Skip to main content

SMS still alive and kicking!

SMS still alive and kicking on back of applications 

App-to-person SMS business has grown 20% every year since 2014 to 210 billion messages in 2018. 

NEW DELHI: If you thought that the humble SMS, or short messaging service, has died a silent death thanks to WhatsApp, Telegram and others of their ilk, think again. As of 2019, it’s a business worth more than $500 million with about 22 billion messages travelling on telecom networks every month. 

But it’s not the typical person-to-person messaging that has grown — that category has flatlined. What’s booming is app-to-person messages, thanks to the plethora of apps that users are downloading to their smartphones. These in turn are peppering subscribers with text messages — notifications, advertisements, promotions and transaction confirmations. The segment has grown 20% every year since 2014 to 210 billion messages in 2018, according to industry data, and is expected to reach 265 billion this year. Five years ago, the number was less than 100 billion. 

“There is a surge in A2P SMS or enterprise messaging,” said Bharat Bhargava, partner and leader, telecom advisory at EY. “Adoption across verticals including marketing, banking, and retail for OTP (one-time-password) confirmations, transaction alerts, notifications, branding and marketing are on the rise,” he added. 
More than 95% of the traffic comes from within India, typically generated by International messages from apps like Google, Facebook, Twitter etc. make up the rest. 
Expectedly though, the number of monthly messages sent by a subscriber has halved to 16 at the end of last year from 38 in 2012, according to data from Analysys Mason. The volume of person-to-person messages within India was then at 391 billion, before the advent of over-the-top apps such as WhatsApp, Facebook Messenger and others. That has dropped every year since then to 226 billion in 2017. 

The rise in app-to-person messages has offset the fall in person-to-person messages over the years , analysts said.

Indian telcos, especially the older ones, are pleased about the shift. They charge the app companies 10 paise per message terminating within India and Rs 1 for international ones. Total revenue accruing to the telcos is estimated at $515 million (Rs 3,576 crore) in 2019, up 145% from $210 million (Rs 1,457 crore) in 2017. That helps in a sector under financial stress amid stiff competition. 

“Consumers are increasingly adopting digital for transactions and using apps to serve diverse needs,” said a spokesperson for Vodafone Idea, the country’s largest carrier. “Every such digital engagement requires validation and authorisation via message.” 

Reliance Jio Infocomm and Bharti AirtelNSE -1.36 % didn’t comment on the size of the business or its growth. 

“It’s a win-win for all — operators get an increasing revenue stream, both price and volume wise. Enterprises find it a most economical medium to communicate and all types of consumers have access to it,” said Himanshu Goel, chief executive of Syniverse India, which aggregates messages between enterprises and telecom networks. 


Popular posts from this blog

Welcome Aboard!

Warm Welcome to our Sales Head   We are excited to announce a new addition to the VA Networks family. Introducing, MJ Abraham, who would be our ambassador and Sales Head – A2P Messaging for PAN India Field Sales, Services, and Support. In this role, MJ will head up our PAN India sales vertical, helping our customers to continue to expand and grow with VA Networks. To give a brief familiarization about MJ, he demonstrates a commendable history of working in the information technology and services industry, ever since he has kicked off his career. Skilled in, entrepreneurship, team Building, and management, MJ is well known for strong sales acumen. He holds a Master’s Degree in Business Administration (M.B.A.) focusing on Sales, Marketing and General Management from Albertian Institue of Management.   MJ has been a veteran in the arena of A2P messaging, which has been his core passion ever since he has known the facts and tricks of Bulk Messaging Solutions. His charming

Announcing the joining of our CEO!

VA Networks Welcomes their Captain Aboard! Kochi, 4th July, 2019 - VA Networks is pleased to announce the appointment o f M r. Anand Krishnan as our Chief Executive Officer (CEO) effective immediately. We extend a warm welcome to Anand, who with multiple years of experience in management, operations and sales roles, is eager to lead the company to new heights as we enter a critical phase in the company’s evolution and development. Anand’s appointment is a clear reflection of the company’s current state; ready to take on the future and all fired up after a strong year of growth and successful customers. There is enormous opportunity for VA Networks that lies ahead, and we couldn’t be happier with Anand, who has been a Strategic Consultant to us all through our infancy stages, and is now joining our family and helping us and our customers achieve continued success. We’d like to introduce you to Anand, provide details on his background and his vision for the co

50 Most Commonly Used Terminologies in The SMS Industry

Let's get familiar with some common terminologies used in the SMS Industry! The SMS Industry, like any other, has a fair share of short-forms and terminologies of its own. Keeping the interest of our customers, vendors, suppliers and the general public in mind, backed by our experience and the successful positioning we have in the field, here are 50 most commonly used SMS industry terms in the form of an SMS glossary.   1. DLR (Delivery Report) Delivery report or DLR is one of the main features of the SMS MT that enables delivery reporting for every message sent. DLR is sourced directly from the handset.   2. Flash SMS The flash message service enables you to send an SMS which will appear on the recipient's mobile phone screen. With the flash SMS the recipient does not need to go to the mobile phone inbox to read the message as it appears directly on the screen.   3. Binary Messages Binary Messages are messages requiring specific encoding to overcome the limit