The mobile carriers and text messaging industry, which had only begun to climb, caught up with `survival`. The `corporate messaging` market, which was a profitable source for related industries, is gradually narrowing due to the spread of free platforms such as cacao alerts.

According to the industry on September 26, three telecommunication companies including SK Telecom, KT and LG U Plus have formed `Enterprise Messaging Win-Win Partnership` in cooperation with the Enterprise Messaging Association. The Enterprise Messaging Consortium is comprised of companies that provide B2B services such as bulk messaging services such as Daou Technology, Info Bank, and Standard Networks, and corporate messaging.

So far, three mobile carriers and messaging companies competed for the enterprise text messaging business. With three unified communications providers providing virtually unlimited text messaging via data-centric messaging, messaging companies are struggling to keep their corporate customers away from providing illegal incentives to their customers. The three mobile carriers, which could not expect to receive text message revenue from general consumers, also saw the corporate market as a `new market`, mobilized funds, and lowered text service rates, leading to competition in the industry.

An industry expert said, "Most messaging companies are small and medium-sized businesses, but there is no reason for them to hit corporate customers at a lower rate than the cost of large companies such as telecom companies. The size of enterprise messaging market is expected to grow to about KRW 700 billion this year, but the revenue per company is getting smaller and the management is seriously difficult." In response, messaging companies filed complaints with government authorities and criticized the three telecom operators for their actions. The three sides of the conversation also grew increasingly confrontational, with messaging companies offering excessive incentives to corporate customers and confounding the market.

However, with the rapid spread of free messaging platforms such as Kakao Alert Talk, both sides have shifted toward coexistence rather than confrontation. A mobile carrier’s representative said, "The win-win consortium looks for ways to support intermediary operators, debate over unfair practices such as prohibiting excessive rebates, and expanding the corporate messaging market." First, it offers discounts and promotions for small- "We are discussing ways to mitigate the burden of small and medium-sized businesses."

Besides, unfair practices such as offering a variety of rebates or selling below the cost through rate adjustment have also added to midnight efforts to prevent market turmoil. Another mobile carrier expert said, "In the case of small and medium-sized companies, it is true that there is not much capacity to develop new platforms to cope with the change." Large companies such as telecom companies will increase their R & D investments, Win-win effect in a way that seeks to find a way to win. "

Meanwhile, it will strengthen midnight efforts on illegal activities such as illegal spam sent mainly through messaging companies.

By Kang Eun Seong esther@


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