SMS still serves as number one for global communities
Tom Veldman, Director Product Marketing, Acision
It was announced last month that over one billion messages are being sent in a single day via WhatsApp. Such OTT services are increasingly being cited as spearheading the next wave of mobile messaging communications and in turn putting pressure on traditional SMS. Despite these new messaging services increasing in popularity, SMS still serves the needs of a global community of over 5 billion mobile subscribers compared with the multitude of fragmented OTT communities which are restricted to smartphone users equipped with the right clients. Over 6 trillion SMS messages are sent globally per year. If you calculate that to traffic per day, this is 15 billion on average, and peak days such as New Year’s may well see SMS volumes increase to 100 billion.
While the rapid introduction of OTT messaging services has brought innovation in messaging capabilities and attractive charging models, they are also fundamentally fragmenting the messaging landscape. Recent statistics from comScore indicated that smartphone penetration in Europe is currently less than 40 per cent, and even less in other parts of the world. This, and the lack of interoperability between OTT services, means that such services are isolating the majority of the market.
The ubiquity of SMS, on the other hand, offers a number of unique advantages. Firstly, a reach of more than 5 billion people globally across any brand, network and device type, even without 3G. Also, the telco grade SMS infrastructure deployed around the globe ensures uncompromised quality and availability. For businesses, this has the unique value of reaching everybody as well as being the most secure and reliable method of communication, making it highly suitable for enterprise and machine-to-machine communications. What’s more is that SMS is still evolving with premium, personalised service enhancements for the consumer and enterprise being offered from within the cloud. The rich communication services being introduced by mobile operators, such as RCS-e, are building on these strengths, leveraging SMS to ensure interoperability with all mobile users, providing a reach of 5 billion mobile users from day 1 of introducing these new services., RCS-e incorporates OTT-esque features, such as multi-media file transfer and threaded conversation views, providing mobile operators a service evolution which will enable them to provide the best possible mobile messaging experience to all users.
Have your say and submit a comment below.
06 December 2011 by Tom Veldman
Completely agree with Bernie's comments!Bottom line is that the OTT chat services have their niches, but address a different market need than SMS, or maybe a subset. Mobile operators now have the opportunity to introduce rich, chat-like services,at price points that match the value offered to consumers. Some of the trump cards operators hold are consumer trust and universal service reach.
23 November 2011 by Bernie
The customer is always right what ever vendors say .One could also argue Facebook only reaches 10% of the global population. But that does not stop anybody from enjoying it as long as their friends are there. Furthermore, Whatsapp is free, who wants to pay for RCS?
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