RCS, the next generation of SMS, is the New OTT Platform

Messaging as the Preferred Channel for Brand Communication

Messaging has become the preferred way for consumers to interact with brands. Customers expect fast, personal, and interactive conversations across channels they already use daily. However, business messaging can no longer rely solely on plain-text SMS, which lacks rich media and two-way interaction.

That said, SMS has not lost its relevance. In fact, it still offers the widest global reach of any messaging channel. SMS works on every mobile phone, without requiring app downloads or internet access. When brands enhance SMS with richer capabilities similar to OTT apps, they unlock a broader audience and deliver modern messaging experiences at scale.

SMS as a Foundation Within the RCS Ecosystem

SMS reaches over 5 billion active users worldwide, far surpassing even the largest OTT apps. WhatsApp, for example, serves just over 2 billion users globally. Many consumers also prefer not to download new apps or manage multiple platforms.

This is where Rich Communication Services (RCS) comes into play. RCS enhances the native SMS experience by adding features commonly found in OTT messaging apps. These include high-resolution images, videos, location sharing, read receipts, typing indicators, and group chats.

RCS works directly within Android Messages and Samsung Messages, which already serve as default SMS apps on Android devices. While RCS acts as the messaging standard for 5G networks, it also functions seamlessly on 3G and 4G connections. This compatibility ensures wide accessibility without disrupting existing user behavior.

Understanding RCS Business Messaging (RBM)

RCS Business Messaging (RBM) refers to Application-to-Person (A2P) and Person-to-Application (P2A) communication powered by RCS features. RBM allows brands to deliver rich, branded, and interactive experiences through the phone’s native messaging app.

Businesses can include brand logos, verified sender badges, rich cards, carousels, suggested replies, and action buttons. These elements remove friction and guide customers through conversations without requiring manual input. Suggested actions can trigger calls, open websites, or create calendar events directly from the message.

RBM also supports chatbots, enabling automated customer service, sales assistance, and support flows similar to WhatsApp or Telegram. RCS uses strong security and encryption standards, making it suitable for sensitive business communication.

Although Apple has not yet fully adopted RCS, the technology’s role as a 5G messaging standard keeps industry optimism high. Currently, more than 700 million users already use RCS worldwide, and adoption continues to grow rapidly.

Carrier Adoption and Monetization Opportunities

RBM creates new monetization opportunities for mobile network operators. Major global carriers such as T-Mobile, Verizon, Vodafone, Orange, BT, Telefonica, Airtel, Jio, Softbank, and Docomo have already deployed RBM at scale.

Many other carriers across Europe, the Americas, Africa, and Asia continue to roll out RCS infrastructure. To enable RBM, operators deploy RCS servers and Messaging-as-a-Platform (MaaP) solutions from providers like Google, Mavenir, Dotgo, and WIT Software.

Google and Dotgo also offer cloud-based platforms with managed services. These solutions help carriers accelerate deployment and simplify RBM monetization for enterprise use cases.

RCS and API-Driven Integration

As RCS adoption expands, brands increasingly migrate from traditional SMS to RCS using APIs. Leading CPaaS providers such as Twilio, Sinch, Infobip, and Gupshup offer RCS APIs that integrate directly into business applications.

Through these APIs, brands support multiple use cases:

Transactional Messaging

A2P messages for alerts, notifications, one-time passwords, and service updates.

Marketing and Promotional Messaging

Campaigns that include product launches, discounts, coupons, and personalized offers.

Conversational Messaging

Two-way communication through chatbots or live agents for sales, customer support, and engagement.

This API-first approach allows brands to manage RCS alongside SMS, WhatsApp, and other channels within a unified messaging strategy.

Pricing Models and Commercial Advantages

RCS introduces flexible and competitive pricing models. Person-to-Person (P2P) messaging remains free, similar to OTT platforms. For A2P and P2A messaging, many providers apply conversation-based pricing, where all messages within a 24-hour window fall under a single charge.

For services like OTP delivery and transactional alerts, RCS pricing often matches or closely aligns with SMS rates. Additionally, RCS uses pay-on-delivery pricing, meaning brands only pay for messages that reach the recipient successfully.

Because RCS supports longer messages, brands can avoid multipart SMS fees. This consolidation reduces overall messaging costs while improving message clarity and engagement.

Market Outlook and Future Growth

Industry analysts recognize RCS as a major growth driver in business messaging. Research firms such as Juniper Research and MobileSquared project significant expansion over the next few years.

Mobile Squared forecasts that RCS and RBM users will reach 5 billion by 2028, with global RBM traffic exceeding 1.2 trillion messages annually. These projections highlight the massive untapped potential of RCS as a universal, rich, and secure messaging channel.