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SMS on its deathbed?

SMS on its deathbed? 

There has been a rise in OTT applications, like Whatsapp, in recent years. These require data usage and unfortunately not all parts of the world have this capability.

At the same time, SMS has been a prevalent tool for marketing and communication purposes, which has also nourished SMS to a new level.

Either way, SMS remains – or appears to remain – as the primary choice for customer communication and has gained market in A2P (application-to-person). The rise of OTT and other messaging applications cannot be ignored too.

“SMS is a key mobile service, strengthened by the growing A2P market and is expected to take over P2P revenue by 2015,” Perry Offer, CEO of Dialogue Group said in a press release. “We look forward to joining the debate to highlight how we can work with wholesale businesses offering on-net connectivity and reach as well as helping MNOs monetize their A2P traffic.”

SMS is expected to generate $100 billion worth of revenue, which is 50 times the revenue of instant messaging service on MIM, and experts predict that SMS market revenues will bring in even be more than MIM until 2017.

For the SMS industry, the prime revenue inflow is from the enterprises. OTT is rarely used for business messaging and its platform is still fragmented. This appears to be the reason why enterprises are engaging customers through the SMS channel, which sustains their revenue streams.

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