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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

This week at The Fonecast: 9th July 2011

Mark Bridge writes:

Roaming charges are back in the news this week. Not the latest round of price cuts (or, to be technically correct, lower price caps) but the European Commission's plans for the future. As well as continuing the downward pricing trend for a few more years, Neelie Kroes also wants wholesale interconnection at capped rates and the option of a separate 'roaming contract' when you travel abroad.

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The changing face of app stores

Mark Bridge writes:

When applications first hit the headlines, there were many stories about developers making small fortunes just from selling applications. Now there’s much more focus on promoting the app.

To understand what's changed - and to discover how developers get their apps noticed inside ever-expanding app stores - I spoke to Carsten Frien. He's CEO & co-founder of mobile advertising marketplace madvertise, a company that's based in Germany and has recently opened an office in the UK.

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Recycling mobile phones from Africa to Europe

Mark Bridge writes:

Recycling an unwanted mobile phone makes sense. It's good for the environment and it generates cash as well.

Newer phones recycled in Western Europe are likely to be reconditioned and resold locally, while older models may be reconditioned for use in developing countries. Damaged phones are either used for spares or are broken down for the metals and minerals in their components.

But what happens when people in those developing countries need to recycle their phones?

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The story behind the Pizza Express iPhone app

Mark Bridge writes:

Recently Pizza Express introduced a new iPhone application that lets customers book a restaurant table and pay their bill. The app was developed by 2ergo, a UK company based in Manchester.

Last week I spoke to Colin McCaffery, Product and Technology Director at 2ergo, to find out how difficult it was to get the app and the restaurant's own technology working together.

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RIM denies fire but admits to presence of smoke

Mark Bridge writes:

Anonymous opinions about technology are all over the web... and they're not always pleasant. PC versus Mac. Apple versus Android. WiMAX vs LTE. Even a relatively light-hearted rant can be misinterpreted. Still, if some unknown voice is trying to irritate you, you just ignore them - right?

Wrong. Not if you're Research In Motion.

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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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