WhatsApp Makes Service Messaging Free for Businesses, ‘WhatsApp problem’ For Airtel, Reliance Jio, Vodafone-Idea and Google’s To Grow Bigger

Highlights

• WhatsApp now offers free service messaging for businesses.
• Aims to boost AI chatbot interactions and challenges SMS’s 90% of market share.
• WhatsApp currently holds a 30% value share for service conversations.
• WhatsApp will also make utility messages free starting April 2025.

WhatsApp has introduced free customer service messaging for businesses making itself the cheapest way for businesses to send messages.

This move is expected to boost AI chatbot interactions and help WhatsApp grow its market share in India’s Rs 2,500 crore enterprise messaging market.

According to a recent ToI report, industry estimates reveal SMS still holds 90% of the market volume with 55-60 billion texts sent monthly.

On the other hand, WhatsApp commands a 30% value share.

WhatsApp clearly aims to disrupt this landscape by removing charges for service conversations.

WhatsApp’s Free Service Message For Businesses

“Effective November 1, 2024 — We are making service conversations free,” Meta announced on its website. Previously, service messages like order status updates or flight rescheduling were charged at Rs 0.25 per message in India.

SMS, by comparison, costs between Rs 0.12-0.15, and Google’s RCS is priced at Rs 0.20-0.25.

This is WhatsApp’s second price cut in six months following a 63% reduction in India earlier this year. The move was strategically aimed to counter competition from Google’s RCS and Apple’s upcoming entry into the enterprise messaging segment.

India’s Cellular Operators Association of India (COAI) representing major telecom companies like Airtel, Reliance Jio and Vodafone Idea, has raised concerns over WhatsApp’s growing presence.

In a letter to the telecom ministry, COAI accused global tech giants like Microsoft and Amazon of using WhatsApp for enterprise messages as an attempt to “presumably circumventing and bypassing the legal telecom route.”

According to COAI, this has caused a Rs 3,000-crore annual revenue loss to the government and telecom operators.

Meanwhile, recent reports suggest WhatsApp’s strategy doesn’t stop at service conversations.

Starting April 2025, utility messages like transaction alerts and account updates will also be made free.

These account for 80% of SMS traffic, potentially impacting SMS’s dominance even further

In a conversation with the Economic Times, a WhatsApp spokesperson revealed, “We occasionally make adjustments to our offerings to better reflect the ways in which the service is used and the types of information people are choosing to receive.”

India’s enterprise messaging market is valued at just under Rs 2,500 crore as of March 2023. While the market is poised for growth, businesses increasingly rely on digital payments.

FAQs

Q1. What new feature has WhatsApp introduced for businesses?

Answer. WhatsApp has introduced free customer service messaging for businesses making it the cheapest way for businesses to send messages.

Q2. How much did WhatsApp previously charge for service messages in India?

Answer. Previously, service messages like order status updates or flight rescheduling were charged at Rs 0.25 per message in India.

Q3. When will utility messages also be made free on WhatsApp?

Answer. WhatsApp will make utility messages like transaction alerts and account updates also free starting April 2025.

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