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SMS Revenues Decline For The First Time

A massive turning point in the history of mobile phones has be realised by research company Strategy Analytics, after they found that 2013 saw the first year-on-year revenue decrease for SMS and MMS services. The landscape of mobile phone usage has been changing for the past few years, with the emergence of services such as iMessage and WhatsApp, which are both alternatives to traditional text messaging and instead use the Internet to send and receive instant messages. However, the news of the decrease highlights just how important it is now for mobile phone networks to ensure their data packages are as competitive as possible in order to attract and meet the demands of the modern mobile user.

Deloitte have also been offering their take on the industry and have highlighted that although revenues from text messaging has fallen networks worldwide can still expect to make approximately £50 billion from the service in 2014. They’ve also suggested that networks can respond to the negative figures and instead “create an operator-owned OTT messaging service to rival the existing providers” – much like BlackBerry initially had a huge success with, with BBM.

Geographically the move away from text messaging has and will continue to be more prevalent in the Western world. Countries such as the USA and the UK will push through the average forecasted drop in text messaging of 20% by 2017 with figures expecting to reach nearly 40% instead. As these countries become more reliant on 4G phone services, which can also empower uses to use video calling as a viable out-and-about option, there’s little wonder why phone owners would revert back to a more expensive and slower service.

Article By Darren Kingman and Image Source