Skyward Research: SMS Industry Profitability Sources and Strategic Priorities Revealed

A survey conducted by Skyward of approximately 100 respondents, including representatives of leading SMS industry players such as Sinch, Twilio, Tata Communications, iBasis Messaging, and others, has identified operators' current revenue sources and strategic development priorities. The survey included providers from 30 countries across Europe, Asia, North America, and Latin America.

Current profitability analysis reveals that OTP traffic remains the industry's "gold mine." For 44% of operators, it generates key revenue streams driven by growing online services and widespread two-factor authentication adoption. Notably, this traffic type dominates among large and medium-sized operators capable of meeting increasing security standards and regulatory requirements. Most companies identified OTP as their primary revenue source regardless of their development strategy.

Marketing campaigns provide the main profit for 36% of surveyed operators, predominantly small and medium-sized companies. They successfully adapt to new communication formats using flexible CPaaS solutions. The high-risk segment, including gambling traffic, remains attractive to only 16% of respondents. This niche demonstrates the resilience of specialized small companies.

Strategic priorities in the SMS industry show business platform development as the primary growth direction, chosen by 40% of respondents. This trend reflects the transition from simple traffic aggregation to comprehensive CPaaS solutions across companies of all sizes. (Figure 1)

RCS Business Messaging attracts significant interest as a promising format with 23% support, though mass adoption remains limited. Providers view RCS as SMS evolution rather than replacement. Meanwhile, 20% of companies, mainly large operators, prioritize expanding MNO partnerships to ensure OTP traffic quality.

Key conclusion: the industry maintains reliance on classic SMS solutions while actively investing in platform business models (CPaaS) and new technologies (RCS). Companies combining stable OTP revenue with innovative approaches are forming the market's core.

A comprehensive analytical report with market trends and survey results will be published by Skyward in the coming months.