The top four US operators tapped Synchronoss Technologies to provide a messaging platform for a joint rollout of rich communication services (RCS) in 2020, handing the company a key win in the segment.
On a call with investors, CEO Glenn Lurie hailed the five-year deal as a game changer for Synchronoss, noting the contract is expected to exceed the total value of its existing advanced messaging business in terms of overall value and annual revenue contribution.
For reference, he said the segment generated annual revenue of between $20 million and $25 million in 2018.
The announcement comes after the launch of the Cross Carrier Messaging Initiative (CCMI) joint venture by Verizon, AT&T, T-Mobile US and Sprint in October, which aims to deliver an interoperable RCS app to Android devices in 2020.
Synchronoss will enable the solution in collaboration with WIT Software.
Patrick Doran, Synchronoss CTO, said all common Android devices sold by the operators will be covered.
Lurie explained RCS will open a new channel for brands and consumers to connect, and offers operators an opportunity to reclaim incremental revenue opportunity lost to OTT competitors.
He added bidding on the CCMI contract was “extremely competitive,” but noted the company’s experience deploying a similar platform for leading Japanese operators in 2018 was advantageous.
The US contract further bolsters Synchronoss’ competitive position as other operators around the world explore RCS-based opportunities, Lurie said.