The RCS Business Messaging Opportunity for Mobile Operators

By: 3C The Messenger – July 9, 2019

In today’s consumer messaging environment, mobile network operators (MNOs) are facing external pressures from OTT (over-the-top) messaging players to deploy an enhanced native messaging experience for their subscribers. While a rich, digital, person-to-person messaging experience for subscribers has become table stakes, there has been no clear model on how MNOs can monetize the experience up until now. The reality is, in order to compete with OTT messaging providers, MNOs are forced to provide rich messaging at no additional cost to their subscribers—potentially threatening existing SMS revenue streams.

Deploying RCS capabilities for subscribers is not a simple expansion of legacy messaging services. It requires significant investment and planning to successfully deploy the technology, deepening the need for future monetization.

So how do MNOs provide the enhanced RCS messaging experience to their subscribers, while being able to justify the investment through a monetization strategy? The answer is RCS Business Messaging.

RCS messaging—both Person-to-Person (P2P), as well as business messaging—present transformative opportunities for mobile operators and provide a consumer messaging experience that can exceed capabilities provided by OTT messaging. The richness and interactive, digital nature of RCS can help mobile operators unlock billions of dollars of global digital marketing budgets brands and enterprises spend every year, opening revenue streams never before accessible with traditional messaging technologies. Research firm Mobilesquared forecasts ARPU for RCS will reach $6.42 USD by 2023, compared to only $3.60 USD for traditional SMS.

While making the infrastructure, hardware, and software investments necessary to bring P2P and RCS Business Messaging to market are significant, they are requirements to stay competitive in many markets. And there is a clearly defined path for mobile operators to build a business case to support RCS with both internal cost/revenue drivers as well as external revenue opportunities.

There are a number of mutually-exclusive ways to monetize RCS investments and generate measurable returns in the form of new revenue growth, expanded value-add enterprise offerings, enhanced customer experiences, reduced customer support costs, and overall improved customer satisfaction. Business objectives and departments within mobile operators can also benefit from RCS Business Messaging, and collaboration on defining and building the ROI and opportunity business case is critical.

Enterprises and brands are ready to allocate and invest digital marketing budget dollars towards RCS Business Messaging to communicate and engage with customers because it creates an enhanced digital platform to reach their customers where they already are—in their messaging app. The ecosystem and market opportunity is here for mobile operators to make it easy to access, adopt, and monetize RCS Business Messaging.

To learn more about how mobile operators can capitalize on the RCS business messaging opportunity, download our new whitepaper The RCS Business Messaging Opportunity for Mobile Operators.

3C

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