Advanced SMS Will Garner More Subscribers, but MMS Will Generate More Revenue by 2008
Value-added services on mobile messaging networks will generate over $8.3 billion by 2008, according to a report released by Telecom Trends International (TTI). This revenue does not include the revenue generated from access and use of mobile messaging services.
The report, "Mobile Messaging: Which Technologies and Applications Will Succeed?" provides an exhaustive analysis of mobile applications that the value-added services will enable.
Despite the fact that by 2008, use of multimedia messaging services (MMS) will not be as widespread as that of advanced short message services (A-SMS), MMS will generate more revenue since operators will be able to charge a premium for MMS services, the report said.
Of the total messaging revenue in 2008, 59 percent will be generated by MMS services and the remaining 41 percent revenue will be attributable to basic SMS (B-SMS) and advanced SMS (A-SMS). At the same time, A-SMS technologies such as EMS and Smart Messaging will cannibalize basic SMS customer base.
Mobile messaging value-added services are being used to enable a wide range of applications, said Naqi A. Jaffery, President, Telecom Trends International. These applications include marketing and promotional campaigns; corporate and vertical market applications; surveys and voting; and transactions, entertainment and information services.
Messaging services provide a ubiquitous channel for B2B and B2C communication, the report pointed out. Due to its more enhanced capabilities, MMS will push messaging into more serious applications such as mobile transactions and mobile enterprise, it said.
Topics covered in the report include the following:
- Highlights of mobile messaging systems and technologies
- Billing and implementation issues
- Reliability and security issues
- Value chain and business models
- Value-added service providers (VASPs)
- Mobile messaging gateways for applications and cross-carrier mobile messaging
- Mobile value-added services and the messaging applications they enable
- Global forecasts of users of mobile value-added services broken down by regions.
- Global forecasts of mobile value-added services messages broken down by regions
- Global forecasts of revenues derived from mobile value-added services broken down by regions
