SMS! Still the killer application

Portio Research’s new report ‘Mobile Messaging Futures 2007 – 2012’ on SMS says that while SMS revenue growth won’t match the growth of SMS volumes as a result of declining prices, by 2012 global SMS revenues will reach US$67 billion driven by 3.7 trillion messages.

What’s contributing to the success of SMS services, says Portio, is that it’s a very fast means of peer-to-peer mobile communication and an ever- growing base of new subscribers.

Case in point is Asia Pacific.

Portio estimates that every five minutes now and over the next six years 2,267 people will purchase their first mobile phone that will likely only include standard voice and SMS service. Asia Pacific could potentially produce an additional 1.4 billion new subscribers with a new SMS traffic. In 2011, the emergence of smartphones and wireless Internet services in North America, which was initially slower to adopt SMS services, could be the driving factor of why MIM (mobile instant messaging) could potentially replace SMS as a messaging service by 2011. Still, wireless operators, says Portio, will have to be careful to not cannabilize their SMS revenues by striking a balance between SMS and MIM pricing.