Why Mobile Carriers Are Reluctant to Build an RCS Platform

Why Mobile Carriers Are Reluctant to Build an RCS Platform

Josh: And what can be done with RCS is really
driving adoption of RCS globally. And, some operators are still…when you talk
to them, they don’t want to in…there’s two different ways to invest. One is, you know, build it and they will come,
kind of deploy the service, get penetration, bring all the brands. When it starts making money we’re in this
together, more of the revenue-shared model because they still don’t want to invest in
CapEx, so they still don’t want to buy a platform. They want to either launch it from My Cloud,
from a different cloud and then, you know, look at what the revenue looks like in years
three, four, and five as all of these campaigns and brands are starting to use RCS. Derek: Because I’ve heard from a few carriers,
maybe smaller carriers, that somebody there has to make the decision to build it or to
pay for it, and no one wants to really be the one that calls this wrong. So is that kind of… And that’s maybe why they’re looking for alternatives
to kind of pay for it or hybrid models. Like, no one wants to be at the end of the
day. Because it’s still, we’ve heard in the interviews
we’ve been doing, this whole thing can still be destroyed. Like we, as an industry, still can ruin this
thing. So it’s not a foregone conclusion that it’s
gonna happen. So is that somewhat kind of…the carriers
are just waiting till almost the last moment, you know, to really put their necks, somebody
within the carriers to put their necks out there? Josh: Yes. And I think that’s definitely true. And especially in markets where, you know,
we’ve been there, we’ve done that, you know what I mean? Or let’s say we already invested in RCS, you
know, five years ago, it never went anywhere, what’s different about it now? Okay, that’s great, let’s prove it first. So that’s really been the case with talking
to most mobile operators, is they want to start out small. They want to mitigate as much risk as they
can, they want to offset any type of real CapEX or any real spend till later. And they’re not sure, you know what I mean? You know, they’re great at running core networks,
they’re not… You know, you start talking about, okay, and
then you can develop these chatbots and start monetizing them, and working with brands and
SMBs, and they don’t have the capacity. Derek: They’ve never even worked with a brand,
it’s all consumer. Okay. Josh: Exactly. And now this is a business messaging service
versus a consumer messaging service. Or, I’m great at building out eNodeBs and
spectrums and data networks having carrier-grade fault tolerance systems, but selling to businesses
and enterprises and bringing innovative use cases, we haven’t excelled at that in the
past, or I would say that the telcos themselves haven’t. But, I mean, there’s definitely some that
have. I mean there’s some that are pioneering and
leading the way that are very innovative that want to, what I say, climb the stack. So they’ve got their own platform, they want
to work directly with brands, especially the larger brands, and bring these use cases. Derek: Because they’re looking for additional
revenue sources or, you know, selling upstream if, “Hey, if we power all the phones in this
business, why don’t we also power their SMS, their marketing, their communication?” Josh: And a lot of times these are the group
operators that also own media companies, you know what I mean? That also owned, you know, big internet companies
and brands, have their own consumer brand that they’ve kind of built themselves. They’re not just your traditional… Derek: Dumb pipe. Josh: Exactly.

1 Comment

  • Tatango says:

    Watch the full GSMA Mobile World Congress interview with Josh Wigginton, vice president of product management at Interop Technologies, here: https://www.youtube.com/watch?v=VPpM2RpvmjI&list=PL9VHsE18iQ6YB0UMfkR9gU-6ftvPC5gm0&

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