Recently, ZTE's Executive Director of 5G Messaging, Mr. Zhou Xiaojun provided some important insights on the topic.
What is 5G messaging?
5G Messaging is constructed based on the GSMA RCS UP standard. It enables multimedia and lightweight messages and achieves the interaction of industry messages by introducing the MaaP technology. 5G Messaging brings brand-new man-machine interaction modes. Users can enjoy one-stop service experience such as service search, discovery, interaction, and payment in the message window. 5G Messaging builds a new information service entrance.
What is the difference between 5G Messaging and OTT apps? And what new capabilities or features does 5G messaging offer versus current SMS or OTT apps?
Compared with OTT messages, 5G Messaging brings differentiated functions and advantages, and is a better channel for providing business messages.
Full coverage: Based on native terminals and mobile phone numbers, 5G Messaging requires no subscription, and the service reachability is 100%. For example, in the commercial promotion scenario, the service opening rate is 10 times higher than that of the OTT channel.
Efficiency: Messaging as a service. Notifications and services are completed on the same interface. A closed-loop service can be implemented in 3-5 steps. For example, in a life payment scenario, the business conversion rate is 95% higher than that of OTT channel.
Intelligence: AI-based intelligent chatbot service, such as customer service scenario, increases the response rate by 40% compared with OTT and WEB channels.
Security: Operators implements real-name verification to both UE and the enterprise terminal. The user account is encrypted and authenticated based on the 128-bit SIM card. Thus, it can be widely used in the financial service with the highest security requirement.
How is 5G Messaging different than what has historically been done on 4G LTE?
5G Messaging is the upgrade of traditional message services in the 3G/4G era. 5G Messaging is not only available in the 5G network. Constructed based on the GSMA UP2.4 standard, 5G Messaging is compatible with 3G/4G/WIFI network access. Ordinary terminals can be used as long as they support UP2.4 upgrade. For the terminals that do not support UP2.4, 5G Messaging can fallback to support MMS or SMS. Thus, it can cover all terminals and users.
How does the technology work across different providers and devices?
5G Messaging is based on the GSMA international standard, so it supports cross-vendor, cross-operation and cross-terminal interworking.
How will operators be able to monetize 5G Messaging? And who are the ideal users (specific consumers, businesses)?
5G messages bring operators more B2B business models. The revenue comes from channel revenue and the entrance revenue of the Internet mode.
First, 5G Messaging can upgrade the existing channels smoothly. Through the A2P messages with higher quality and higher quantity, it enlarges the channel scale to build a foundation for creating the entrance to the traffic and application distribution market.
Secondly, 5G Messaging enables the upgrade from the "pipe mode" to the "entrance ecology mode." By learning from the Internet business mode, 5G Messaging expand backward entrance revenues based on traffic and effect conversion, such as advertisements, search rankings, and certification.
In addition, 5G Messaging is based on operators' networks and use mobile phone numbers as accounts. Theoretically, 5G Messaging can cover all mobile subscribers. Based on the MaaP technology, 5G Messaging can serve thousands of industries. All services to reach users can be provided based on 5G Messaging. In the early stage, it is recommended that 5G Messaging be first used in the top industries that have a wide audience and great influence on government affairs, people's livelihood and finance. Through "one-click success and multi-point replication," a mature application ecosystem can be rapidly built.
For ZTE specifically, can you mention who you are currently working with on this, and what type of results they've been seeing?
As a pioneer in promoting the construction of the 5G Messaging ecosystem, ZTE is committed to providing operators with end-to-end solutions from platforms, terminals, applications to business information.
In terms of platforms, as the world's leading 5G Messaging platform provider, ZTE is the dominant player with the largest market share among the three major operators in China, and ZTE has helped Chinese operators build the world's largest 5G Messaging platform.
In terms of terminals, ZTE has released 10 5G Messaging terminals. From this year, full series of 5G mobile phones released by ZTE will support 5G Messaging.
In terms of vertical industry applications, ZTE has established the Openlab and collaborates with over 70 CSPs to incubate more than 150 5G Messaging chatbots, covering industries such as financial, government affairs, tourism, e-commerce, smart home and smart manufacturing.