure current revenues generated from SMS aren’t being left on the table,” said Jim Dwyer, Senior Vice President of Corporate Development and Product Management at Interop Technologies. “At the same time, operators must also prepare their messaging networks for the predicted eruption of new revenue opportunities that will be delivered through RCS via conversational commerce interactions between brands and consumers.”

Nick Lane, Chief Insight Analyst, Mobilesquared, said: “Over 3 billion people use rich messaging, so if the mobile operators want to ensure their platforms remain relevant to their customers, they must evolve SMS into RCS. SMS has served them well, and in an A2P environment will continue to do so, but the level of engagement on rich messaging takes the opportunity to a different stratospheric level altogether.”

Having a robust messaging platform is now seen as a vital component in mobile operator competitiveness, to such an extent that it can improve subscriber quality of experience and also reduce churn. By developing a native RCS offering to subscribers, it ensures that mobile operators remain at the centre of the next major platform, both for consumers and for brands.

Source: Mobilesquared and Interop Technologies media announcement

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