Google’s P2A Moves Risks the Ire of Operators

New Click-to-Chat Entry Points Across Ads and Search

To try to drive usage of RCS for Business, at MWC, Google announced that it would be actively pushing P2A activity. Google has added new entry points such as click-to-chat within ads, website widgets and ‘chat’ buttons within search results. Encouraging consumers to use RCS for Business might be seen as a win, but mobile operators are looking at it with some scepticism.

Operator Concerns Over Monetisation and Revenue Leakage

A major issue with the P2A push is that Google has said that it won’t charge for conversations initiated by a consumer from a click-to-chat ad or ‘chat’ button within a search result. This means that Google will be monetizing the RCS conversation as an ad but operators wouldn’t receive any money from the usage of RCS. Mobilesquared understands that while US operators are pushing back, most operators agreed to this arrangement when entering into their contracts with Google.

Google’s Growing Control of the RCS Ecosystem

This move comes at a time when operators are also uneasy about Google’s actions in other areas, such as pulling P2P RCS in around 50 markets and controlling the metadata surrounding RCS while leaving operators with responsibility for most of the regulatory burden, such as record keeping. Google has also refused to share its long-term strategy for RCS with operators. If it indeed has one, given that it is running a significant loss on the platform.

Investment vs Revenue Reality of RCS

Mobilesquared’s analysis shows that Google’s investment into the RCS ecosystem was around $1.75 billion by the end of 2025 and will reach $3.5 billion by the end of 2030. Meanwhile, in 2030, Google will earn $387 million from RCS. A substantial amount but barely making a dent in the losses Google has made on RCS.

So, into this landscape of one-way trust where operators must trust in Google’s good intentions with no insight into Google’s long-term strategy, Google are encouraging brands to use RCS but as a Google service rather than an operator service. Google already have an advertising relationship with brands, and they are able to use the new P2A entry points into a messaging relationship. Operators will have no oversight of how many messages are sent via these P2A entry points and will have to trust that Google’s billing reports are accurate.

The Risk of Becoming a “Dumb Pipe” in RCS for Business

Ultimately, encouraging the use of P2A RCS for Business is a good thing for the RCS for Business ecosystem, but Google’s P2A push puts it firmly in the centre of consumer-to-business interactions. Given the perennially mobile operator nightmare of becoming a dumb pipe, Google centring itself is sure to ruffle a few feathers.

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Blog Author: Charlotte@mobilesquared.co.uk