Mobile Messaging: Inside the Collapse of Global SMS Revenue

The cost of SMS messaging has risen significantly since 2021, largely for two reasons:

• Evolving regulations and compliance resulting from the growing threat posed by AIT fraud
• Increasing smartphone penetration, requiring updates to network technology and infrastructure to maintain the customer experience 

These factors have contributed to a large increase in SMS prices, resulting in businesses assessing alternative options for communicating with customers in order to reduce operating costs – and as the above infographic shows, a global collapse in SMS revenue.

Indian Subcontinent will experience a slower decline in SMS revenue, owing to India’s already high propensity to use OTT messaging platforms such as WhatsApp - meaning that SMS revenue will be less affected by the switch from SMS to RCS messaging as an alternative messaging platform is already used.

By contrast, Far East and China will experience the greatest decline in SMS revenue. This can be accounted for by China’s high Apple device penetration, meaning that this region will be most affected by Apple’s support for RCS and, therefore, experience a greater reduction in SMS revenue – meaning that if they wish to stem this loss, mobile operators in this region must ensure that they support RCS.

Source: Global Mobile Messaging Market 2024-2029

Download the Whitepaper: Fraud, Price Wars & RCS: The Decline in SMS