Whatsapp Killer!

SMS is about to get a gigantic upgrade. Today, the GSMA
announced that it has it is aligning with global
telecommunications companies and Google to adopt a
universal rich communication services profile that will be
embodied in an all new messaging client that will be
provided by Google, via Android. According to the official
statement from the GSMA;
“The initiative will enable all operators worldwide to
provide an open, consistent, and globally interoperable
messaging service across Android devices. Operators
have agreed to transition toward a common, universal
profile based on the GSMA’s RCS specifications and an
Android RCS client provided by Google in collaboration
with operators and OEMs.”
This is a very interesting development, when taken
together with a number of simmering tensions in the
global communications industry. WhatsApp alone now
processes more than twice the amount of messages that
flow through the global SMS channels every year.
In January 2016, WhatsApp announced that it had
achieved 1 billion monthly active users. Over the top
(OTT) messaging via chat apps is getting smarter and is
enabling richer experiences for consumers, and immense
advertising opportunities for the companies that own
them. Facebook is said to be introducing ads into its
Messenger product that has more than 800 million active
users. Facebook owns a total of nearly 2 billion active
connections in its messaging apps. Other OTT messaging
apps like WeChat, Line, Viber and more have sidelined
SMS (and SMS revenues) by becoming the default way
that people text each other, among other things.
Telcos are not participating in any of this bounty, and are
not amused. They have responded by grumbling to their
host governments to regulate OTT services on the grounds
that they hurt their business while contributing nothing to
developing and maintaining critical communications
infrastructure. But this new alliance with the GSMA and
Google suggests that they are adopting a new disrupt the
disrupter tactic. They are essentially building their own
global WhatsApp. The emphasis on the next quote is
mine.
“By aligning on a universal RCS profile, mobile operators
will be able to deploy a consistent RCS implementation,
feature set, and configuration. The Android RCS client
provided by Google will be based on the universal profile,
enabling consumers to access RCS services on their
devices. Features such as group chat, high-res photo
sharing, read receipts, and more, will now become part of
the operator messaging experience, enhancing the
experience of over 4 billion SMS users worldwide. GSMA
RCS advanced calling features will also be supported in
the future by Google.”
The telcos are being abetted by Google, which has a LOT
of incentive to do so. Android holds more than 80 percent
share of the smartphone market. But Google doesn’t have
any real dog in the messaging space. It missed out on
social, and it’s about to lose out on messaging before it
was apparent that there was even a race to begin with.
“In the global rollout of RCS, mobile operators can deploy
their own infrastructure or they have the option to use the
Jibe Platform from Google, which supports the universal
RCS profile. The Jibe Platform includes a hosted cloud for
individual operators to launch RCS services for all leading
mobile operating systems and the Jibe Hub to
interconnect operator RCS networks.”
The move to form a Android-powered messaging Voltron
raises questions about what happens to non-Android
devices? Windows Phone is fading, and if BlackBerry
manages to stay in the smartphone business, it doesn’t
make sense to not adopt Android.
The new RCS standard will obviously not be backward
compatible to feature phones, which still constitute a
significant chunk of mobile devices. But feature phone
users are upgrading fast, and yearly shipments are on the
decline. However, until every single device is a
“smartphone”, the current iteration of SMS will still remain
the lowest common denominator.
The participating entities in the new RCS standard include
América Móvil, Bharti Airtel Ltd, Deutsche Telekom,
Etisalat, Globe Telecom, KPN, Millicom, MTN, Orange,
PLAY, Smart Communications, Sprint, Telenor Group,
TeliaSonera, Telstra, TIM, Turkcell, VimpelCom, Vodafone,
the GSMA, and Google.
Apple already has its own proprietary iMessage format,
and will likely stand aloof from this new global messaging
alliance.