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Sunday, November 17, 2013

Annual global SMS revenue is expected to fall by £14 billion within five years

Figures from Informa Telecoms & Media show that global annual SMS revenue is expected to fall from $120 billion this year to $96.7 billion by 2018, which is a drop of $23 billion (£14 billion).

This predicted fall is being blamed on the adoption and use of over-the-top (OTT) messaging applications that aren’t controlled by mobile networks.

The Asia Pacific region, which currently generates the largest amount of revenue from SMS text messages, is expected to see the highest drop in annual SMS revenue over the forecast period. It’s notable that a number of OTT messaging apps have originated from countries in this region.

However, the report notes that mobile operators with a high proportion of post-paid (‘pay monthly’) customers can mitigate the impact of OTT messaging applications and slow the rate of decline by offering ‘unlimited’ SMS or large bundles with contracts. In addition, revenue from business use of SMS messaging is growing.

Gareth Sims, Head of Forecasting at Informa Telecoms & Media, said “Although we are forecasting a decline in SMS revenues, due largely to the well-documented competition from OTT players, the diverse messaging market provides so many complementary use cases that it would be naïve to think that SMS has no future role to play.”

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Opinion Articles

Roaming charge 'bill shock' isn't over yet

Mark Bridge writes:

In recent years we’ve seen many a newspaper headline about the high charges for mobile data when abroad. Horror stories that warned of bills exceeding £1000 per week.

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Orange T: what should the merged company do next?

James Rosewell writes:

The merger of T-Mobile and Orange on 1st April 2010 is one of the most significant events in the evolution of the UK mobile industry since the original creation of Orange and 1-2-1 in the 90s. From now on the UK will have 4 mobile networks, and one of those networks will have ~35% of the market. A 35% market share comes with a lot of potential. Not only can standards be influenced in a way previously unimaginable in the UK, but economies of scale can be translated into profits.

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Guy Kewney, 'the first computer journalist'

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One trade show too far!

Iain Graham writes:

This is a true story. It may not be a particularly relevant story - but it is a true story.

I think I have just realised that I have to be serious about my new career as a Grumpy Old Man (GOM) and come to terms with the fact that it is not new, just a natural progression from so many years as a Grumpy Young Man (GYM)!

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The mobile web and your personal information

James Rosewell writes:

The mobile techie community has known about mobile networks and indeed some handsets providing unique information about mobile devices and customers for a long time. Collin Mulliner, a graduate student at the Technische Universitat Berlin, has recently bought the issue to the attention of the public during a talk at the CanSecWest conference in Vancouver.

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Recent Podcasts

Reviewing our 2015 mobile industry predictions... and looking forward to 2016

Podcast - 15th January 2016

Iain Graham, James Rosewell and Mark Bridge return to review their mobile industry predictions from last year. Which mergers, partnerships and developments did they forecast correctly... and which didn’t work out as planned?

Later in the programme, the team anticipates some of the topics that will be hitting the headlines during 2016.

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Podcast from Mobile World Congress 2015

Podcast - 6th March 2015

Mark Bridge learns about the mobile technology trends at Mobile World Congress 2015 by chatting to James Rosewell of 51Degrees, Dr Kevin Curran from the IEEE and Chris Millington of Doro.

They talk about wearable devices, wireless charging, mobile operating systems and much more... including some of their favourite products from the exhibition.

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Looking back at February: from security scares to multiple MVNOs

Podcast - 27th February 2015

We're taking a look back at the biggest mobile industry news stories from February 2015, including allegations that the UK's security service tried to breach SIM card security by hacking into one of the world's biggest SIM producers.

We also talk about the planned BT and EE merger, the creation of two new UK virtual networks, some acquisitions in the mobile payment arena and a new Ubuntu smartphone.

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Interview with Chris Millington of Doro about mobile retailing, wearables and technology for older consumers

Podcast - 24th February 2015

In today's programme Mark Bridge talks to Chris Millington, who's Managing Director for Doro UK and Ireland.

They discuss the state of mobile retailing in the UK, the future of wearable devices and - as you might expect - smartphones for seniors.

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A month of mobile: O2 counts on 3, Microsoft counts to 10 and Apple counts its profits

Podcast - 30th January 2015

We're back with a month of mobile industry news, including takeover talks and takeover rumours. O2 and Three are said to be discussing a merger... but is there any truth in the suggestions that BlackBerry could be up for grabs?

We also discuss Apple's record-breaking quarterly figures, the highlights of CES and the launch of Microsoft Windows 10, as well as saying farewell to the current version of Google Glass.

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