Mobile Operators Losing Billions to Social Messaging Apps

The likes of Apple’s iMessage and other free social messaging apps and services now available across myriad platforms are costing mobile operators dearly. On Wednesday, Ovum published a new report that lends some data to the suspicion that 2011 was not a banner year for mobile operators in terms of text/SMS revenue. Ovum’s research shows …   Read More

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The likes of Apple’s iMessage and other free social messaging apps and services now available across myriad platforms are costing mobile operators dearly.

On Wednesday, Ovum published a new report that lends some data to the suspicion that 2011 was not a banner year for mobile operators in terms of text/SMS revenue.

Ovum’s research shows that consumers’ increasing use of IP-based social messaging services on their smartphones cost telecom operators $8.7 billion in lost SMS revenues in 2010, and $13.9 billion in 2011.

And it looks like the lost revenue is poised to balloon even further in 2012.

The independent technology analyst reveals that it expects the decline, representing nearly 6% of total messaging revenue in 2010 and 9% in 2011, to continue as the popularity of messaging apps continues to grow.

“Ovum warns operators to rework their legacy services if they want to secure their future position in the messaging market,” the company says.

“Social messaging has disrupted traditional services, and operators’ revenues in this area will come under increasing pressure,” says Neha Dharia, consumer analyst at Ovum and author of the report. “Tapping into the creativity of app developers, forming industry-wide collaborations, and leveraging their usage data and strong relationships with subscribers are the key ways for operators to ensure that they hold their ground in the messaging market.”

Have you changed your texting plan or saved money as a result of new social messaging apps and services?

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3 comments

  1. IndiaMobile User

    What about the increased Data revenues to carriers ? Can't Use Social Messaging without a data plan….

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