RCS-CAPABLE SUBSCRIBERS WILL TOUCH 1.2 BILLION WORLDWIDE 2022 - JUNIPER RESEARCH

KUALA LUMPUR, Feb 3 -- A new study from Juniper Research has found the total number of RCS (Rich Communication Services) subscribers will grow from 1.2 billion in 2022 to 3.8 billion by 2026; accounting for 40 per cent of global mobile subscribers, representing growth of over 200 per cent.

RCS is protocol for rich media messaging over operator networks that provides advanced business messaging services, such as chatbots and payments.

However, the new report, RCS Business Messaging: Monetisation Models, Competitor Leaderboard & Market Forecasts 2022-2026, predicts OTT messaging apps, which control their own development, will provide fierce competition for rich media business messaging traffic.

To combat this threat, operators must promote the greater reach of RCS to subscribers over the fragmented OTT ecosystem to demonstrate its value.

Despite the competition from OTT apps, the research forecasts global operator revenue from RCS will grow from US$230 million in 2022 to over US$4.6 billion by 2026. (US$1 = RM4.176)

To capitalise on this growth and combat OTT messaging competition, it recommends RCS providers offer a simple price-per-message monetisation model established through SMS business messaging use to enable platforms to attract high-spending brands to RCS messaging over OTT apps, by offering a pricing model that brands are familiar using.

By 2026, the research anticipates that 95 per cent of RCS business traffic will remain on this model, according to a statement.

However, the research predicts that an increasing focus on omnichannel retail will drive deployments of chatbot services in RCS messaging apps, requiring RCS platforms to offer new monetisation models, such as the session-based model, in which brands and enterprises pay for unlimited messages to a subscriber over a limited amount of time.

In turn, the research urges RCS providers begin forming direct partnerships with online retailers and social media platforms to create frameworks supporting a session-based monetisation model, as RCS business messaging develops.

-- BERNAMA