Hampshire, UK – The world of over-the-top (OTT) business messaging is set to undergo substantial growth over the next two years, with traffic predicted to increase by 45% globally. According to a recent study by Juniper Research, OTT messaging will soar from 390 billion messages in 2025 to over 560 billion by 2027. WhatsApp plays a significant role in this surge due to its aggressive pricing strategy.
WhatsApp’s ability to offer authentication rates at prices 50–90% lower than traditional application-to-person (A2P) SMS one-time passcodes gives it a competitive edge. This positions WhatsApp to capture a significant share in the market. The strategy initially focuses on securing authentication traffic before transitioning to marketing use cases where the potential for revenue is considerably higher.
“There lies a greater opportunity in upselling to marketing use cases once enterprises adopt the platform for authentication,” underscores Molly Gatford, Senior Research Analyst at Juniper Research. This indicates a tactical approach where WhatsApp could strengthen its lead in business messaging channels by leveraging low authentication rates as a gateway to higher-value services.
For traditional network operators, the rise of WhatsApp represents a call to action. To hold on to their market share, operators must consider adopting new pricing strategies. Juniper Research proposes a use case-based pricing approach for both SMS and Rich Communication Services (RCS) Business Messaging. This approach could entail partnering with providers that can accurately classify messages using advanced technologies, such as AI tools and behavioral analysis.
Implementing a consistent use case-based pricing can help operators showcase RCS’s added value over traditional SMS. This adjustment allows enterprises to make more informed decisions and can help network operators retain their business messaging traffic amidst fierce competition from OTT platforms.
The report by Juniper Research presents comprehensive insights into the A2P & Business Messaging market, providing forecasts across 61 countries for the next five years. It includes a ‘Competitor Leaderboard’ and evaluates future market opportunities. Industry leaders looking to navigate disruption and capitalize on opportunities can access an extract of the report for free download.
This study highlights the dynamic shift in business messaging and the strategies needed to navigate this rapidly evolving landscape. As operators and enterprises adapt to these changes, it presents an opportunity to leverage technology and innovation to seize new opportunities and drive growth in the telecommunications sector.
