SMS Continues To Lead Mobile Messaging Market

global

In-Stat The global messaging market continues to be important to mobile carriers, with the bulk of the revenues continuing to come from Short Message Service (SMS) text messaging. The greatest growth in mobile messaging, however, will come from wireless instant messaging, which, driven by corporate users, is expected to increase revenues six-fold between 2007 and 2009, the high tech market research firm says.Revenue from SMS is leveling off and will decline in the future due to less price elasticity resulting from mature competition in developed regions. Margins, however, remain good for most carriers due to the inherent profitability of SMS.

• Multimedia Message Service (MMS), which delivers pictures, sound clips and video, is expected to show nearly 50% compound annual growth rate through 2009.

• The major barrier to widespread consumer adoption of wireless instant messaging will be development of industry standards.

• Enhanced Message Service (EMS) has virtually disappeared as a viable technology.

Mobile Messaging: More Products, More Growth Publ Publ 20050531 SMS?