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Global Rich Communication Services (RCS) Market Analysis and Forecast (2013 – 2018)

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Global Rich Communication Services (RCS) Market Analysis and Forecast (2013 – 2018) IndustryARC Global Rich Communication Services (RCS) Market Analysis and Forecast (2013 – 2018) VAS and VoLTE Main Features of Growing MNO Deployability Strategies IndustryARC | 1 TABLE OF CONTENTS 1. Global Rich Communication Services – Market Overview 2. Executive Summary 3. Global Rich Communication Services – Market Landscape 3.1. Market Share Analysis 3.2. Comparative Analysis 3.2.1. Product Benchmarking 3.2.2. End user profiling 3.2.3. Patent Analysis 3.2.4. Top 5 Financials Analysis 4. Global Rich Communication Services – Market Forces 4.1. Market Drivers 4.2. Market Constraints 4.3. Market Challenges 4.4. Attractiveness of the Rich Communication Services Industry 4.4.1. Power of Suppliers 4.4.2. Power of Customers 4.4.3. Threat of New entrants 4.4.4. Threat of Substitution 4.4.5. Degree of Competition 5. Global Rich Communication Services Market – Strategic Analysis 5.1. Value Chain Analysis 5.2. Pricing Analysis 5.3. Opportunities Analysis IndustryARC | 2 5.4. Product/Market Life Cycle Analysis 5.5. Suppliers and Distributors 5.6. Business Model 5.6.1. B2C 5.6.2. B2B 5.6.3. B2B2x 6. Rich Communication Services Market by Applications 6.1. Mobile Commerce 6.2. Cloud Storage/Access 6.3. LTE Direct 6.4. Rich Calls and Messaging 6.5. Video 6.6. Enterprise 6.7. Others 6.7.1. Social 6.7.2. VAS 7. Rich Communication Services Market by Solution Types 7.1. Unified Messaging 7.2. Web Conferencing 7.3. VoIP 7.4. Online Storage 7.5. File Transfer/Content Sharing 7.6. Multimedia 7.7. IM and Presence Service 7.8. Geo-location Exchange IndustryARC | 3 7.9. Network Backed Blacklist 7.10. Social Presence Information 7.11. SIP options/Presence based Capability Exchange 7.12. Others 8. Rich Communication Services Market by Partners 8.1. Independent Software Vendors (ISVs) 8.2. API Providers 8.3. OTT Service Providers 8.4. Mobile Network Operators (MNOs) 8.5. Original Equipment Manufacturer (OEM) 8.6. Infrastructure Provider 9. Rich Communication Services Market - Geographic Analysis 9.1. Introduction 9.2. Americas 9.2.1. North America 9.2.2. Brazil 9.2.3. Argentina 9.2.4. Mexico 9.3. Europe 9.3.1. UK 9.3.2. France 9.3.3. Germany 9.4. APAC 9.4.1. China 9.4.2. South Korea IndustryARC | 4 9.4.3. Japan 9.4.4. Australia 9.5. ROW 10. Market Entropy 10.1. New Product Launches 10.2. M&As, Collaborations, JVs and Partnerships 11. Investment Opportunities – Analysis by Target companies/customers, Capital Investments, ROI, Payback Period and Source of Funds. 12. Company Profiles (Overview, Financials, SWOT Analysis, Developments, Product Portfolio) 12.1. Acision 12.2. Acme Packet 12.3. Alcatel-Lucent 12.4. Genband 12.5. Huawei 12.6. Deutsche Telekom 12.7. D2 Technologies 12.8. Interop Technologies 12.9. Infinite Convergence 12.10. LG U+ 12.11. Nable Communications 12.12. Neusoft 12.13. Solaiemes 12.14. Summit Tech 12.15. Movistar IndustryARC | 5 12.16. Mavenir Systems 12.17. Wit Software 12.18. Vodafone 12.19. Metaswitch Networks 12.20. Nokia Siemens Networks 13. Appendix 13.1. Abbreviations 13.2. Sources 13.3. Research Methodology 13.4. Bibliography 13.5. Compilation of Expert Insights 14. Disclaimer IndustryARC | 6 REPORT SCOPE & STAKEHOLDERS SCOPE The report describes the Rich Communication Services Market by partners, geography and applications. High level analysis about the Rich Communication Services costs, strategies, future opportunities along with the business landscape analysis of key market players are focused in the report. Competitive landscape for each of the product types is highlighted and market players are profiled with attributes of company overview, financial overview, business strategies, product portfolio and recent developments. Market shares of the key players for 2012 are provided. The prominent players profiled in this report are Mavenir, Acme Packet, Alcatel Lucent, Huawei, NSN and others. The report contains the most detailed and in-depth segmentation of the rich communication services market. STAKEHOLDERS Mobile Network Operators, Value added service providers, wireless device OEMs, content providers, ICT infrastructure companies, API providers, API management companies, LTE and IMS integrators, contract manufacturers, service providers, component suppliers, system integrators, maintenance companies, IT Providers are the key stakeholders in this market. IndustryARC | 7 REPORT DESCRIPTION Rich Communication Services (RCS) is a global initiative created by GSMA, offering subscribers an advanced set of features like SMS and MMS, VoIP, video chats, online file sharing and storage etc. Also marketed under the brand name of joyn, it is an inter-operator service in the telecommunication industry. RCS is primarily an upgrade from the traditional Circuit Switched technology to an all-IP communication interface marking the next generation of messaging and voice capabilities. RCS and Voice over Long Term Evolution (VoLTE) share the same IP Multimedia Subsystem (IMS) investment and leverage the same IMS capabilities. Globally, RCS is currently live in the USA, Brazil, Argentina, South Africa, Germany, France, Turkey, South Korea, Spain and UK etc. Russia, Canada, Indonesia are some of the other countries which are expected launch RCS in 2014 soon. The global RCS market revenues are expected to increase from around $3.1bn in 2013 to reach around $10.5bn by 2018, growing at more than 25% CAGR during the forecast period. SAMPLE TABLE 1: GLOBAL RCS MARKET REVENUE, BY SERVICE TYPE ($MILLION), 2012 – 2018 Service 2012 2013 2014 2015 2016 2017 2018 CAGR (%) Unified Messaging XX XX XX XX XX XX XX xx% Web Conferencing XX XX XX XX XX XX XX xx% VoIP XX XX XX XX XX XX XX xx% Online Storage XX XX XX XX XX XX XX xx% File Transfer/Content XX XX XX XX XX XX XX xx% Sharing Multimedia XX XX XX XX XX XX XX xx% IM and Presence XX XX XX XX XX XX XX xx% Service Total XX 3,142 XX XX XX XX 1,053 25% Source: IndustryARC Analysis Rich Communication services in its different variants like RCS, RCS-e and RCS-like services offer instant messages, file sharing, share pictures and video while speaking and it works on any device or network. Other value added services like mobile health, mobile education, mobile marketing, gaming etc. are key offerings which make RCS relevant over internet companies and OTT service providers. RCS also works seamlessly from the network provider to the mobile subscriber as there no downloads, installation and maintenance steps. The demand for richer communication services from subscribers followed by the need for MNOs to stay relevant in the onslaught of OTT service providers are the primary market drivers for this industry segment. IndustryARC | 8 SAMPLE GRAPH 1: GLOBAL RCS MARKET REVENUE, BY GEOGRAPHIC REGION (%), 2013 APAC North America Europe RoW Source: IndustryARC Analysis Messaging provides significant revenues apart from other VAS services offered by MNOs. However recent increase in the usage of over the top (OTT) services from third parties by-pass these MNO offerings and hence provide minimal to zero revenues to them. IndustryARC expects that on an average more than $25bn has been lost in revenues in 2013 in only SMS revenues by mobile operators. RCS is a much needed service that has hence risen from a niche product to a mandatory service to be offered across global mobile networks. Hosted IMS solutions also are helping the market to increase at a rapid pace as this gives operators significantly lesser time to market and spending. Monetization of RCS is still a major challenge that needs to be addressed soon. RCS NETWORK APIS & WEBRTC Reportedly, monetization is a key hurdle that needs to be overcome for MNOs to generate ROIs on their investments and also compete with OTT offerings on equal footing. The major obstacle has been the closed nature of the legacy networks which was the main reason that gave rise to OTT in the first place. Telecoms need to open up their networks to third party developers and services companies to increase revenues and to develop APIs on a wide range of areas like: Network Address Book, Presence, Messaging (SMS/MMS), Chat, File Transfer, Call, Video/Image Share, OAuth Framework, Capability Discovery In this initiative, telecom operators need to embrace webRTC and the concept of APIs to gain revenues and market share. webRTC is an API standard drafted by W3C enabling voice, video and file sharing capabilities without downloading or installing plugins between different IndustryARC | 9 browsers. Browsers like Chrome, Mozilla and Opera already support the standard. Exposing of network APIs by telecom providers to third parties to build applications for customer care, chats, messaging, gaming etc will improve the quality, variety and money making opportunities also to telecommunication companies. It can be compared to the Google Android system where APIs are used to produce applications that are free and priced, creating a vibrant community of developers and subscribers, ultimately improving the bottom-line of Google, mobile phone OEMs and developers. Huawei for example launched in April, 2012 the first webRTC based rich communications capability exposure gateway. Solaiemes also provides RCS API gateway but is based on the first RCS OMA standard. IndustryARC | 10 MARKET - TRENDS RCS or Joyn services as marketed by GSMA helps users to share instant messages, share photos and videos while speaking and it works on any device or network. RCS however has split into 3 different segments based on the operator plans like formal RCS service providers (North America), RCS-e (mainly in Europe) and service providers supporting RCS-like services (Europe and APAC). Movistar, Orange, Vodafone, China Mobile, SK Telecom are the top MNOs providing RCS to their customers. Around 9.6 trillion messages were sent in 2012 and this is expected to increase to 28.2 trillion by 2017.
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