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Apr. 9 (NBD) -- SMS (Short Messaging Service), which seems to have been reduced to merely a receiver of verification codes in its war with WeChat and various Apps, sees its chance to fight the odds and regain the lost ground with the development of 5G.

On Wednesday, the top three Chinese carriers China Mobile, China Unicom and China Telecom jointly released a white paper on 5G messaging services, vowing to improve their text messaging system to give users access to enhanced features.

Based on GSMA's RCS (Rich Communication Services) Up structure, 5G messaging services allow users to share texts, HD pictures, videos, locations, book tickets and even check logistics status, freeing users from installing a pile of Apps.

During the release, smartphone makers such as Huawei, ZTE, Xiaomi, Samsung and Oppo also give credit to the function and many of them are deploying the service.

National Business Daily noticed that encouraged by the news, RCS concept stocks rallied on the day with quite a few, such as Beijing Ultrapower Software (300002.SZ) and Wutong Holding Group (300292.SZ), surged to the daily limit of 10 percent and extended their gains on Thursday.

5G messaging services could reshape the landscape of RCS, noted Huaxi Securities in a research report. It's noticed that there are 76 RCS providers worldwide with daily active users of 250 million. The market size of RCS-based texting service is expected to hit 74 billion U.S. dollars in 2021.

However, it remains to be observed whether 5G messaging can stand out from competition as it overlaps WeChat Mini Program in many ways.

Email: gaohan@nbd.com.cn