The decision of Apple to integrate Rich Communication Services (RCS) across its iPhone and broader device portfolio is set to revolutionize the messaging ecosystem, GSMA Intelligence report said.
Previously, RCS had been a Google-led initiative following its 2015 acquisition of Jibe Mobile, focusing exclusively on the Android ecosystem.
While the Android user base is significantly larger than Apple’s, RCS adoption was limited because it required activation and was only functional between Android devices.
Apple’s inclusion of RCS bridges the gap between iOS and Android, establishing RCS as a major alternative to platforms like WhatsApp. The decision aligns Apple and Google on the RCS standard, enabling their respective users to securely exchange messages without reliance on SMS/MMS or over-the-top (OTT) options.
Apple’s entry significantly expands RCS’s reach, as its 30 percent global smartphone market share adds to Android’s 4.5 billion devices.
With RCS available for iOS 18.0 or later, an estimated 25–30 percent of iPhones have already updated to this version, creating an addressable base of around 540 million people. Combined with Android, over 5 billion users could access RCS capabilities. However, the addressable base does not equate to an active user base.
As of 2023, RCS had 1 billion active users, approximately 20 percent of the Android base, with further limitations stemming from mobile operators that do not yet support RCS. Despite these constraints, Apple’s adoption is expected to accelerate growth in active users, driven by the interoperability between iOS and Android devices, Tim Hatt, Head of Research and Consulting at GSMA Intelligence, said in the report.
Another report said the global A2P messaging market size is projected to reach $97.84 billion in 2032 from $71.49 billion in 2024 and $68.74 billion in 2023, growing at a CAGR of 4.2 percent over the forecast period (2024-2032).
Challenges
The adoption of a converged RCS standard by both Apple and Google necessitates a new provisioning solution to authenticate devices. This involves the use of entitlement servers, which securely authenticate and activate RCS on devices operating within mobile networks that support the service.
For instance, Motive’s entitlement server, developed in collaboration with Google, adheres to GSMA RCS standards and complies with Apple’s ACME and Android’s TS.43 specifications. These technical advancements ensure seamless integration and functionality of RCS across diverse ecosystems, reinforcing its potential as a universal messaging solution.
GSMA Intelligence highlights the significant implications of Apple’s adoption of Rich Communication Services (RCS), which provides a substantial boost to the platform’s scalability and network effects. With a global iPhone market share of 30 percent, and even higher in advanced economies like the US and Europe, Apple’s support extends RCS’s reach across a broader audience. RCS, a telco-led initiative aimed at regaining relevance in messaging from over-the-top (OTT) platforms like WhatsApp, is unlikely to replace OTTs significantly.
However, even a modest increase in RCS usage is impactful due to the newly enabled Apple-Android messaging interoperability. On the business side, RCS Business Messaging (RBM) holds more significant revenue potential, addressing security risks like grey market fraud associated with Application-to-Person (A2P) and OTT messaging options.
Suggestions
Operators must ensure proper provisioning systems by 2025 to activate RCS on compatible devices. The increasing adoption of iOS 18, alongside updates from Samsung and other Android OEMs, emphasizes the need for early deployment of entitlement servers to gain a competitive edge.
Beyond RCS, entitlement servers also enable provisioning for technologies such as eSIM, direct-to-cell satellite connectivity, Open Gateway CAMARA APIs, and SIM-based security checks, amplifying their value.
Android, accounting for 90 percent of the RCS addressable user base, remains important to the messaging platform’s growth. With RCS now supporting Apple devices, cross-platform messaging is enabled, incentivizing Android OEMs to innovate and enhance features. Google, as the primary driver of RCS, can benefit from collaboration with Samsung and Apple to ensure relevance against competing OTT options.
For Apple, RCS complements iMessage and aids compliance with the EU’s Digital Markets Act, which mandates interoperability in digital services. Maintaining RCS compatibility in future iOS updates and aligning with entitlement server platforms will ensure seamless integration for devices like iPhones, iPads, and Apple Watches on telco networks supporting RCS.
Baburajan Kizhakedath
