SMS VAS Opportunities for Longer Term Revenues
2017.10.30   |   25 pages   |   Operations and Management

Author:
Robert Harrison


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Despite the overall decline in SMS revenues and usage, interest in A2P applications using SMS is growing, owing to its inherent ability to reach all mobile users, its reliability and its speed of delivery.  As organisations in both public and private sectors seek to improve efficiencies and customer experience through increased automation, use of SMS for a wide variety of applications including marketing, scheduling, tracking, confirmation, payments and authentication continues to increase.  Third party companies have developed APIs that provide an interface between user organisations’ systems and MNOs’ SMS systems.  The desire to minimise cost and improve customer experience through automation has led to the widespread use of chatbots.  In addition, a number of low data volume IoT applications also rely on SMS.

Organisations continue to seek improvements in the way that they communicate with individual customers, subscribers and others with whom they have an ongoing relationship.  Many of them use other ways of communicating with their customers and improving their experience, such as OTT messaging apps, in-app communications and e-mail.  There is interest amongst these organisations in enhanced versions of SMS which would combine its strengths of universal reach with the ability to support enhanced content.

RCS could provide the enhanced functions that many organisations are looking for. However, although it has been available in some markets for several years penetration is low, but since Google’s intervention to provide an Android API and support GSMA’s Universal standard it is now growing more rapidly.  Alternatively, users could migrate to IP based alternatives, such as a combination of OTT messaging and in-app messaging and, perhaps, RCS.

Faced with these developments and options, MNOs face a number of questions regarding the strategy they should adopt for SMS.  These include whether to phase it out, perpetuate it, or migrate to RCS.

This report addresses those issues, looking at use, services delivered and at service providers and user views about SMS and their future needs and wants.

 

Companies: Twilio, GFI Faxmaker, MessageBird, TextIT, Uber, Trulia, Coca-Cola, Dell, Inuit, Alaska Airleiones, Nordstrom, OPenMarket, Amdocs, Google, Genesys, LivePerson, Nuance, Salesforce, Sigfox, Ingenu, Weighless, Facebook Messenger, WhatsApp, WeChat, QQ Mobile, Instagram, Snapchat, Skype, Viber, Line, Telegram, Kakaotalk, Apple,

Countries: Brazil, France, Germany, China, India, UK, US,

Keywords: IMS, Appeals and donations, SMS, 2G, Emergencies, dispatch and delivery alerts, Payment reminders & receipts, Disease prevention, Sales support, LPWAN, Marketing and promotions, Google Hub Interconnect, OTT messaging apps, Event planning, e-mail, SMS over SGs (evolved Gs interface), Shift scheduling, chatbots, Two factor authentication (security), Voting, FaceTime, Tracking, 3GPP release 8, Order confirmation, A2P, Sales lead alerts, Appointment reminders and scheduling, RCS, Information – with HTML links,  Notifications, iMessage, Surveys and feedback, in-app messaging, 5G, 4G, Android, Arrival, AI,

1

Overview

1

2

Introduction

2

2.1

Background to the Report

2

2.2

Report Content

3

2.3

Currency and Conversions

3

2.4

Further Questions and Feedback

3

3

SMS VAS

4

3.1

Introduction

4

3.2

A2P (B2C) Applications and Providers

4

3.3

Mobile User Interest

7

3.4

Trends in Business Use of Applications

8

3.5

Support for SMS in 5G

9

4

Alternatives to SMS

11

4.1

Introduction

11

4.2

Business Interest in Enhanced SMS or Alternatives

11

4.3

In-app Messages

13

4.4

Use of Chatbots

13

4.5

OTT Services

14

4.6

RCS

15

4.7

LPWAN

17

4.7.1

Sigfox

18

4.7.2

LoRa

18

4.7.3

Ingenu/RPMA

19

4.7.4

Weightless

19

5

Key Findings and Conclusions

20

5.1

Introduction

20

5.2

Advantages and Options

20

5.3

Factors to Increase Use

21

5.4

Enhancements

21

5.5

Conclusions

22

6

Recommendations

23

 

Appendix – Feedback Questions

24

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