The State of Business SMS in the UK: What Ofcom's Data Tells Us

Industry Insights

The State of Business SMS in the UK: What Ofcom's Data Tells Us

By Brian McGeachie 15 Mar 2022 | 3 min read

Ofcom's annual Communications Market Report provides the most authoritative snapshot of how the UK communicates. And despite the rise of WhatsApp, iMessage, and social media messaging, the data consistently shows that business SMS is not just surviving — it's growing. Application-to-person (A2P) SMS volumes continue to rise year on year, driven by businesses using text messaging for notifications, marketing, authentication, and customer service.

The Numbers Behind UK Business SMS

According to Ofcom's data, the UK SMS market tells a story of two trends:

  • Person-to-person SMS is declining — consumers are shifting to WhatsApp, iMessage, and other OTT messaging apps for personal conversations
  • Business-to-consumer SMS is increasing — A2P messaging volumes have grown consistently as businesses adopt SMS for transactional and marketing communications

This split is crucial. While consumer texting habits have changed, the business case for SMS has never been stronger. When a business needs to guarantee a message is seen — a delivery notification, an appointment reminder, a security code — SMS remains the only channel with near-universal reach and 98% open rates.

Why Businesses Are Sending More SMS, Not Less

Several factors are driving the growth of business SMS in the UK:

  • Two-factor authentication: The explosion of online services requiring SMS verification codes has massively increased A2P volumes
  • E-commerce growth: Order confirmations, shipping updates, and delivery notifications are now expected by consumers
  • Healthcare digitisation: NHS trusts and private practices use SMS for appointment reminders, reducing missed appointments by up to 40%
  • Financial services: Banks and payment providers send transaction alerts, fraud warnings, and authentication codes via SMS
  • Marketing automation: SMS marketing campaigns deliver response rates 7x higher than email

The Regulatory Landscape

Ofcom has taken an increasingly active role in regulating SMS to combat fraud and protect consumers. Recent measures include:

  • Working with networks to block spoofed sender IDs
  • Requiring SMS aggregators to verify the identity of their business customers
  • Investigating and penalising artificially inflated traffic (AIT)

For legitimate businesses, this is positive. Tighter regulation means fewer scam messages reaching consumers, which maintains trust in SMS as a channel. Faretext supports these initiatives through our governance policies and strict customer verification processes.

What This Means for Your Business

If you're not using SMS as part of your customer communication strategy, you're missing the channel that your customers are most likely to engage with. The data is clear:

  • 98% open rate — your message gets seen
  • 90% read within 90 seconds — your message gets seen quickly
  • 45% average response rate — your message drives action

Whether you need transactional messaging through our SMS API, marketing campaigns through Oello, or appointment reminders for your practice — Faretext has the tools to get you started.

Frequently Asked Questions

Is SMS still relevant when everyone uses WhatsApp?

Yes. WhatsApp requires the recipient to have the app installed, an internet connection, and to have opted in to your business channel. SMS reaches every mobile phone on every network with no app, no data, and no smartphone required. For business-critical messages, SMS remains the most reliable channel.

How much does business SMS cost in the UK?

UK business SMS typically costs between 2-4p per message depending on volume. View our current pricing for exact rates and volume discounts.

Sources: Ofcom — Communications Market Report

BM

Brian McGeachie

Co-founder & Director

With over 20 years in telecoms across senior and director-level roles, 15 years in the SMS industry, and 30 years in design, Brian brings a rare blend of commercial strategy and creative thinking to business messaging. An advocate of emerging technologies, he believes in embracing innovation to keep businesses ahead.

Ready to get started?

Connect with Faretext today and receive 25 free SMS credits.

UK-based support. 01142 945 993. hello@faretext.co.uk

We value your privacy

We use cookies to enhance your browsing experience, analyse site traffic, and serve personalised content. You can choose which categories of cookies you allow below. cookies | privacy | terms | anti-spam