Application to person messaging takes off, shows research
P2P SMS revenues are in decline
Revenues from A2P (Application-to-Person) SMS messaging will be worth almost $60 billion by 2018, up from $55 billion in 2013, according to Juniper Research.
For organisations such as financial services or ticketing providers, said Juniper, SMS is the most secure and reliable option for A2P communications.
Furthermore, it is ubiquitous as almost all handsets can receive SMS.
Juniper said the growth in A2P SMS revenues is coming at the same time as P2P (person-to-person) SMS revenues are in decline.
Mobile operators are losing out as their customers switch to OTT (over the top) internet content systems, that offer free messaging platforms, said Juniper.
MNO's (mobile network operators) have reacted by "aggressively" bundling messaging into cheaper deals for users, squeezing their messaging ARPU (average revenue per user), Juniper added.