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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

Information that's free on the web?  There's an app for that!

Mark Bridge writes:

A few months ago I was at the launch of DataWind’s UbiSurfer netbook, a device that includes 12 months of internet access with the surprisingly low purchase price. A light-hearted presentation compared the UbiSurfer's web access with the Apple iPhone’s “there’s an app for that” TV campaign – and reminded us that many popular web-based iPhone apps cost money whilst web pages were free to access. Pay for a currency converter – or access one online for nothing. Pay for a train timetable application – or go to the mobile web for free.

Commonsense may send consumers straight to the web… but convenience and marketing has still sent plenty to the Apple App Store, which celebrated two billion downloads recently. I didn’t think much more about this until I saw a report in Newsweek earlier this month.

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Will the Microsoft geeks use it?

James Rosewell writes:

Whilst the mainstream press were busy covering the marketing launch of Windows Mobile 6.5 or 'Windows Phone' as it’ll now be known, I spent some time with the geeks looking under the hood at Microsoft’s new desktop (Windows 7) and server (Server 2008 R2) operating systems. The event was packed full of IT professionals whose jobs and careers are heavily involved with Microsoft. They were there to learn about the latest products ready for deploying them within their organisations. These are the people that keep e-mail systems working, decide what applications you’ll be using at work, choose the technology that companies use on the web and increasingly steer corporate mobile strategy.

So what mobile phones were these people using?

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Dubious surveys don't help anyone

Mark Bridge writes:

Last week in one of my opinion pieces I had a bit of a go at a mobile phone price comparison website. I'd only just forgiven them when I saw another survey from another mobile phone price comparison website. This one said shopping for a mobile phone at a price comparison website could be up to 40% cheaper than visiting the high street. And then I took a closer look...

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Termination rates are already falling - so why all the fuss?

Mark Bridge writes:

With over 100,000 people having signed its petition in four months, there’s no denying that the Terminate The Rate campaign is attracting supporters. And with promises including “BT and 3 are working together on a petition that will lower your phone bill by reducing the level of Mobile Termination Rates”, it’s easy to see why.

But what’s the point of all the campaigning - and has it really achieved anything?  Terminate The Rate says mobile networks charge a Mobile Termination Rate of around 4.7p per minute for connecting a call to another network. That’s a lot of money over the course of a year. But those networks also pay that 4.7p when calls are connected to them, which cancels out a fair bit of it.

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From Vizzavi to Vodafone 360

Mark Bridge writes:

Earlier this week Vodafone announced Vodafone 360 under the headline “Bringing your world together”. It all sounds very promising – and it reminded me of another Vodafone launch nine years before. It was September 2000 when Vizzavi appeared in the UK...

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Podcast from Mobile World Congress 2015

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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.

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

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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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