Skip to main content

Application-to-Person SMS Revenues will Reach $60B

The growth of Over the Top (OTT) mobile messaging offerings has threatened mobile network operator revenues and the market is now at a juncture, with many questioning whether the more traditional network operators are capable of competing head-to-head with those progressive OTT messaging players.

According to the latest market study by Juniper Research, revenues from Application-to-Person Short Messaging Service (A2P SMS) -- defined as messages which are sent both to and from a mobile application -- will be worth almost $60 billion by 2018, that's up from $55 billion in 2013.

The reach and reliability which SMS affords organizations looking to contact customers and employees remains far greater than many other forms of communication.

Secure, Reliable and Ubiquitous Messaging

Juniper found that A2P SMS would see growth both in terms of traffic and revenues over the forecast period. For organisations such as financial services or ticketing providers, SMS is the most secure and reliable option for A2P communications.


Furthermore, it is ubiquitous. Almost all handsets can receive SMS, however the fact that OTT messaging platforms frequently do not inter-operate -- and there are still a significant number of people without mobile data plans -- means they’re not appropriate for A2P communications.

Person-to-Person SMS Revenues are Declining

Moreover, the growth in A2P SMS revenues comes at the same time as P2P (person-to-person) SMS revenues are in decline.

Mobile operators are losing out as their customers are switching to OTT messaging platforms, which have the allure of free offerings.

MNOs have reacted by aggressively bundling messaging into cheaper deals for users, squeezing their messaging ARPU and, subsequently, total revenues.

Other key findings from the market study include:

  • By 2018, IM (Instant Messaging) traffic will stand at 63 trillion messages, but only account for just over $3 billion in revenues.
  • Far East and China will generate the most traffic across all mobile messaging formats, throughout the forecast period.

Popular posts from this blog

Digital Transformation Spending Reaches $1.8 Trillion

Ongoing investment in business technology will remain on track, despite concerns about the global economic outlook which continues to evolve in 2022. Enterprise CIOs and CTOs are focused on operational profitability and digital business growth goals that are enabled by strategic IT initiatives. Global spending on the Digital Transformation (DX) of business practices, products, and organizations is forecast to reach $1.8 trillion in 2022 -- that's an increase of 17.6 percent over 2021, according to the latest market study by International Data Corporation (IDC). Many anticipated DX investments will sustain this pace of growth throughout the 2021-2025 forecast period, with a five-year compound annual growth rate (CAGR) of 16.6 percent. Digital Transformation Global Market Development "IDC expects to see aggressive DX technology investment growth in 2022 following a minor slowdown during the pandemic period," said Craig Simpson, senior research manager at IDC . "As orga

Flexible Working: Why Company Culture Matters

The main reasons for the Great Resignation are obsolete leadership, fearful middle managers, and a toxic culture that hinders employee engagement. Perhaps that's why some organizations are still struggling with the consideration and development of a flexible working model.  They're incapable of evolving to a more enlightened approach to work where employees are treated with respect. They're stuck in a bygone era of the 20th-century industrial revolution where 'shareholder value' tops all other values, and where spreadsheets and financial data analysis drives all key decision making. We should not be surprised that 76 percent of human resource (HR) leaders now feel that hybrid work challenges an employee's connection to organizational culture, according to a recent survey by Gartner. A 2022 poll of HR leaders reveals the most challenging aspect of setting their hybrid strategy is adjusting the current organizational culture to support a hybrid workforce. In fact,

Energy Sector IoT Cybersecurity Gains Momentum

The electric distribution industry continues to invest in digital transformation projects. Advanced Metering Infrastructure (AMI) technology is becoming a driver for connected electricity meters, which will reach an installed base of 1.3 billion by 2027. AMI growth is prompting utilities and energy suppliers to revisit their IT infrastructure security and device management operations, according to the latest worldwide market study by ABI Research. Energy Infrastructure Security Market Development Digitization of traditional electricity grids and the modernization of the aging energy infrastructure is among the top concerns for utility operators and governments worldwide. Security for last-mile energy consumption applications was frequently overlooked. "However, the introduction of AMI, smart metering, and grid digitization is steadily increasing spending for secure management services, assisting implementers to transition to IT (information technologies) and OT (operational techno