Global operators to lose $3B to OTT channels

Global operators to lose $3B to OTT channels Ryan is a senior editor at TechForge Media with over a decade of experience covering the latest technology and interviewing leading industry figures. He can often be sighted at tech conferences with a strong coffee in one hand and a laptop in the other. If it's geeky, he’s probably into it. Find him on Twitter (@Gadget_Ry) or Mastodon (

A study by Juniper Research has revealed a substantial surge in Over-the-Top (OTT) business messaging.

The report forecasts a staggering increase from 100 billion messages in 2023 to a projected 375 billion messages in 2028. The driving force behind this shift is the diminishing quality of SMS networks, prompting enterprises to explore alternative channels.

The study suggests that the decline in SMS network quality is attributed to the growing prevalence of fraud, coupled with rising SMS prices implemented by operators to sustain revenue in the face of slowing demand for business messaging traffic.

As a result, the report predicts that global operators will witness a substantial loss of over $3 billion in SMS business messaging revenue to OTT channels over the next five years.

Key to the growth of OTT business messaging is pricing strategy. With SMS market growth plateauing, the report recommends that OTT app vendors adopt pricing strategies that entice high-spending enterprises away from traditional SMS channels.

The suggested approach for pricing strategies involves differentiating for various uses, including charging a premium for mission-critical traffic such as Multi-factor Authentication (MFA).

Retail emerges as a significant player in the OTT business messaging landscape, with the report forecasting a remarkable growth in spending from $790 million globally in 2023 to over $2.6 billion by 2028.

The study advocates for OTT messaging vendors to integrate data from diverse retail channels into their business messaging activities, positioning their apps as crucial components of retailers’ eCommerce strategies. The report emphasises the importance of integrating payment capabilities directly into OTT messaging apps to enhance their value proposition.

Juniper Research’s full report is available here (paywall)

(Photo by Adem AY on Unsplash)

See also: Qualcomm cuts satellite-to-phone partnership with Iridium

Looking to revamp your digital transformation strategy? Learn more about Digital Transformation Week taking place in Amsterdam, California, and London.

Explore other upcoming enterprise technology events and webinars powered by TechForge here.

Tags: , , , , , , , , , ,

View Comments
Leave a comment

Leave a Reply

Your email address will not be published. Required fields are marked *