Opinion Articles

Friday, May 11, 2012

Is Facebook killing SMS?

Mark Bridge writes:

Facebook is killing off SMS traffic and SMS revenue for mobile networks, according to a new research note from Strand Consult. It says the ‘golden days’ of messaging growth are over as consumers increasingly use Facebook to keep in touch.

With over 800 million people around the world using Facebook - and more than half of this number accessing Facebook on their mobile phones - it’s thought that Facebook already sees more minutes of mobile traffic than the biggest mobile operators. Strand Consult says it’s Facebook, not ‘market players’ like Google, Skype, Twitter and MSN, that is really important to the mobile industry.

So what’s going to replace SMS revenue for network operators?

The answer, according to Strand Consult, is... SMS. It suggests that offering a flat-rate SMS bundle for a fixed fee results in consumers continuing to send text messages without worrying about the cost. The messages still get paid for, yet the customer doesn’t worry about the price of each message.

Will we see the end of individually-priced text messages across all tariffs - or will network operators look to SMS alternatives, such as Telefonica’s TU Me and the GSMA’s joyn?

Is the SMS cash cow really going to be killed by Facebook?

In this week’s special podcast feature we’re talking to Geoff Love of Esendex about the business use of SMS messaging. You can listen to the interview via the built-in audio player on our website, on iTunes or by downloading the MP3 file.
Author: The Fonecast
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