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Is there a future for SMS?

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SMS is the living dead of communications. Drown it, set it on fire, throw it off a cliff; nothing can kill it. Despite years of business leaders foretelling the death and replacement of SMS, it’s still here and making money. So, what gives this simple means of communicating its seeming immortality and unmatched strength?

Let’s start by understanding what SMS is.

SMS (Short Message Service) is native, short text technology built into the architecture of telecommunications networks. Using standardised phone protocols defined by the Global System for Mobile Communications (GSM), SMS is, by default, featured on every mobile phone.

The first SMS was sent in the UK in 1992 by Neil Papworth, a Vodafone software programmer. It paved the way for new technologies like messaging apps. It also spawned emojis and ICYMI, launched an unprecedented language transformation. Abbreviations took over as people tried to say as much as possible in 160 characters. It may be surprising that SMS has lived this long, considering its character limit, but it has several superpowers that keep it on top.

What makes SMS indomitable?

As mentioned, SMS exists on every mobile phone, giving it unbeatable coverage. Also, it’s a rapid means of communication. That’s likely why the UK government chose flash SMS (a type of SMS) as the means for its new emergency alert system.

In April, an SMS went out to all UK citizens simultaneously. It was a test of the UK Government’s new alert system. In the event of a real threat to life, the alert would contain instructions on what citizens should do. Using SMS meant people got the message quickly, even those without an internet signal.

Having a means of communicating that’s not reliant on data or WIFI is essential for time-sensitive notifications. There’s no point sending a Whatsapp message to someone about a forest fire where they’re camping if they must travel to an area with a WIFI signal to read the warning.

However, the true, commercial value of SMS is how much people trust it. SMS has very high open rates. According to HubSpot, emails have a 33% openrate and messaging apps have openrates as high as 80%, but SMS has openrates as high as 98%, according to reports. This trust is undoubtedly a key factor in why SMS endures. Having such a trusted channel of communication is a gold mine for businesses.

How can businesses capitalise on SMS?

When Over The Top (OTT) messaging apps like Whatsapp began dominating person-to-person (P2P) messaging, SMS found new life in application-to-person (A2P) messaging. A2P messaging has boomed in recent years, supporting simple business communications like two-factor authentications, order confirmations, or delivery notifications.

Global A2P SMS revenue

(Statistica: 2023)

A2P SMS messaging has become a huge growth market. Since 2020, Global A2P revenue grew by 39% between 2020 and 2023, and its growth is expected to continue for years. While OTT players may want to steal the A2P market, they can’t match the large-scale distribution and time-responsiveness of SMS.

Douglas Bryce

“Due to its ubiquity, simplicity, and timeliness, and the immeasurable trust people have in it, SMS clearly has a bright future. It’s also probably fair to say that in the event of another global pandemic or a catastrophic climate event, the government will more heavily rely on critical communications via an SMS.”

Douglas Bryce, Marketing Communication Specialist at Squire Technologies

To learn more about our Mirus Messaging Platform, visit www.squire-technologies.co.uk/mirus

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