We are reading a lot of buzz and hype about RCS (Rich Communication Service) and RBM (rich business messaging, the A2P/P2A of RCS messaging) these days.
Telcos are happy with the final Apple OK to provide RCS native iOS experience, they are claiming today RCS has 1.1 billion users. The messaging aggregators after being desperate for the lack of evolution of SMS and start becoming more agnostic providing services on top of OTT messaging apps as Whatsap, Viber etc are happy to return to a more known space (telcos partnerships) but with 21st century messaging features.
Let’s analyze what is real behind this.
- There are no 1.1 billion RCS users. Being the android app RCS capable of not make their users RCS as most of their use is now to check OTP SMS or some marketing promotions in plain text. Most people do not know they have a “Whatsapp alike” messaging tool native in the phone.
- Regarding aggregators, the RCS business model will be different from SMS as now there is Google as “elephant in the room” as additional key player and infrastructure provider and hub connector. RCS happened finally thanks to Google but it is not free, now it is a key player in a theoretical telco business till now.
- Telco representatives acknowledge that p2p leadership is not possible to be re-taken from Whatsapp but they look forward to RCS becoming the “app” for business messaging separated from Whatsapp left for P2P by users. This won’t happen as Whatsapp can create a clear UX separation from A2P and P2P in the same app or even launch complementary app for Business Messaging cases.
What was wrong with RCS?
- Basically, the biggest failure of RCS was not launching in time. In 2010, RCS has RCS core (with and without IMS), Android and iOS app clients, and RCS API Gateway for business messaging and also for web-exposure (accessing in a web or smart TV client). My startup then, Solaiemes (our blog here) created the first RCS API gateway (also with developer portal to create cases) and wrote the 1st GSMA spec. RCS could be launched in 2009…2009…2009…(more or less as Whatsapp and much before of Whatsapp Business). A few year ago the Telefonica CEO & GSMA Chair, Jose Maria Pallete said “We should have invented WhatsApp ourselves” but in fact, it was invented by telcos but not launched.
- In order to protect the SMS cash cow, the telco mindset created a list of procrastinating excuses to “buy time internally”. I had to listen many times…”security requires telco provision of services”, “banks and other verticals will never ever use OTT messaging to reach customers”, “it is too soon”, “we can create a new spec with more features before launching”….While ones (telcos) procrastinated others (OTTs) delivered…instead of refining specs with more features, OTTs were adding features iterating with customers. The result is here. Delivering things pays off.
- The 3rd big mistake was the lack of investment. Telcos destroyed the tech ecosystem around RCS not investing nor launching and the only way to rescue RCS was to outsource a key role in Google (acquired Jibe Mobile). Thanks to Google RCS has been launched now but it is still unclear if a potential ecosystem around it could be developed. Hope it will be possible.
What can be done now to make RCS a competitive option in the messaging space?
Basically…put some money and real will of doing things.
- Stop claiming you have 1.1, or 2 billion users until you could say that those users have used “RCS features” different from plain text. Be humble and start working hard-working.
- Advertise and market RCS to help user to discover RCS.
- Speed-up and create easy frameworks to partner with aggregators to create a lot of A2P cases as soon as possible. Also, if you are not the incumbent now, competing is about lowering the price of the incumbent player (Whatsapp).
- Create non-commercial A2P services to help users to discover RCS (info services, chat based tools, chat based games) .
- Embrace AI and data analysis to extract value from messaging.
There are a myriad of possibilities around messaging that a new tech ecosystem can provide but it would need some investment and early PoC with MVP. Telcos are not the owners of the “timing”…the timing is now fast-pacing, it could not take years launch features, services, use cases, we talk about months and ideally weeks.
It makes no sense complaining about OTTs taking benefit from huge telco investments in networks (3G, 4G, 5G, fiber) while not competing in “own services” to save pennies.
Yes telcos, you still can compete, but you may let others help you!
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