Skip to main content

Flipside to Over-the-Top Messaging Service Challengers

For the longest time, text messaging has been a huge cash cow for mobile network service providers. However, the eager acceptance of over-the-top (OTT) mobile device applications is greatly expanding the overall messaging market and comes partly at the expense of legacy text messaging.

According to the latest market study by ABI Research, the deployment of competitive Voice over Long Term Evolution (VoLTE) and Rich Communication Services (RCS) will likely help network operators retain 65 percent of their former messaging market share.

That being said, the many free or low-cost mobile messaging application (app) alternatives available to consumers are still a worrying concern for mobile network operators.

Operators can use VoLTE and RCS services, ultimately to retain their subscribers, and also increase revenues that will come with the many innovations from third party developers.

The quality of services that VoLTE and RCS can provide to their customers will be as table stakes in the mobile device, and may prove compelling to mobile service subscribers -- assuming that some people remain unaware of the free alternatives.

"Operators are the key drivers of RCS. When they adopt VoLTE with RCS enriched services natively embedded into the mobile, they will in time develop competitive advantages. This will also attract and retain customers with the quality and services they provide," said Sabir Rafiq, research analyst at ABI Research.

Not all of the increase in OTT messaging and voice traffic represents lost revenue to operators. Operators still have a commanding share of voice and messaging but the OTTs are increasing their audience, the operator share is decreasing.

ABI Research finds that the leading infrastructure vendors, Ericsson, Alcatel-Lucent, Huawei, and NSN all have RCS solutions. There are also various specialists with RCS-based solutions available for operators.

Companies like, Acision RCS, BroadSoft, Syniverse, Kineto and more also provide the mobile network operators the means to potentially overpower OTTs in the market. But we'll have to wait and see if that actually comes to pass.

Popular posts from this blog

Climate Change Benefits from The Circular Economy

The COP26 Summit (in Glasgow, Scotland)  brought parties together to accelerate action towards the goals of the Paris Agreement and the UN Framework Convention on Climate Change. Meanwhile, the circular economy is a key sustainability strategy adopted by industry leaders in their efforts to achieve progress. While the circular economy is still in its infancy in terms of data and metrics, it's a growing phenomenon where technology sectors -- such as the Internet of Things (IoT) for asset tracking -- are set to grow rapidly within the next five years. Global technology intelligence firm ABI Research forecasts that the world will achieve over 10.5 percent circularity by 2030, as sustainability efforts and incoming legislation start to take effect. Circular Economy Tech Market Development "The circular economy is an often-misunderstood concept that goes much further than waste management and can become a blueprint for cities. It is a movement away from our take-make-waste economy

Business Technology for The Anywhere Workspace

The COVID-19 global pandemic fueled the trend of pushing executives outside of their comfort zone, while government-mandated lockdowns required their knowledge worker employees to work from home. Companies that previously avoided 'Flexible Working' models were forced to embrace the pervasive trend in a matter of weeks, as new remote working policies became a CHRO standard practice. As we enter 2022, more employers will empower their key employees to work wherever they desire and engage with customers whenever and however they prefer. Moreover, the ongoing transformation to an 'Anywhere Workspace' will drive strategic IT spending and advance cloud-based SaaS adoption. Business Technology Market Development Global enterprise IT spending is projected to total $4.5 trillion in 2022, an increase of 5.5 percent over 2021, according to the latest worldwide market study by Gartner. "Enterprises will increasingly build new technologies and software, rather than buy and imp

Top 10 Predictions for The Worldwide CIO

Chief executives are eager to accelerate a digital business growth agenda. Focused on business model reinvention, the remediation of technical debt, sustainable IT infrastructure and more, International Data Corporation (IDC) unveiled their Worldwide CIO Agenda 2022 Predictions. The key IDC predictions will likely impact CIOs and IT professionals over the next one-to-five years. IDC analysts believe IT leaders have opportunities that will not present themselves again in their lifetimes. Chief Information Officer Agenda Predictions With forward-looking insights, IDC provides senior IT leaders and Line-of-Business (LoB) executives with actionable guidance for managing IT investment priorities and implementation strategies as they continue to navigate the winds of change. The top ten IDC predictions are: 1: Through 2026, 65 percent of CIOs will sustain a cycle of tech-based empowerment, agility, and resilience through collaborative governance, new service delivery models, and a business o