Messaging as a Platform The Operator Opportunity - Network 2020 Network 2020 - GSMA
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Network
2020
Network
2020
Messaging as a Platform
The Operator Opportunity
gsma.com/network2020
#network2020
2 3
Network Network
2020 2020
First Edition February 2017
Network
The GSMA represents the interests of mobile
operators worldwide, uniting nearly 800 operators Network
The GSMA’s Network 2020 Programme is designed to help
operators and the wider mobile industry to deliver all-IP
2020 2020
with almost 300 companies in the broader mobile networks so that everyone benefits regardless of where
ecosystem, including handset and device makers, their starting point might be on the journey.
software companies, equipment providers and The programme has three key work-streams focused
internet companies, as well as organisations in on: The development and deployment of IP services,
adjacent industry sectors. The GSMA also produces the evolution of the 4G networks and the 5G Journey,
industry-leading events such as Mobile World developing the next generation of mobile technologies
Congress, Mobile World Congress Shanghai, Mobile and services.
World Congress Americas and the Mobile 360
Series of conferences. For more information, please visit the Network 2020
website at www.gsma.com/network2020
For more information, please visit the GSMA Follow Network 2020 on Twitter: #Network2020.
corporate website at www.gsma.com.
Contents
Follow the GSMA on Twitter: @GSMA
4
What is Messaging as a Platform?
6
Role of Artificial Intelligence
8
Chatbots for Business
10
The Operator Opportunity
12
The Challenge
14
Key Principles for MaaP
16
Building a Successful Ecosystem
18
Enabling Collaboration and Competition
20
Use Case Examples
24
The Value Chain
26
Monetising MaaP
28
Universal Profile for Advanced Messaging
30
GSMA Support
gsma.com/network2020 Messaging as a Platform
#network2020 Copyright© 2017 GSMA The Operator Opportunity
4 5
What is Messaging as a Platform? MaaP is expected to go mainstream in
the next 6-18 months and represents
five apps see heavy use3. The GSMA’s
vision is to establish a common,
an opportunity for operators to expand global and interconnected messaging
Mobile messaging is undergoing customers spend their existing SMS A2P businesses by platform that removes the need for
85% of their
something of a renaissance with
establishing an advanced and flexible multiple messaging apps and delivers
the rise of Messaging as a Platform.
MaaP ecosystem that capitalises on a unified, consistent and engaging user
This is an exciting new area that
their pre-existing customer bases and experience. Through partnerships and
smartphone
represents an incredible opportunity
key assets such as customer trust and industry collaboration operators can
for businesses and mobile network
privacy. However, in order to achieve create a community that can be scaled
operators to increase their
this, they must collaborate with large to almost two billion users by 2020.
engagement with customers. MaaP TIME IN APPS internet players to help develop new This report highlights the key steps
enables communications services
value propositions. Operators are well operators need to take to deploy these
between third party businesses There are already a number of services
positioned to be part of this next wave services.
and customers opening up a range available today such as Apple Siri,
of transformation and the opportunity
of services that utilise chatbots, Amazon Echo, Wechat, Google
is there for to build partnerships and 1
http://www.gartner.com/imagesrv/summits/docs/na/
Plugins, Artificial Intelligence (AI) and Assistant and Facebook Messenger,
engage with new entrants in this customer-360/C360_2011_brochure_FINAL.pdf
industrial applications. This provides however, the majority, with the notable 2
http://www.mobilesquared.co.uk/blog/
emerging space, playing a central
users with direct access to a range of exception of China’s Wechat, are in mobilesquareds-latest-databook-says-mobile-
role and helping to shape its future operators-key-to-unlocking-massive-a2p-messaging-
brands and services from within the their infancy in terms of customer
development. opportunity/
messaging app itself allowing them reach and capability. 3
http://www.businessofapps.com/we-spend-84-of-our-
to engage with virtual assistants to MaaP is an opportunity for operators time-using-just-five-mobile-applications/
Application–to-Person (A2P)
book flights, buy clothes or make to reshape and revitalise their
services, are being upgraded by
restaurant reservations without having messaging services and play a
adding richer message functionality
to download multiple apps. It also central role in the future of IP-based
represents a number of advantages via RCS and a diverse and more
messaging. According to Nielsen,
for businesses who can offer 24/7 flexible range of functions that can
customers spend 85% of their time
‘always on’ services to customers. be taken over by chatbots, which
on smartphones in apps but only
Gartner predicts that by 2020 85% will grow as functionality improves.
of customer interactions will be A2P SMS provides operators with an
managed without a human1. opportunity to migrate ther SMS traffic
to enriched RCS based messaging and By 2020
85% of customer
then further into chatbots. A2P can be
considered the precursor of chatbots
and the first step in creating a full-
fledged chatbot platform. This is a
huge market - Mobilesquared estimate
the chatbot market to be worth $58.75
billion by 20202.
interactions
will be managed without a human
gsma.com/network2020 Messaging as a Platform
#network2020 The Operator Opportunity
6 7
Role of Artificial Intelligence
The development of artificial intelligence has paved the
way for a rise in the number of virtual assistants that are
helping to make our lives a lot easier and change the way
we interact with businesses.
AI based assistants have the ability
to learn and incorporate information
in their knowledge bases as well
as recognise speech and provide
messages. Indeed, Google estimates
that 50% of all searches will be voice
searches by 20204. Amazon’s digital
assistant, Alexa, for example, can tell
you the news, play music or adjust
your lighting or heating settings via
voice commands. Or Apple’s Siri,
which is used for a range of services
including financial transactions. It is a This, in turn, has kick-started the
huge growth area that has seen huge development of chatbot services by
investment from internet giants such third party organisations opening
as Google, Facebook and Microsoft. up the number of services available
More than USD$300 million was to customers. This is no surprise
invested by venture capitalists in considering the Digital Virtual
AI startups in 20145. Assistants market is expected to
be worth USD$15.8 billion in 2021,
according to the consulting firm,
Tractica6. Digital Virtual assistants market
is expected to be worth
USD$15.8in 2021billion
4
https://www.branded3.com/blog/ok-google-give-
stats-voice-search/
5
https://www.bloomberg.com/news/articles/2015-02-
03/i-ll-be-back-the-return-of-artificial-intelligence
6
Virtual Digital Assistants: Virtual Agents, Chatbots, and
Virtual Assistants for Consumer and Enterprise Markets
Utilizing Artificial Intelligence, Natural Language
Processing, and Conversational User Interfaces.
Tractica, L.L.C. 2016
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8 9
Chatbots for Business
A chatbot is an intelligent ‘agent’ or ‘software robot’
that mimics human conversation to communicate with
customers through a messaging interface using artificial
intelligence. It can help enterprises and service providers
add customer value for comparatively little effort by
helping people to send money, order food or book flights
by using simple chat style interactions. It is a fast-growing
market; developers have built over 30,000 bots in six
months for Facebook Messenger7.
Chatbots represent a tremendous Opening hours no longer exist;
opportunity for enterprises and customers are savvier and prefer social
businesses. They provide a simple, media and messaging platforms to
convenient and interactive way of organise their lives. They want a less
connecting directly with customers formal, instant and more personal
on their devices offering a similar touch from businesses. Chatbots are
experience to conversing with a human the answer to this and are the present
agent or employee from a service and future of customer engagement.
based organisation. Chatbots can They augment existing human staff
be purpose built for any messaging to fulfil customer demands.
platform and can support businesses in
ways a human team can’t by offering a According to the consulting firm,
24/7/365 online presence, support and Tractica, there will be an estimated
direct customer engagement. 1.8 billion unique, active chatbot
or virtual assistant users by 20218 and
51% of people expected a
Research by mobile messaging software a market worth more than $600 business to be available to them
24hrs a day
platform, Ubisend, highlighted the billion in revenues by 2020.9 This is
changes in customer behaviour in the an opportunity that operators cannot
internet age. It found that 51% of people afford to miss.
expected a business to be available to
them 24/7, that 45.8% would rather
7
http://newsroom.fb.com/news/2016/09/more-
seamless-more-ways-to-share-more-ways-to-buy- 7days a week
365 days a year
contact a business through messaging more-context-introducing-messenger-platform-v1-2/
than email and 49.4% would rather
8
Virtual Digital Assistants: Virtual Agents, Chatbots, and
Virtual Assistants for Consumer and Enterprise Markets
message than phone. Utilizing Artificial Intelligence, Natural Language
Processing, and Conversational User Interfaces. Tractica,
L.L.C. 2016
9
Inbenta: http://sjstransky.writerfolio.com/
attachments/81067.pdf
gsma.com/network2020 Messaging as a Platform
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The Operator Opportunity
The user base for major IP messaging services is
projected to exceed four billion10 by the end of the year.
This is a larger user base than the
entire social media market and is
approaching parity with the number of
unique mobile subscribers worldwide.
In 2016, the top two over the top
(OTT) IP messaging services both
surpassed a billion active users each.
OTT messaging services are now
becoming platforms to introduce
and monetise other services such as
music, gaming and payments that are The commercialisation of messaging
enhanced by the use of chatbots and platforms has opened up the
AI. This approach is most evident in ecosystem to other suppliers. Adjacent
Asia via providers such as WeChat, industries such as energy, retail,
Line and Kakao. With the emergence automotive, manufacturing and
of chatbots and AI, Facebook, Apple, construction have undergone a digital
Microsoft, Samsung and Amazon transformation in recent years and are
have all begun to establish platforms looking to provide consumers with
to leverage these new innovations digital services that enhance their
choosing to either compete with user experience on top of existing
operator messaging businesses or services as well as improve customer
partner with them by integrating their engagement and increased revenues.
platforms. The third quarter of 2015 saw the
largest amount of venture-capital
activity on record in the mobile sector
which was driven by mobile commerce
as new companies and services like
chatbots continued to emerge and
scale rapidly. Market worth
10
https://www.gsmaintelligence.comresearch/
?file=8750c0890d2671335ceee4b3c19738c0&download
USD$74
by 2021
Billion
gsma.com/network2020 Messaging as a Platform
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The Challenge
The challenge for operators is to seize the opportunity The GSMA’s vision is to establish a
and respond through innovation by reshaping messaging
to build relevant service features for industry partners as “Connected
well as more attractive propositions for their end-users.
standard or platform”
next to existing OTT
According to research by analyst
house, Informa, the rise of OTT
messaging applications means
“Single Islands”.
operators can no longer depend on
person to person SMS revenue, and in
time A2P SMS revenue will also come
under pressure. In future both should
be replaced by launching Advanced
Messaging and augmenting and
migrating the A2P business to the new The large messaging platforms in the
technical basis. Informa estimates that market today are proprietary solutions,
this will be a market worth USD$74 characterised by a few dominant
billion by 2021. players where new entrants find it
difficult to compete. Messaging app
MaaP is an opportunity for operators users can only communicate with
to grow revenue by augmenting and other users of the same app, forcing
then migrating their A2P business to end users to have multiple applications
a new technical basis that offers new installed on their devices. The GSMA’s
capabilities and shares in the revenue vision is to establish a “Connected
generated by new business paradigms standard or platform” next to existing
such as Artificial Intelligence, chatbots OTT “single islands”. Operators could
and in-chat search. If operators do not then offer their own MaaP service
respond quickly to this opportunity, or partner with global platforms to
they could lose out on this part of the enable co-operation models with
communication value chain. different third parties. Operators
are well positioned to be part of this
next wave of transformation and
the opportunity is there for them to
build partnerships and engage with
new entrants in this emerging space,
playing a central role and helping to
shape its future development.
gsma.com/network2020 Messaging as a Platform
#network2020 The Operator Opportunity
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Key Principles for MaaP
MaaP will require a paradigm shift in the way operators
work and require closer relationships with partners
and a mindset shift to deal with them as partners and
not vendors. This has implications for business models,
business architecture and customer experience. The
following principles are essential to ensuring Advanced
Messaging emerges as the communications platform
of choice.
•Openness: Universal access • Reward: Parties in the ecosystem,
for customers and partners such as MNOs and partners will
ensuring all participants can share the rewards according to
contribute to and enjoy a contributed value.
competitive marketplace with • Value: commercial agreements will
simplicity underpinning the underpin access to MNO MaaP.
connection and operation • Transparency: Ensure that
of the platform. participants in the value chain
• Innovation: Increased have visibility of the value flows
competitiveness of new and existing and benefits accrued to each party.
services based on messaging • Privacy: customer privacy and
bringing innovative new products the value of the MNO customer
to market. base shall be protected through
• Reach: Realising the value of the optional anonymity.
global MNO user base, where any
chatbot can reach any advanced
messaging user.
• Quality: Messaging performance
and partner applications and
interactions must adhere to the
highest standards respecting
customer preferences and privacy. operators working
• Protection: MNOs will retain
the ability to control access to its
customers and maintain adherence
in partnership
for benefit of the end user
to standards.
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16 17
Building a Successful Ecosystem
MaaP can’t be created in isolation and requires operators to
develop industry partnerships and work collaboratively with
service providers, internet players and the wider ecosystem
to deliver a business model that can scale globally and
deliver collective long-term commercial success.
In order to compete with the richness can generate revenues from this and
of the experience on other platforms, for access to the customer. It may
operators need to collaborate with be difficult, however, to quantify and
other players in the content and account for this value created outside
devices world in a way that goes of the messaging client.
beyond the current vendor-customer
MaaP is ideally placed to act as an
relationship.
enabler to a potential ecosystem
Successful platforms have often of developers and service providers
prioritised scale over value. in much the same way as Apple,
The ecosystem strategy should Google and Salesforce have with
focus initially on determining the their platform business models.
PAY YOUR
requirements of the platform, the By bringing all operators BILLS
products and services, and the together behind a single MaaP FIND A CHECK THE
partners and collaborators that will strategy a community of RESTAURANT WEATHER
drive uptake and achieve scale. Once almost two billion users
ssaging is th
Me
achieved the core offering will emerge can be created.
and evolve. As scale develops, the A community of this
en
focus can build on the initial value scale gives MaaP the
PLAY ORDER
ew platform
propositions with network effect scale to compete
driving uptake and further creation of at the global GAMES A TAXI
value. level.
The discovery and adoption of
new business models are critical to
capturing value. One of the most
important revenues streams will be in BOOK PLAY MUSIC
building or enhancing “user profiles” A TABLE AND VIDEO
which will lead to personalised MONITOR
advertising and branding. Operators FITNESS
gsma.com/network2020 Messaging as a Platform
Framework
#network2020 The Operator Opportunity
Value for MNOs
by customer
relevance and
18 19
Enabling Collaboration
and Competition
Ecosystems, particularly around platform business
models, require collaboration. However, the realities
of contracting, on-boarding, knowledge sharing and
technical integration all represent challenges, particularly
for operators that have traditionally operated in a ring-
fenced manner where interoperability dominates over
collaboration and commonality.
Players within ecosystems work both metered usage charging; accessible
cooperatively and competitively support and a developer engagement
to support new products, satisfy programme to communicate, educate
customer needs, and eventually and motivate.
incorporate the next round of Collaboration and co-creation within
innovations. Co-operation is the new the ecosystem allows each participant
business model for the platform to access skills and capabilities from
generation and where operators act others to create synergies and achieve
in the role of a platform provider, scale (the co-operation business
they will need to be subject to the model). Each participant has to have
same principles of collaboration and a clear understanding of the role or
competition, no different to third-party roles they can play and a focus on
platform providers. the strategic threats and potential
opportunities that make part-
Successful platforms invest significant ownership of a large platform business
time and resource into generating model more valuable than complete
demand side value. Developers, brands ownership of a small single business
and other demand-side providers model.
need a simple route to connect with
and utilise the platform. This could
take the shape of a standard approach
for connecting chatbot platforms to
operator networks such as a single
contract for services and access
or other forms such as self-service
or one-stop shop usage models;
gsma.com/network2020 Messaging as a Platform
#network2020 The Operator Opportunity20 21
• The seller can have a conversation and insert them into your
Use Case Examples with you to find you the best offer
or product.
conversation exchange with any
contact.
There are a huge number of areas where innovative • Once you have made your choice
third-party services can be supported by chatbots you can confirm and initiate the
or plugins. Here are some examples: payment within the conversation.
• Your retailer will keep you updated
with messages to indicate the Information exchange and media
delivery to you. subscriptions
• After you have received your item • Send a one-off message
Travelling Customer Services and Support you can share a rating and review to anonymously vote in your
• Query your airline about available • Send questions and concerns about the service and the favourite TV show
flights and make a booking through directly to a company about purchased item. • Receive confirmation and
the conversational interface. your subscription through a a reminder about the next
• Receive flight check-in reminders, conversational-based messaging opportunity to vote.
change seat or select your meal interface instead of waiting in a long • Receive an offer to watch premium
in advance. Receive boarding phone queue. Geo-location and calendar-based content e.g. pay and watch the
passes within the conversation • Compose a message with your services video of the winning song through
thread as well as flight status request at your convenience and • Combine location, calendar and the messaging interface
notifications. receive meaningful feedback in public APIs to receive information
return. from a chatbot suggesting
times and routes to your next
destination based on the events Gaming
Mobile Banking in your calendar. For example, • Keep yourself amused with
• Contact your bank and using secure Resource reservation and Personal you could receive a message conversation-based games and
authentication, use financial organisation from the chatbot to let you know puzzles in a gaming chatbot.
services with another bank such • Book a ticket for the cinema, when you have to get on your way • Interaction within a game is saved
as transfer money or request select your movie, your seat and to your next event, with directions, and accessible to be continued at
account balance. finally complete the booking best route, traffic information, and/ your convenience in the messaging
• Inform your bank that you are by triggering the payment and or public transportation details. conversation.
going to a specific foreign location receiving the ticket (e.g. QR code) in • Communicate with others on the
beforehand to pre-authorise foreign your conversation screen. top scoreboard and pay to keep
usage of credit cards. privileges (e.g. gold star for not
• Be reliably contacted by your bank Stickers and other content missing a day).
checking on a suspicious credit card • Browse and download stickers,
charge. Block the card and obtain Shopping & Purchasing pictures, animations or cartoons
new one while taking the necessary • Purchase goods online. Contact the
fraud reporting steps immediately seller and explain exactly what you
from the conversation. want.22 23
you could receive a message
from the chatbot to let you know
when you have to get on your way
Intra-company communication to your next event, with directions, Fitness
• Receive messages from a closed best route, traffic information, and/ • Track fitness using the smartphone’s
user group such as an intra- or public transportation details. activity data and share this with the
company communication designed fitness tracking provider of your
for employees of the same choice.
company. • Receive regular information
• Support confidentiality obligations Location tracking on sports exercises, messages
i.e. communications are not subject • Share your location with close ones of encouragement, health tips
to data mining etc. so that they know where you are. and recipes etc.
• Initiate a voice call to a number • Agree on a meeting venue with
associated with the chatbot owner friends in a group conversation and
during the session. track each other on your way to the Non-conversational
use cases
venue.
Mobile messaging services already
Payment provide the communication
• Pay for products or services with To do lists
infrastructure for many other use cases
end to end encryption within the • Set up and manage shopping lists
that do not require chatbots,
messaging app. or to-do list within a 1-to-1 or group
for example:-
• These interactions can have conversation.
different levels of authentication • Cross off items once they are
based on the service (i.e. buying a purchased or completed and share
sticker can occur anonymously, but the list with contacts as desired.
Appointment alerted service
transacting with your bank account
management
requires higher levels of security).
• Get reminders on tasks that need to
Geo-location and calendar-based be completed.
services. Voting and polls
• Combine location, calendar and • Set up a poll or quiz for invited
public APIs to receive information contacts to participate in.
from a chatbot suggesting Promotional codes
times and routes to your next • Receive marketing messages that
destination based on the events contain brand logos and images
in your calendar. For example, Translation of products as well as promotional
• Translate text in any language as codes.
you type.
gsma.com/network2020 Messaging as a Platform
#network2020 The Operator Opportunity24 25
The Value Chain
The user base for major IP messaging services is
projected to exceed four billion11 by the end of the year.
This is a larger user base than the entire social media
market and is approaching parity with the number of
unique mobile subscribers worldwide.
Ensuring openness in the ecosystem Operators should consider an agreed
provides the opportunity for increased contractual and technical framework
competition and innovation of new or set of principles in order to provide
services, especially in cooperation with a consistent entry point to the MaaP
local and global partners or operators ecosystem regardless of which operator
who will provide platforms on top an A2P partner contracts with.
of Advanced Messaging. Operators
are strongly positioned in the value
chain. The chatbot platform can be a
content provider and may provide the
messaging backend to the operator. If
an operator takes the role of a chatbot
Store or A2P partner and distributes
content across other networks, they
must enter into equivalent agreements
with other operators as any other
chatbot platform would do.
gsma.com/network2020 11
https://www.gsmaintelligence.comresearch/ Messaging as a Platform
#network2020 ?file=8750c0890d2671335ceee4b3c19738c0&download The Operator Opportunity26 27
Monetising MaaP
There are two key models for monetising MaaP which are
direct and indirect based revenue models. A direct-based
model is where an operator collects value directly from
a user or content owner either through charging for the
messages or charging for the content of messages. The
indirect model is where the value is collected elsewhere
in the ecosystem, for example by a chatbot, Plugin
developer or AI and a share of the revenue is received
by the operator.
Operators currently enjoy a 100% to Advanced Messaging. Operators
billing relationship with their can also successfully build a MaaP
customers and billing is seen as a key ecosystem capitalising on assets
asset and differentiator for operator such as customer trust and
based MaaP. By enabling quick and privacy as well as their
easy payment mechanisms with larger customer base
low friction, operators can develop and existing SMS
an additional direct revenue source. A2P businesses.
With the emergence of new services,
indirect revenue models will need to
coexist with and supplement the direct ORDER A
FIND A TAXI
revenue models. Bilateral commercial
RESTAURANT
agreements will, therefore, need to PAY FOR IT
exist between platform or content
providers and operators as BOOK A TABLE
a precondition for access
BOOK A HOTEL
CHECK THE
WEATHER
gsma.com/network2020 Messaging as a Platform
#network2020 The Operator Opportunity28 29 Universal Profile for Advanced Messaging The GSMA’s Universal Profile for Advanced Messaging (UP) has united mobile operators (MNO), operating system providers and handset manufacturers behind a single global specification for IP-based carrier messaging. A single, open and common UP Messaging as a Platform (MaaP) simplifies and accelerates the adoption utilises the UP to enable a range of interoperable communications of services through the use of services allowing customers to benefit chatbots, plugins, AI and third-party from a richer and more consistent industrial applications providing messaging experience regardless of users with direct access to a range of what device or network they are on. brands and services from within the It also removes the need to download messaging app itself. MaaP will be a multiple messaging apps. As this is key component of the next Universal adopted around the world customers Profile release expected in Spring 2017 will benefit from upgraded voice and providing MNOs and partners with the SMS services and other enhanced ability to shape the future features such as instant messaging, of messaging. chat, photo sharing, live video, video calling and file sharing that work across any device and on any network. It is currently supported by 58 operators, OEMs and OS providers worldwide. gsma.com/network2020 Messaging as a Platform #network2020 The Operator Opportunity
30 31
The GSMA Support Making Messaging
The GSMA has a mission to help Advanced
Messaging progress as quickly as possible,
as a Platform a reality
rather than be restrained by a rigid and
time-consuming release schedule. Each release “Messaging as a Platform offers
will be backwards compatible, ensuring the
advanced messaging apps can interact with significant advantages to operators
earlier back-end and handset software. The and the wider ecosystem’.
Universal Profile is a key building block in
the construction of an Advanced Messaging
proposition that delivers reliability and reach
By establishing a clear ecosystem
without being rigid. strategy from the outset, MaaP can
be successful. However, this requires
By delivering economies of scale and a concerted and unified effort by
interoperability, the Universal Profile will ensure operators to move their messaging
mobile operators remain at the heart of the
communications experience. It is the next
solutions to the next level and MaaP
generation of messaging and it is the right time acts as the launch pad for chatbots
to do it. Over 500 networks, billions of users and Plugins but also looks ahead to
from the existing SMS community, Android and other core businesses. All ecosystem
other OS users to engage with. Everything is in stakeholders must also work as a
place.
collective and think creatively about
business models, charging and
interconnect principles to nurture the
MaaP opportunity and help it achieve
scale and long-term commercial
success. MaaP will be a key component
of the next release of the GSMA’s
Universal Profile expected in Spring
2017 and operators and partners have
the ability to be involved and shape
the bright future of MaaP.
To find out more about
Network 2020 please go to www.
gsma.com/network2020
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