Reclaiming Control: Why MNOs Must Act Now on RCS!

The industry is witnessing a subtle yet significant shift in mobile messaging, spearheaded by Google's vision for Rich Communication Services (RCS). While the promise of enhanced communication features for Android users is apparent, the strategic implications for Mobile Network Operators (MNOs) demand immediate attention.

Our analysis suggests that Google's approach to RCS deployment is attempting to mirror successful over-the-top (OTT) messaging platforms like WhatsApp and Apple iMessage. The deliberate, phased rollout, starting with default integration into Android devices, is designed to cultivate widespread user adoption. This gradual adaptation/acclamation to RCS features makes it increasingly challenging for MNOs to later restrict its use without risking subscriber dissatisfaction.

The data speaks for itself. Over the past year, a substantial portion of MNO subscriber bases – nearing half in many cases – are already utilizing RCS.

When RCS is unavailable, Android devices automatically revert to SMS. Based on our experience, the current RCS feature set is limited enough that when our RCS firewall blocks access, most subscribers accept the fallback with minimal disruption or complaints. However, this dynamic is likely to shift as RCS capabilities expand and users become more dependent on its advanced features.

We contend that MNOs are at a critical juncture. The time is now to gain a comprehensive understanding of the RCS traffic traversing your networks. Implementing robust measurement tools like Mobius’ DataSentry will likely reveal a scale of RCS usage that warrants immediate strategic consideration and attention.

The implications of inaction are clear. Allowing the unchecked growth of RCS risks the erosion of traditional messaging revenues, both Application-to-Person (A2P) and Person-to-Person (P2P). Our experience indicates that proactively blocking RCS can lead to a significant revenue uplift – potentially close to 20% in the A2P segment alone, with a noticeable positive impact on P2P revenue.

The success of WhatsApp's expansive ecosystem, boasting nearly two billion users and diverting substantial revenue away from MNOs and local tax authorities, serves as a potent example. Google's ambition with RCS appears to be a replication of this model within the native Android environment.

However, MNOs still possess the power to shape a different outcome. By acting decisively now – implementing monitoring, understanding usage patterns, and strategically controlling RCS traffic – MNOs can create the leverage needed to engage with Google and other stakeholders. The goal is to foster a collaborative ecosystem that fairly benefits all parties: subscribers, MNOs, tax authorities, and the owners of RCS and Android.

Delay only strengthens the hand of those who seek to replicate the OTT disruption within the core messaging space. The window of opportunity to proactively manage RCS and secure your revenue future is rapidly closing.