RCS is here to stay and doing well

RCS has been touted as a saviour when the SMS value has been destroyed by OTT messaging services, but without much success, but it may finally have find its moment.

Wei Shi

February 26, 2019

2 Min Read
RCS is here to stay and doing well

RCS has been touted as a saviour when the SMS value has been destroyed by OTT messaging services, but without much success, but it may finally have find its moment.

Mavenir, the software company, presented on day 1 of MWC 2019, promoting its rich communication solutions offered by Rakuten. The key benefits, or the main use cases that RCS can differentiate from OTT messaging actually are less to do with taking consumers back to texting each other, or P2P messaging, but rather the communication between businesses and consumers, or A2P messaging.

This view is corroborated by Infobip, a communication platform for ominichannel engagement and provider of aggregated OTT messaging services such as WhatsApp and Viber. Its solutions can facilitate clients to do customer service and CRM. However, the company told Telecoms.com that its dominant business, which it has seen annual growth of between 30% and 40%, is SMS and RCS based services.

One of the use cases is helping businesses improve customer engagement. Despite that on feature comparison RCS is mostly playing catching up on OTT messaging services, SMS and RCS tramp OTTs in consumer trust. To quote Guilliaume Le Mener, Mavenir’s SVP for Enterprise Business, RCS is a “clean channel”, not tarnished by the privacy scandals committed by Facebook and co, or the over monetisation by others. Research shared by Mavenir showed 97% of SMS / RCS are opened within 3 minutes.

In one case, Infobip was hired by Twitter to reengage the inactive users, after the social media giant failed the mission with its early efforts through email. Thanks to its rich features, RCS messages can enable users to explore the content directly. For those users on phones not compatible with RCS, brands can choose to fall back on SMS with a web line. The results were much more improved also owing largely to the capability of producing rich analytics to evaluate the campaign effectiveness and make quick decisions on any changes needed.

In addition to A2P messaging, RCS is also being used by brands to engage consumers in P2A, that is engaging directly with the brands through messaging. On the brand side the service can be handled by bots. This will then need to be supported by AI and analytics which will be another business opportunity for the RCS solution providers. With OTTs also actively moving into the P2A domains, again this is an area that operators need to have a stronghold for RCS before it is too late.

For Rakuten, RCS may be particularly meaningful, as, coming from an internet service and MVNO background, Rakuten has a big range of digital service tied to a user’s Rakuten ID. RCS will be a key instrument to maintain and strengthen customer engagement when it builds out its 5G network from ground up.

About the Author

Wei Shi

Wei leads the Telecoms.com Intelligence function. His responsibilities include managing and producing premium content for Telecoms.com Intelligence, undertaking special projects, and supporting internal and external partners. Wei’s research and writing have followed the heartbeat of the telecoms industry. His recent long form publications cover topics ranging from 5G and beyond, edge computing, and digital transformation, to artificial intelligence, telco cloud, and 5G devices. Wei also regularly contributes to the Telecoms.com news site and other group titles when he puts on his technology journalist hat. Wei has two decades’ experience in the telecoms ecosystem in Asia and Europe, both on the corporate side and on the professional service side. His former employers include Nokia and Strategy Analytics. Wei is a graduate of The London School of Economics. He speaks English, French, and Chinese, and has a working knowledge of Finnish and German. He is based in Telecom.com’s London office.

test new title

See more
Subscribe and receive the latest news from the industry.
Join 56,000+ members. Yes it's completely free.

You May Also Like