In the ever-evolving landscape of communication technology, one might assume that traditional Short Message Service (SMS) would take a back seat to the flourishing realm of internet-based messaging platforms.
Yet, a recent report from the Nigerian Communications Commission (NCC) shows that telecommunications giants in the country, including MTN, GlobalCom, Airtel, 9Mobile, and Smile Communications, collectively reaped N53.6 billion in revenue from SMS during the year 2022.
The NCC’s latest annual report divulged that an astounding 14.08 billion text messages traversed these networks in the course of the year. At a fixed rate of N4.00 per message sent, this figure translates to a staggering N56.3 billion, highlighting the substantial revenue stream the operators continue to enjoy from providing the service.
The data also reveals a remarkable 48.8% surge in the number of text messages exchanged by subscribers in the span of just one year. This leap saw a shift from 9.46 billion SMS in 2021 to an impressive 14.08 billion in 2022.
Correspondingly, the volume of text messages received experienced an 11.06% boost to reach 11.8 billion, ultimately culminating in a combined tally of 25.9 billion SMS sent and received during the year.
In an era dominated by Over The Top (OTT) services such as WhatsApp and Facebook Messenger, traditional telecom operators have felt the pinch of dwindling revenue from calls and messages. Since its launch, WhatsApp has become a major competition for SMS, this is because of its ease and low or no fees.
However, as evident in the report, Nigerians persist in utilizing paid text messages despite the proliferation of free messaging alternatives like WhatsApp, Facebook Messenger, and Telegram. This interesting reveal raises intriguing questions about the enduring appeal of SMS, especially for formal or crucial communications where its reliability remains unmatched.
Industry analysts emphasize that while short message usage might have reduced due to the rise of OTTs, however, its importance cannot be entirely eclipsed by free messaging platforms. There remain instances where it is the preferred mode of communication, especially for formal matters, ensuring that the enduring charm of text messages perseveres.
The figure is a testament to the enduring relevance of SMS in a rapidly evolving communication landscape. While the rise of internet-based messaging platforms might have shifted the communication landscape, the traditional short message continues to carve out its niche, proving that even in the digital age, old-school text messages remain an essential tool for communication.
A closer look at the NCC’s data reveals intriguing insights into individual operators’ performance within this domain. MTN became the leader in SMS with 8.3 billion outbound and 8.7 billion inbound messages, contributing significantly to its N33.3 billion SMS revenue.
Following closely, Globacom secured the second spot with 3.6 billion SMS sent and 777.2 million received. This translated to a notable N14.5 billion in revenue. Meanwhile, Airtel, the third-largest operator by subscriber count, recorded 1.8 billion sent messages at N7.5 billion and 2 billion messages received.
9Mobile maintained its presence with 234.8 million sent SMS (N93.9 million) and 235 million received messages. Smile Communications, though with a more modest count, processed 173,607 sent messages (N694,428) and received 766,588 messages in the reviewed year.
Curiously, the operators also facilitated a total of 518.9 million international SMS in 2022, indicating the continued relevance of SMS on the global stage. This consisted of 59.5 million messages sent and a staggering 459.3 million received.
Read also: MTN, Airtel, Glo must now seek NCC approval before running ads
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