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

2022 Tech Trends Outlook: What Happens Next?

This year may very well be another period of unprecedented challenges and opportunities. In 2022, several highly anticipated technology-related advancements will NOT happen, according to the predictions by ABI Research. Their analysts identify many trends that will shape the technology market and some others that, although attracting huge amounts of pundit speculation and commentary, are less likely to advance rapidly over the next twelve months. "The fallout from COVID-19 prevention measures, the process of transitioning from pandemic to endemic disease, and global political tensions weigh heavily on the coming year's fortunes," said Stuart Carlaw, chief research officer at ABI Research . What Won’t Happen in 2022? Despite all the headlines and investments, the metaverse will not arrive in 2022 or, for that matter, within the typical 5-year forecast window. The metaverse is still more of a buzzword and vision than a fully-fledged end goal with a clearly defined arrival d

Digital Transformation for the Oil and Gas Sector

The savvy CEOs of multinational organizations will accelerate their investment in digital transformation projects in 2022, and beyond, to improve their competitiveness. Every industry leader that is forward-looking will act swiftly to grasp the upside opportunity. Global oil & gas companies face a myriad of operational, commercial, and existential security threats. According to the latest worldwide market study by ABI Research, oil & gas firms apply digitalization to combat these threats and will spend $15.6 billion on digital technologies by 2030. Oil & Gas Digital Apps Market Development Investments in digitalization can help to analyze a supply pipeline’s condition, prepare for fluctuations in the changing prices for oil and gas, as well as aid action plans to create more sustainable operations and transfer to producing renewable energy sources. "Safety and Security are top priorities for oil & gas operators. Data analytics allied with IoT platforms have become

How Ride-Sharing Apps Changed Local Transport

Building on significant advances in disruptive mobile app technology, ride-sharing services have emerged to become a popular means of urban mobility. This is unsurprising given the advantages of ride-sharing options over traditional transport modes, such as buses and more expensive taxis. Innovative ride-sharing platforms enable app users to customize their journeys according to real-time phenomena, such as nearby traffic conditions, time of day, and rider demand. However, this is not to say that ride-sharing services are perfect. The popularity of ride-sharing has resulted in some additional traffic congestion in major cities already struggling to control this issue, while the widespread disruption caused by the pandemic affected most stakeholders within the local transportation value chain. Ride-Sharing App Market Development According to the latest worldwide market study by Juniper Research, ride-sharing spending by consumers globally will exceed $937 billion by 2026 -- that's c