MNOs, Wake Up: A2P/Business Messaging Is Your Golden Ticket, and RCS Business Messaging (RBM Is Your Last Chance)

Mobile Network Operators (MNOs), listen up: the Application-to-Person (A2P) messaging market is a goldmine, served up to you on a silver platter. I’ve been doing my bit by educating the market on this for getting on for 15 years now but if you don’t act fast, over-the-top (OTT) players like WhatsApp Business will snatch it away. Google’s RCS Business Messaging (RBM) is your best shot at staying in the game, but the countdown clock’s ticking loudly. Industry analysts Mobilesquared are sounding the alarm: Google’s patience with MNOs is wearing thin. And this is something I’ve been mentioning myself for some time already, and indeed seen with my own eyes, running regular workshops with MNOs around the world as I do.

If you don’t accelerate RBM adoption in the next couple of years, Google could pivot to a direct-to-enterprise OTT play, cutting you – and the aggregators/CPaaS players (whatever they want to be called!) – out of the picture entirely. That’s a loss you won’t recover from.

The A2P Opportunity Is Massive – And You’re Already Halfway There

A2P messaging is a cash cow, with several trillion (that’s thousand billion) messages sent globally each year and no signs of slowing. Businesses in the know love it because it’s direct, reliable, and lands right in customers’ pockets.

There’s still a huge amount of educational work to be done though telling businesses about the powers of A2P messaging done well.  As an MNO, you’ve got the infrastructure, the customer base, and the trust to dominate this space. Just look at the recognition your brand names have! You’re already in the driver’s seat. So why are you letting OTT apps like WhatsApp Business steal business from right under you noses?

The OTT Threat Is Eating Your Lunch

Let’s be real: WhatsApp Business, Viber, and their cousins are coming for your A2P revenue. These platforms are (for the most part) cheap, feature-rich, and already have customers hooked. With over 2 billion users, WhatsApp Business offers businesses interactive messaging – buttons, images, chatbots – that throw serious shade on SMS. Businesses are flocking to OTT channels because they’re faster, glitzier, and often cheaper, especially for international messaging. If you think your SMS monopoly is safe, you’re dreaming.

We’ve all seen analysts’ charts showing the acceleration in A2P growth expected in the coming few years and if you look under the hood, the majority of this growth is set to come from WhatsApp Business. Not MNO-based channels then. You need to step up to change this projection.

A2P SMS Is Losing Ground Fast

SMS still has its strengths – universal reach (over 6 billion people now according to the GSMA), no app download needed, no mobile data or Wi-Fi required, and works on any phone. You know how much of a fan of A2P SMS I am, but even I can see its grip is slipping. It’s getting hammered from multiple angles.

First, pricing is a nightmare. International A2P SMS costs are sky-high, and constant price changes make it impossible for enterprises to plan their SMS marketing budgets a year in advance like they used to be able to. The days of stable, predictable costs are mostly gone in a lot of countries, leaving businesses frustrated and looking for alternatives. Some countries, however, continue to get it right. Think my home country, the UK, where volumes continue to increase as pricing is most reasonable. Add to that SMS’s lack of rich media and interactivity, and it’s no wonder a lot of companies are eyeing OTT platforms that offer video, voice, and real-time engagement for less. And then there’s regulation. Oh my…

Increasingly stringent rules around two-factor authentication (2FA) are shrinking A2P SMS traffic. For example, on July 25^th, the Central Bank of the UAE will began implementing a major security change: banks will no longer send one-time passwords (OTPs) via SMS or email for credit and debit card transactions. Instead, institutions must adopt stronger authentication methods, such as in-app notifications or tokenised authentication flows. New compliance requirements and restrictions on unsolicited messaging are forcing businesses to rethink their reliance on SMS for 2FA and other use cases.

The maths is clear: why stick with an expensive, limited, and increasingly regulated channel when OTT alternatives are eating your lunch?

RCS Business Messaging: Your Not-So-Secret Weapon (For Now)

Enter Google’s RCS Business Messaging (RBM) stage right, your lifeline to stay relevant. RBM isn’t just an upgrade – it’s a game-changer, mixing SMS’s ubiquity with OTT’s rich features. Fancy images, videos, carousels, quick-reply buttons, and end-to-end tracking, all delivered over your network. It’s like SMS got a makeover from Space X. Google’s pushing RBM hard because it’s a win-win: organisations get engaging tools to reach stakeholders, and you keep a big chunk of the revenue instead of handing it to WhatsApp or Telegram. RCS works natively on Android (and Apple’s inching toward support with iOS 18). No app downloads needed, your customers are already on your network.

One thing I have to say here – something that I hardly hear being mentioned by anybody – is that Google is not pushing RBM for the good of its own health. Sure, it loves the data it is seeing but it also wants to make some money directly from RBM too so will at some point begin charging MNOs for the pleasure. I’m hearing something in the region of a 20% chunk of revenues….

Google’s Patience Is Running Out

Google won’t wait forever. I see it myself, as do others. Google is frustrated with MNOs’ sluggish RBM adoption. If you don’t step up within the next couple of years, Google’s likely to say, “Forget it,” and go full OTT on you. Picture this: Google offering a direct-to-enterprise RBM platform, bypassing MNOs and aggregators/CPaaS players entirely, just like WhatsApp Business does.

The direct to business offering by WhatsApp has allowed it to hoover up hundreds of thousands of smaller businesses in particular as direct customers. That’s not just a revenue hit – it’s a knockout punch, no standing count, nothing. Clean on the canvas. You’ll lose your slice of the A2P pie, and so will the middlemen who’ve been riding your coattails. Google has the tech, the reach, and the muscle to pull it off. Get ahead of this potential tidal wave though and take control of your own business messaging destiny!

Why You Can’t Afford to Wait

The A2P market isn’t shrinking, but the delivery game is changing fast. Stick with A2P SMS as a standalone, and you’re handing your market share to OTT platforms. Businesses are already ditching SMS for WhatsApp because of unpredictable pricing, regulatory headaches, and limited features. RBM lets you compete head-on with OTT apps while leveraging your existing network. But adopting RBM isn’t just flipping a switch – you need to invest.

Let’s talk about tech: you absolutely need to invest in a MaaP (Messaging as a Platform) solution so you get to see all the data moving between enterprises and Google. You need to train your teams and sell it to businesses. Google’s doing its part with RBM and you’ve got to meet them halfway. Wait too long, and you’ll be left with nothing but regrets when Google goes direct-to-enterprise. And the best way of avoiding this? Partner with established CPaaS type players who know every nuance of RBM and let them do the heavy lifting in return for a slice of the pie. Trying to go it alone will cost you time you simply do not have.

Futureproofing Starts Today

RBM isn’t a sticking plaster – done right, it’s your ticket to futureproofing your business. As 5G rolls out (6G begins to be talked about) and customers demand seamless, interactive communication, RBM positions you as a leader in A2P messaging.

You can charge a premium for rich, trackable messaging while undercutting the frankly absurd international SMS rates I’m seeing in some countries, and navigating the increasingly complicated regulatory maze that’s impacting SMS. If Google flips to an OTT model, you’re out of the equation, and so are the aggregators/CPaaS players. Act now, or prepare to be sidelined.

The Bottom Line

MNOs, the A2P messaging opportunity is yours to lose. OTT platforms like WhatsApp Business are circling, and Google’s RCS Business Messaging is your chance to fight back. But Google’s patience is finite and, mark my words, they will go full OTT on you and cut you out if you don’t move fast. Unpredictable SMS pricing, regulatory crackdowns on 2FA, and SMS’s outdated feature set are killing your edge.

Clinging to an A2P SMS only approach is like betting on a Roman chariot in a Formula 1 race. Embrace RBM, invest in it now, and show businesses you’re serious about delivering what they need. The silver platter’s right there – don’t let Google or anyone else snatch it away. And remember, I’m here to help guide you on every step of your Business Messaging journey. Exactly what I have been doing for well over a decade now and you can see more about me here: https://www.linkedin.com/company/mrconnectivity The time for talk is over. Action is required. Your move.

Guest Author

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