In just two days after announcing USD 8.0 billion acquisition of HARMAN, Samsung Electronics announced another acquisition -  NewNet Communication Technologies (Canada), Inc. (“NewNet Canada”), a company operating Rich Communications Services (RCS) business within NewNet Communication Technologies. The transaction can translates to the company’s strong intent to expand its share and influence in the global platform market, to make itself well poised to compete with Google, and to create synergy effects in new business like connected car, one of its key flag businesses.

NewNet Canada (Halifax, Nova Scotia based) was originally founded as “NewPace” in 2009, but acquired by a USA-based company, NewNet Communication Technologies, in 2014. 

RCS is an integrated messenger standard by the GSMA.

The Samsung's acquisition can be interpreted as the company's clear acknowledgement of the great potential of RCS-based global platforms. One of the biggest benefits that RCS has is that it is an open and globally interoperable standard that any network operators can use, with any types of devices and OSs - Android, iOS, smartphones or automobiles. 

Anyone who wants to take the lead in the RCS platform market must be able to have more operators and devices available in the RCS ecosystem. In such regard, Samsung will obviously make quick moves to secure its RCS ecosystem.

Experts in the market predict that Samsung will team up with global and local network operators for RCS business, saying it has actually been developing RCS-related technologies for months.

All this to compete with Google, which has already hooked up with 18 global network operators to build RCS partnership.

In the beginning of the month, Google and Sprint jointly launched RCS service through collaboration in which Sprint agreed to add a built-in RCS by Google to smartphones it sells - some LG models and Google Nexus first and then all Android smartphones starting next year.  

Late September last year, Google acquired 'Jibe Mobile', one of the two prominent RCS providers with NewNet Canada. After a series of messenger services like Hangout, Google Chat, Google Talk failed to bring satisfying outcomes, Google is returning with RCS. Apple also is gradually expanding its service ranges with its own RCS technology.         

It is the industry's analysis that Samsung Electronics is now fully fledged for RCS business with its world best RCS device technologies it has developed for long and RCS cloud technologies it has recently acquired through the acquisition of NewNet Canada. This is why the company could be so confident when it declared it would offer server solutions for network operators who have no RCS infrastructure.  

An unnamed official from a network operator in Korea noted "Even when global network operators like Sprint requires installation of Google's RCS, Samsung has its own technology that can be used as a bargaining chip."  

Unlike IoT sensors so far that process simple control and management, RCS actually monitors to make sure signals are received by devices. So, significant synergy effects are to be created through cooperation with Harman, a USA auto parts supplier recently acquired by Samsung Electronics, for example, by adopting RCS in remote automobile diagnosis. RCS can also be applied to Location Based Services (LBS) such as delivering location information of users while they are on the phone.

RCS architecture for enhanced messaging (TTA)

<Key RCS features>

• Chatting and group call

• Delivering files

• Sharing images and videos

• IP-based voice and video transmission

• Device setup

• Offering communication status data