Really? Doesn’t iMessage fall back to sms if the receiver doesn’t ack? At least that’s what the UX feels like.
1. The sender cannot connect to the imessage server 2. The receiver does not connect to the imessage server, on any of the devices registered to receive at that particular address.
I know both methods happen since I didn't used to have data and I would receive SMSs when someone sent me an imessage and I was out and about.
See https://discussions.apple.com/thread/8063349?sortBy=best