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Why is SMS Still Growing?

Rajdip Gupta, Founder & Group CEO, Route Mobile Limited
Monday, November 14, 2016
Rajdip Gupta, Founder & Group CEO, Route Mobile Limited
Headquartered in Mumbai, Route Mobile is a leading messaging and voice API company. The unique innovations are effectively tuned with the client's specifications to give them one-up advantage over their competitors.

It’s been 24 years since the first message, a simple ‘Merry Christmas’- was sent over the Vodafone network on December 3rd 1992 by a 22-year-old Canadian test engineer to the phone of one Richard Jarvis. SMS has survived the test of time and has become integral to our communication. But will it continue to withstand the onslaught of other messaging services like OTT ones (Whatsapp, Facebook, Snapchat) or even email?

At Route Mobile, we took a bet on SMS twelve years ago. We built our own technologies (SMPP Platform, SMS Centre etc) and started catering to the international market. We are happy that this bet has paid off. On the back on high volumes and increasing subscriber base in emerging markets for the last 5 years, we’ve grown at quick pace.

Opportunities: SMS is categorized into P2P (Peer To Peer, message from one person to another) and A2P (Application to Peer, message generated from a software/machine to a person(s) According to Juniper Research, by 2017, SMS traffic is expected to reach 12 trillion messages per annum. Revenues are expected to be in the vicinity of $192 billion per annum in 2017. Despite the proliferation of other messaging technologies, the industry is growing at about 7 percent per annum. Let’s consider what’s driving this growth.

Despite being one of the oldest messaging technologies, SMS still remains one of the major forms of mobile messaging and a key part of MNO (Mobile Network Operator) service revenues. One word that is unanimously quoted as being the reason for the success of SMS is ubiquity. This has clearly proven to be its greatest strength. In less than 3 decades, the mobile phones in use have grown from zero to more than 7 billion; and every one of these phones supports SMS. The other strength is Reliability. SMS doesn’t depend on mobile broadband or any data connection to deliver a message, unlike IM and social messaging. There is no sign-up needed, no internet data connection and one, potentially, has limitless access to message anyone with a mobile phone.

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