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SMS to be $67bn Industry by 2012 …..

A report from Portio Research has forecasted SMS revenues to reach $67 billion. The increase is mostly attributed to an expected increase in mobile subscriber base from 2.61 to 4.81 billion, sending 3.7 trillion messages. The Asian markets are expected to grow the fastest, comprising 50% of the subscriber base by 2008.SMS accounts for approximately 75-80% of carrier’s non-voice plan revenue, with voice plans comprising 80% of worldwide mobile revenue. Competition amongst carriers has been eroding voice margins and mobile content providers for ring tones and wallpapers are on their last legs, with users more easily accessing content over the internet. Consequently, carriers should be turning their attention to data services.

SMS has been the fastest growing messaging service, but the pricer MMS, e-mail, and mobile IM are expected to grow healthily as well. The report suggests operators must carefully manage rates for these alternatives in order to avoid cannibalizing the SMS market.

After a slow start, MMS has also started experiencing significant growth in several regions, especially in North America. Since interoperability agreements were finally put into place in 2005, the North American market has enjoyed rapid growth in MMS traffic. While North America and Europe now enjoy growing MMS traffic and revenues, MMS is still quite weak in much of Asia and other regions, namely Latin America and most of Africa and the Middle East.

Apart from SMS and MMS, mobile e-mail, mobile IM, the trend of popular mobile applications and games is also showing strong future growth prospects in some geographic regions. Apart from North America and Europe, mobile e-mail is expected to grow significantly in the mobile markets of the Asia Pacific region. The success of mobile e-mail is largely driven by the growth of more advanced handheld devices, such as PDAs and smartphones, so obviously growth of these services will be broadly restricted to the wealthier, more advanced markets for the immediate future.

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February 21, 2007 - Posted by | mobile applications, Mobile news

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