The future of SMS in the evolving messaging market

Many mobile markets are becoming saturated, with handset sales now driven primarily by replacement, while at the same time increasing competition is reducing voice and SMS pricing levels to historic lows. Meanwhile, smartphone adoption and mobile internet usage is growing, creating opportunities for new methods of communication. IP messaging players are taking advantage of this opportunity, gaining scale and disrupting the traditional SMS model. In markets where this is taking place, SMS volumes have declined since plateauing around 2010.

However, our research shows that not all markets are seeing the same trends, with evidence that the decline in SMS volumes has been slower in markets where unlimited SMS tariffs are common.

The report also outlines how operators can potentially compete in the messaging space through feature-rich services such as RCS, which will be dependent on widespread collaboration between operators.