Feeds

SMS: make hay while the sun shines

Killer app not so killer

  • alert
  • submit to reddit

Providing a secure and efficient Helpdesk

Mobile operators could be in for a shock - if the latest research from Forrester is correct. The firm predicts that European SMS (short message service) revenues will start to stagnate as early as 2004.

Having spoken to around 20 mobile operators in Europe, Forrester concludes that they need to tap this market to its full potential right now, before it stagnates and prices are driven down in 2004 and beyond.

Currently, it is estimated that mobile operators are gaining an average of 11 per cent of their revenues from SMS operations. This is off the back of more than 156 million text message per month - 89 per cent of which are perso-to-person SMS and 11 per cent of which are application to person messages, for weather and sport updates for instance.

This is set to change. By 2004 - Forrester believes - there will be a rise of more than 14 per cent in SMS activity, taking monthly totals to approx. 11.5 billion text messages per month. This will be the peak of activity. Beyond 2004 and up to 2007 volumes are expected to decrease, down to 11.1 billion, as new technologies such as MMS (multimedia messaging service) and Instant Messaging technologies start to take hold in the mobile space.

For the operators this is bad news. During the peak of SMS activity, which is predicted to generate as much as 19.6 billion Euros in 2003, operators will see SMS revenues contributing to as much as 47% of total messaging revenues. But after this, premium prices for text messaging services will fall. In 2007, Forrester predicts, SMS revenues will fallen to € 11.8bn.

Currently the average cost of a text message is running at 0.12 Euros. By 2007, this will crumble to a more modest 0.07 Euros, a drop of 41% from 2002.

© IT-Analysis.com. All rights reserved.

Choosing a cloud hosting partner with confidence

More from The Register

next story
Same old iPad? NO. The new 'soft SIMs' are BIG NEWS
AppleSIM 'ware to allow quick switch of carriers
Arab States make play for greater government control of the internet
Nerds told to get lost in last-minute power grab bid at UN meeting
Brits: Google, can you scrape 60k pages from web, pleeease
Hey, c'mon Choc Factory, it's our 'right to be forgotten'
Of COURSE Stephen Elop's to blame for Nokia woes, says author
'Google did have some unique propositions for Nokia'
FCC, Google cast eye over millimetre wireless
The smaller the wave, the bigger 5G's chances of success
It's even GRIMMER up North after MEGA SKY BROADBAND OUTAGE
By 'eck! Eccles cake production thrown into jeopardy
Mobile coverage on trains really is pants
You thought it was just *insert your provider here*, but now we have numbers
Don't mess with Texas ('cos it's getting Google Fiber and you're not)
A bit late, but company says 1Gbps Austin network almost ready to compete with AT&T
prev story

Whitepapers

Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Why cloud backup?
Combining the latest advancements in disk-based backup with secure, integrated, cloud technologies offer organizations fast and assured recovery of their critical enterprise data.
Win a year’s supply of chocolate
There is no techie angle to this competition so we're not going to pretend there is, but everyone loves chocolate so who cares.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Intelligent flash storage arrays
Tegile Intelligent Storage Arrays with IntelliFlash helps IT boost storage utilization and effciency while delivering unmatched storage savings and performance.