Skip to main content

How AI will Advance Mobile Messaging App Evolution

There has been a significant evolution in the variety of use cases for mobile Application to Person (A2P) messaging. Historically, A2P was used for alerts and as a billing mechanism and carrier for simple content and services, both for one-off downloads or actions (e.g. voting) and for recurring payments.

The latter use case has declined in the past 5 years, due to a combination of the transition to an app-based economy, largely driven by card billing and by regulatory action -- in markets such as the U.S. and the UK -- against the many known fraudsters.

However, the near demise of this use case has been more than offset by the emergence of alternative opportunities, many of which have themselves been created by consumer adoption of software apps and smartphones.

A2P Messaging Market Development

A recent worldwide market study by Juniper Research found that revenues from Rich Communication Services (RCS) messaging will exceed $9 billion by 2022 -- that's up from an estimated $126 million in 2018. RCS, backed by Google, supports rich media content including video sharing and file transfers.

The latest market research found that mobile network operator RCS revenue potential is firmly rooted in A2P services, which includes automated messages from companies to their customers.

A2P RCS will bridge the gap between the ubiquity of SMS and the enhanced experience that Over-the-Top (OTT) applications bring. Juniper forecast that over 90 percent of RCS traffic will be A2P by 2022, as companies benefit from rich media functionality and large reach to enhance engagement.


However, Juniper analysts discovered that initial pricing and attractive business models will likely play a pivotal role in encouraging the early adoption of this technology. Mobile network operators are advised to implement an event-based model involving a simple charge per delivered message to ease the transition from SMS to RCS. Juniper forecasts that global RCS users will near 2 billion by 2022.

"Operators’ support for RCS is growing as the revenue potential becomes apparent. While the technology has been unsuccessful as a Peer-to-Peer (P2P) messaging channel, its capabilities as an A2P service will prove popular with advertisers," said Sam Barker, senior analyst at Juniper Research.

Juniper recommended that all telecom service providers must consider fair usage policies while implementing new pricing models. For example, a model based on the number of RCS interactions would necessitate such a policy to guard against straining their mobile networks.

Outlook for A2P Messaging Use Cases

Juniper Research analysis also predicted that Artificial Intelligence (AI) technology will be needed to facilitate conversational communication that minimizes response times.

Until then, it suggested that APIs support interactive media-rich content to foster confidence amongst mobile service users. Additionally, it urged platforms to include fallback to SMS to ensure message termination.

Popular posts from this blog

GenAI: A New Era in Business Transformation

The advent of artificial intelligence (AI) has ushered in a new frontier of innovation, with Generative AI (GenAI) at the forefront. At the brink of this revolution, it's crucial to understand the current GenAI adoption and its implications for commerce worldwide. A recent poll conducted by Gartner provides valuable insights into this emerging trend and the potential upside opportunities. Generative AI Market Development The poll, which included 1,419 executive leaders, indicates a significant shift in the corporate world's perception and adoption of GenAI. The data reveals that 45 percent of respondents are currently piloting GenAI, while another 10 percent have put it into production. This is a substantial increase from a similar poll conducted in March and April 2023, where only 15 percent were piloting and 4 percent were in production. GenAI is no longer a mere buzzword; it has become a strategic focus for organizations worldwide. As Frances Karamouzis, VP Analyst at Gartne

GenAI Revolution: The Future of B2B Sales Apps

When B2B buyers consider a purchase they spend just 17 percent of that time meeting with vendors. When they are comparing multiple suppliers‚ time spent with any one salesperson is 5 or 6 percent. Self-directed B2B buyer online research has already changed procurement. IT vendors are less likely to be involved in solution assessment. Now, more disruptive changes are on the horizon. By 2028, 60 percent of B2B seller work will be executed through conversational user interfaces via Generative Artificial Intelligence sales technologies -- that's up from less than 5 percent in 2023, according to Gartner. Generative AI Market Development "Sales operations leaders and their technology teams must prepare for the convergence of new forms of artificial intelligence, dynamic process automation, and reinvented deal-planning activities that will transform the sales function," said Adnan Zijadic, director analyst at Gartner . According to the Gartner assessment, Generative AI (GenAI) s

Industrial and Manufacturing Technology Growth

In an evolving era of rapid advancement, market demand for innovative technology in the industrial and manufacturing sectors is skyrocketing. Leaders are recognizing the immense potential of digital transformation and are driving initiatives to integrate technologies into their business operations.  These initiatives aim to enhance efficiency, reduce costs, and ultimately drive growth and competitiveness in an increasingly digital business upward trajectory. The industrial and manufacturing sectors have been the backbone of the Global Networked Economy, contributing $16 trillion in value in 2021. Industrial and Manufacturing Tech Market Development   This growth represents a 20 percent increase from 2020, highlighting the resilience and adaptability of these sectors in the face of unprecedented challenges, according to the latest worldwide market study by ABI Research . The five largest manufacturing verticals -- automotive, computer and electronic, primary metal, food, and machinery -