Thursday, 24 May 2018 00:23

Rich Communication Services messaging revenue to explode in next 5 years: Juniper

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Rich Communication Services messaging revenue to explode in next 5 years: Juniper Image courtesy of Kromkrathog at FreeDigitalPhotos.net

Global revenues from Rich Communication Services messaging will exceed US$9 billion by 2022, up from an estimated $126 million in 2018.

The massive increase in revenues of RCS — the communication protocol between mobile-telephone carriers and between phone and carrier — is predicted by Juniper Research in a report that found operators’ RCS revenue potential was firmly rooted in A2P (Application to Person) services, including automated messages from companies to customers.

Juniper’s report — Mobile Messaging: Operator Strategies & Vendor Opportunities 2018-2022 forecasts that A2P RCS will bridge the gap between the ubiquity of SMS and the enhanced experience that OTT applications bring. It found that over 90% of RCS traffic will be A2P by 2022, as companies benefit from rich media functionality and large reach to enhance engagement levels.

However, Juniper argued that initial pricing and attractive business models would play a pivotal role in encouraging the early adoption of the technology.

Juniper urged operators to initially implement an event-based model involving a simple charge per delivered message to ease the transition from SMS to RCS. Juniper forecasts that global RCS users will near two billion by 2022.

Research author Sam Barker said, “Operators’ support for RCS is growing as the revenue potential becomes apparent. Whilst the technology has been unsuccessful as a P2P messaging channel, its capabilities as an A2P service will prove popular with advertisers”.

Juniper recommended that operators must consider fair usage policies while implementing new pricing models.

“For example, a model based on the number of RCS interactions would necessitate such a policy to guard against straining operator networks,” Juniper says.

The research predicted that AI would be needed to facilitate conversational communication that minimises response times.

Until then, it suggested that APIs support interactive media-rich content to foster confidence amongst mobile users. Additionally, it urged platforms to include fall back to SMS to ensure message termination.


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Peter Dinham

Peter Dinham - retired in 2020. He is a veteran journalist and corporate communications consultant. He has worked as a journalist in all forms of media – newspapers/magazines, radio, television, press agency and now, online – including with the Canberra Times, The Examiner (Tasmania), the ABC and AAP-Reuters. As a freelance journalist he also had articles published in Australian and overseas magazines. He worked in the corporate communications/public relations sector, in-house with an airline, and as a senior executive in Australia of the world’s largest communications consultancy, Burson-Marsteller. He also ran his own communications consultancy and was a co-founder in Australia of the global photographic agency, the Image Bank (now Getty Images).

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