Messaging Continues to Be Cash Cow for Mobile Operators
[ Mon, 2nd Feb 2009 ]
As mobile operators have seen the average revenue per user (ARPU) decrease, they have sought to boost revenue via new value-added services; however, the most profitable data service is still text messaging, reports In-Stat. Inexpensive, ubiquitous, reliable, and simple for the mobile customer to operate, Short Message Service (SMS) and Multimedia Message Service (MMS) technologies provide potentially endless revenue streams for forward thinking Mobile Network Operators (MNOs), the high-tech market research firm says.
"SMS may be a basic, cheap technology, but it still has much life as a MNO cash cow," says Frank Dickson, In-Stat analyst. "The keys to SMS profitability are its ease-of-use, inexpensive price tag, global reach, and increased reliability as infrastructure development increases in more rural global regions. In developed areas, however, it has become increasingly important for mobile operators to find ways to enhance and personalize the SMS service offering."
Recent research by In-Stat found the following:
* Users are sending more than two trillion mobile messages per day globally as of the end of 2008.
* In-Stat consumer survey showed that consumers that use mobile messaging also use significantly more voice minutes than overall survey respondents.
* In addition to paying more for value-added services, US mobile messengers are also more likely to pay up to 25% more for their handsets than all survey respondents.
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