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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

Last week at The Fonecast: 28th November 2011

Mark Bridge writes:

The really big news last week wasn’t good: 17,000 jobs worldwide are being lost at Nokia Siemens Networks (which, incidentally, is a separate company from both Nokia and Siemens). That’s not far short of a quarter of the total workforce. The company is going to focus on mobile network infrastructure and services, with a particular emphasis on mobile broadband, and is likely to sell off other parts of the business.

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Shared data tariffs, bill shock, net neutrality and mobile traffic management

Mark Bridge writes:

Today’s mobile phone customers want more and more mobile data, which is stretching network capacity. In addition, many of those consumers would rather not be committed to a limit; they’d rather have a mobile internet tariff that is (or appears to be) unlimited. This puts even more pressure on mobile networks.

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Last week at The Fonecast: 21st November 2011

Mark Bridge writes:

Having read some of last week’s headlines, you might think the UK’s Communication Ombudsman has told mobile phone networks not to describe their data tariffs as ‘unlimited’ unless they really are. However, what’s actually happened is that one of the UK’s communication ombudsmen (ombudspeople?) has asked mobile operators to be clear about any limits, to stop unexpectedly high bills from building up and to tell customers before they exceed any limit. Better than nothing but hardly earth-shattering.

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Top 5 Productivity Apps for Business Owners

Ruben Corbo writes:

As a business owner, you know that being out of the office can cost you customers and productivity. However, in this digital age being out of the office doesn’t mean that you have to be away from your business. By downloading apps specifically for business, you can be productive from anywhere. Here are my top 5 apps for mobile business productivity.

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Enterprise user, you are the weakest link...

Mark Bridge writes:

Any security process is only as strong as the weakest link. That’s something of a truism. And for many organisations, the weak link is most likely to occur when information leaves the office. Which means it’s often caused by the user’s mobile phone or the user themselves.

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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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