Indosat targets MSMEs with Google-powered RCS messaging

Indosat targets MSMEs with Google-powered RCS messaging

Indosat Ooredoo Hutchison said on Thursday it has partnered with Google to launch what it says is the first Rich Communication Services (RCS) business messaging service in Indonesia.

Indosat says RCS business messaging will expand its application-to-person (A2P) offerings beyond SMS by supporting features such business verification, suggested replies and actions, and rich card carousels.

The operator cites a 2021 report from conversational AI developer LivePerson, which claims that up to 88% of consumers globally search for products that can be accessed through messaging apps. The report also found that 77% of consumers are more likely to take the initiative to make transactions if they have access to information through messaging apps.

Meanwhile, Emergen Research released a report earlier this week saying that businesses are increasingly adopting RCS for its ability to engage customers effectively: “Research suggests that RCS messages are read 35 times more often than emails, and engagement with brands using RCS is 74% higher.”

Indosat president director and CEO Vikram Sinha said that RCS business messaging will provide a secure, convenient and engaging experience for businesses leveraging this new channel, particularly MSMEs.

"RCS business messaging, launched for the first time in Indonesia, will enable MSMEs to reach a wider audience and provide customers with a value-added experience,” he said.

Tan Bee Loon, head of business development for Communication Products (Asia) at Google, added that RCS business messaging would also help Indonesian MSMEs accelerate their digital transformation efforts.

A September report from Juniper Research forecasts active RCS users to reach 1.1 billion globally in 2024, from 930 million this year. Juniper also predicts new RCS traffic won’t cannibalize SMS traffic, and will generate over $15 billion in additional messaging revenue for operators between 2024 and 2028.

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