Fri Oct 28, 2005 2:51 pm
Mobile messaging revenue in the USA increased by 106% in 2004 and is expected to continue to grow strongly over the next five years from its current low base, according to a new report published by Analysys, a global adviser on telecoms.
In 2004, mobile data accounted for just 4.8% of operators' total mobile services revenue in the USA, compared to 15.9% in Western Europe and 22.0% in Japan. A key reason for this was the relatively low usage by US subscribers of SMS and other messaging services.
However, this is beginning to change, according to Analysys, as US operators are now addressing the factors that have stifled usage of messaging services. By 2008, mobile messaging alone will account for 10% ($16.4 billion) of operators' total mobile services revenue.
"As well as implementing messaging interoperability, US operators have introduced large bundles of various types of messaging services, which can be very attractive to customers," says Alex Zadvorny, author of the report. In 2004, according to Analysys estimates, the average US subscriber increased usage of SMS by 50%.
"For a flat monthly fee, a subscriber can now sign up for a messaging bundle and send any combination of text, instant, picture and video messages. T-Mobile USA, for example, is currently offering 'messaging value bundles', which allow customers to send and receive 400, 1000 or unlimited messages per month for $4.99, $9.99 and $14.99, respectively," says Zadvorny. "Such bundles have the potential to significantly increase usage and revenue from messaging, and could be implemented by operators in other markets."
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