OMDIA-5G消息推动生态系统创新（英文）-2021.1-22页_457kb

5G Messaging Summary

Core Content

5G messaging represents a significant opportunity for telcos to innovate, consolidate their messaging services, and generate ongoing revenue across consumer, enterprise, and IoT markets. It is positioned as a modernization of legacy SMS and a platform for richer, more interactive communication experiences.

Main Points

1. Role of 5G Messaging in Telco Ecosystem

• SMS Continuity: Despite the rise of messaging apps, SMS remains a critical service due to its universal availability, reliability, and low cost. Telcos must support SMS in 5G to maintain its relevance for both consumers and enterprises.
• 5G Rich Messaging (RCS): This is the upgraded version of SMS, offering features such as rich media, chatbots, payments, and more. It is defined by the GSMA's RCS Universal Profile (UP) 2.5 and is designed to be a universal, interoperable service.
• IoT Messaging: Messaging will continue to be a vital component in IoT communication, especially with the growth of MIoT (Massive IoT). It enables machine-to-machine (M2M) and machine-to-person (M2P) interactions.

2. 5G Messaging Ecosystem and Innovation

• Ecosystem Development: An ecosystem is forming around 5G messaging, involving service providers, vendors, application developers, and brands. This ecosystem is likely to include many existing players in the SMS space, as well as new participants.
• Business Models: Telcos can develop new revenue streams by offering enhanced user experiences (e.g., 5G rich messaging), creating new services, and leveraging existing SMS infrastructure through A2P SMS and RBM.
• Interoperability and Standards: 5G messaging must comply with industry standards such as 3GPP's R15, R16, R17, and the GSMA's RCS specifications. This ensures compatibility with legacy and future networks, and supports the transition from SMS to richer messaging.

3. Market Growth and Adoption

• 5G Subscriber Growth: By end-2020, there were 236 million 5G subscribers globally, expected to grow to over 3 billion by 2025. This rapid growth creates a large addressable market for 5G messaging.
• SMS Traffic and Revenue: Global SMS traffic is forecast to reach 8.3 trillion messages by 2025, with A2P SMS revenue growing from $79 billion in 2020 to $103 billion in 2025.
• IoT Market Potential: The IoT market is expected to grow significantly, with connected devices increasing from 12.7 billion in 2020 to 25.44 billion in 2024. Messaging will be a key enabler for MIoT, driving connectivity and revenue growth.

4. Key Features of 5G Rich Messaging

• Universal and Interoperable: Unlike messaging apps, RCS is a universal service that can be used across all devices and networks, ensuring interoperability.
• Rich Interactions: Supports features like chatbots, rich media, payments, and authentication, enabling more engaging and functional communication.
• Fallback to SMS: Offers a fallback mechanism to SMS or MMS, ensuring continuity for users who may not support rich messaging.

5. China Mobile Case Study

• Early Adoption: China Mobile was among the first to deploy a 5G Message Center (5GMC), which has over 100 million active users.
• Ecosystem Development: It has helped develop 5G rich messaging services for brands, enabling over 300 chatbots, and is building an ecosystem with developers, handset manufacturers, and brands.

Key Recommendations

• Build Ecosystems: Telcos should collaborate with service providers, vendors, and developers to create new 5G messaging-based services and business models.
• Support SMS in 5G: Continue to support SMS in 5G networks due to its universal availability and ongoing demand.
• Focus on A2P and RBM: Prioritize A2P SMS and RCS Business Messaging (RBM) to drive messaging revenues in the 5G era.
• Leverage IoT Messaging: Develop 5G messaging strategies that include IoT use cases to capitalize on the growing MIoT market.
• Adopt Cloud-Based NFV Architecture: Utilize cloud-based network function virtualization (NFV) to deliver scalable and cost-effective 5G message centers (5GMCs).

Summary of 5G Messaging Components

Conclusion

5G messaging offers telcos a unique opportunity to innovate, generate revenue, and maintain their relevance in the evolving communications landscape. While messaging apps have disrupted traditional SMS services, 5G messaging provides a structured, standards-based upgrade path that ensures interoperability, security, and scalability. The development of a robust ecosystem, including support for A2P SMS and RBM, as well as integration with IoT services, will be crucial for telcos to realize the full potential of 5G messaging.