A recent study conducted by Juniper Research has unveiled promising projections for the market of Rich Communication Services (RCS) in business messaging. The study indicates a substantial growth trajectory for global operator revenue derived from RCS business messaging traffic, which is expected to rise from $1.3 billion in 2023 to a staggering $8 billion by 2025.
A significant factor contributing to this anticipated surge is Apple's announcement, made in late 2024, regarding its support for RCS technology. This development is set to be a catalyst for growth in the number of active RCS users, which is forecasted to increase by 900 million within the next two years, ultimately reaching a total of 2.1 billion users worldwide.
The findings of the study highlight a notable trend within the telecommunications industry, suggesting that the rise in RCS Business Messaging (RBM) termination revenue will likely incentivise more operators to embrace RCS technology. As the SMS business messaging sector grapples with rampant fraud, RCS presents a viable alternative, offering enhanced security features that could help combat these issues.
Molly Gatford, the author of the study, elaborated on the implications of these findings, stating, “For the first time, the value of SMS is being questioned by enterprises. Operators must act quickly if SMS fraud and high prices cannot be resolved.” This sentiment underscores the urgency for telecom operators to adapt their services to meet the evolving demands of businesses in an increasingly digital landscape.
Furthermore, the research indicates that RCS could serve as a critical tool for telecom operators aiming to retain a greater volume of business messaging traffic on their networks. With SMS usage on a decline and the emergence of over-the-top (OTT) messaging channels gaining popularity, the integration of RCS into business messaging strategies may become essential for operators looking to maintain relevance in the marketplace.
The implications of this transition are particularly pertinent in light of the ongoing shifts within communication technology, as stakeholders across the industry begin to evaluate the future of messaging services. The study from Juniper Research is, therefore, a significant indicator of the potential transformation within the business messaging landscape over the coming years.
Source: Noah Wire Services