Mobilesquared's 5 slide overview of business messaging, looking at RCS, SMS, and WhatsApp

1. A snappy business
messaging update
25 February 2019
Nick Lane
Chief Insight Analyst, Mobilesquared
nick@mobilesquared.co.uk
@Mobilesquared

2. TOTAL DEVICES
Mobile operator messaging perspective
MESSAGING POTENTIAL JAN 2019
1 bil
2 bil
3 bil
4 bil
4 bil
M
O
B
I
L
E
O
P
E
R
A
T
O
R
M
E
S
S
A
G
I
N
G
R
C
S
MESSAGING POTENTIAL
USERS
RCS
A
N
D
R
O
I
D
S
M
A
R
T
P
H
O
N
E
S
A
B
C
3.5 bil
2.8 bil
0.9 bil
0.7 bil

3. Business messaging spend (US$)
MESSAGING APPS END 2018, ARPU
5 bil
10 bil
15 bil
20 bil
SMS ARPU
US$3.61
Mobile operators dominate business messaging revenues
OTT ARPU ?
US$17.02

4. Total business messaging (SMS + RCS)
INCOME (US$)
-
5
10
15
20
25
30
35
40
45
2018 2019 2020 2021 2022 2023
Billions
Total A2P SMS spend RCS @Mobilesquared
US$41.4

5. The WhatsApp juggernaut
-
2
4
6
8
10
12
2018 2019 2020 2021 2022 2023
Billions
WhatsApp for Business revenues (US$)
Data to emphasise WhatsApp threat only!
Forecasts based on:
3 million registered businesses (end 2018) growing at
20% year-on-year during forecast period
MaB (Monthly active Business) = 33% per year.
Average sized database of 2,500 year-on-year.
Avg message cost $0.03472, based on avg cost in
launch markets, applied throughout.
In this scenario WhatsApp for Business will:
enjoy spend 18 times higher than RCS by the end of
2019.
Will generate a higher ARPU than SMS in 2021.
Cumulative spend of $30 billion on WhatsApp
during forecast period.
Nb Mobilesquared’s actual forecasts on WhatsApp for Business will be published in September 2019
7.2
5
3.5
2.4
1.7
0.4
ARPU