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Telecoms Are Losing Revenue from Text Messaging

Posted by | Posted in News | Posted on 23-02-2012 | comments: 0

Contact with Sandrah Peterson: +Sandrah Peterson

cheapest callsThe end result of a report made by the research firm Ovum shows that telecom companies are losing big revenues from their text messaging systems because of the popularity of messaging apps among their clients. These days people are more likely to send a text message using a text messaging app or service like Whatsapp or Facebook Mobile Messanger, and even Twitter, than to send a conventional SMS over the network of the mobile operator.

The estimates in the report published by Ovum showed that telecom companies lost another $5 billion of their revenues from SMS services this year compared to the 2010. This bring the combine lost of revenue for 2011 to nearly $14 billion, while in 2010 that number was $8.7 billion.

Still, the big companies shouldn’t feel threaten too much by the free text messaging apps and services because as the report shows nearly 75% of all text messages sent with cell phones are sent through the mobile networks of the operators. And also half of the people sending photos or videos using their cell phones would rather use mobile messaging than apps providing the same service for free.

And while the report by Ovum shows that companies are losing revenues from their SMS services, the report doesn’t show how much profit the telecom companies are probably making by the excessive use of data by their clients when using such free text messaging apps and services.

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