sms, WhatsApp, Short Messaging Service, Telegram, sms business, Facebook Messenger, facebook

Why telecom companies are not ending the SMS service?

Business # Headlines Technology

If you think that the messaging app and platform like WhatsApp, Facebook Messenger, Telegram have caused ‘slow death’ of SMS or Short Messaging Service. That is, the existence of the SMS is over, then you need to change your opinion. In 2019, SMS is expected to have more than $ 50 million (about 35 billion rupees) business. Also, about 22 billion SMS’s are being sent to telecom networks every month.

Tremendous growth in app-to-person categories
However, the growth of the person-to-person message (from one person to another to the other) is not visible in the catalog. Growth of this category is almost flat. The app-to-person (A2P) SMS category has seen tremendous growth and it is the app that users are downloading in their smartphones. These apps are sending text messages to users. These apps are coming in the form of notifications, advertisements, promotions and transaction conformation text messages.

App-to-person SMS will reach 265 billion this year
According to industry data, the year 2014 has seen an increase of 20% in app-to-person SMS category and this has reached 210 billion messages in 2018. It is expected to reach 265 billion messages in 2019 this year. Five years ago this figure was less than 100 billion messages. Bharat Bhargava, partner and leader of Telecom Advisory in Ernst & young says, “There has been a sharp jump in app-to-person SMS or enterprise messaging.” He told that its adoption has increased rapidly in verticals such as marketing, banking, one-time-password (OTP) conferences, transaction alerts, notices, branding.

The sharp drop in messages sent by the users
However, the message sent by the users in a month has seen a sharp decline. According to Analysys Mason’s data, in 2012, the number of messages sent by a user in the month was 38, which dropped to 16 last year. Before the arrival of the second over-the-top app including Whatsapp, Facebook Messenger, the volume of the person-to-person message was 391 billion in India. After these apps have come down, it has decreased continuously and in 2017 this has reduced to 226 billion message level.

Analysts say that the app-to-person message has to compensate for the decline in the person-to-person message. Indian telecom companies (especially older companies) are very happy with this change. Telecom companies charge 10 paisa for each message within the country and 1 rupee app for international messages. Telecom companies are expected to get revenues of about Rs 3,576 crore in 2019. In the year 2017, telecom companies received revenues of Rs 1,457 crore.