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Tuesday, November 06, 2007

SMS revenue slowdown: IM may step in.

An article from Computing reports on Ovum's prediction that SMS revenue growth will slow.

Ovum principal analyst John Delaney: "Even if SMS traffic keeps growing at current rates into the future, mobile operators cannot rely on revenues from SMS growing at the same pace". This is because the cost to consumers of sending messages is dropping. "So mobile operators need to plan an encore: a new type of communications service that can have the same kind of mass-market appeal as SMS, and that can inject new growth into mobile messaging revenues."

There are several contenders, one of which is instant messaging (IM).

Also reported at ITPro.