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A2P SMS Gains Popularity Among Business Organizations: Telefonica

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A2P SMS Gains Popularity Among Business Organizations: Telefonica

The global use of SMS as a channel for business communications will continue to grow over the next 10 years, according to a report released today by Telefónica. The report, a study of SMS market in 2015, added that more organizations adopt A2P (Application to Person) services and integrate them into their digital communications.

M2M

The SMS reach 99.99% of mobile devices globally and has 90% read rate in minutes. In Latin America and Asia, around 8.3 trillion text messages are sent annually. James Lasbrey, Global Head of Messaging at Telefónica, said the report shows that despite the enormous popularity of the app economy for P2P (person-to-person) communications, the size and scale of opportunity in the SMS market have solidified its position as a valuable and attractive market for businesses, evidenced by 22 per cent global growth in the A2P or bulk SMS market in 2014-15.

“The value of 1-to-many business messaging has hit its stride in a big way. Text messaging has been part of our lives for more than 20 years, making it an intuitive, trusted and effective form of communication for most people. While the market has developed with the success of free apps such as WhatsApp, Snapchat and Facebook Messenger, the potential of SMS for business is unrivaled.  I expect to see wide scale adoption of A2P by businesses worldwide looking to communicate effectively with customers to 2025 and beyond,” he said.

The popularity of SMS also depends on a factor that the receiver doesn’t have to download and subscribe to any particular application. Furthermore, the A2P market is expected to grow to 2.19 trillion messages and US$ 50 billion in revenue by 2018. A broad range of industries including SMEs and government bodies, capitalize on its potential.

“Interestingly nearly one-quarter of consumers have never received an SMS from a business, indicating an opportunity for continued growth in this channel. Our focus is on developing a framework for a clean and transparent ecosystem to ensure a sustainable future of messaging,” added Joanne Lacey, COO of MEF, who also contributed to the report.

Ria Lakshman. V is a lead news writer at The Telecom Times. She studied Journalism at Manipal School of Communication and proceeded to work in newspapers and magazines, with technology as her focus area. Passionate about Telecommunications sector, her move to 'The Telecom Times' was a natural choice. Alongside, she also writes for Telecom Talk, where she covers news and tech commentaries in the sector of telecom. In the free time, Ria loves to go camping, read books, or sketch illustrations. She also runs a local design studio and promotes eco-friendly crafts. Ria can be found sharing her knowledge and insights on Twitter.

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