Tuesday, February 27, 2007

SMS to be $67bn Industry by 2012

A report from Portio Research is forecasting SMS revenues to reach $67 billion. The increase is mostly attributed to an expected increase in mobile subscriber base from 2.61 to 4.81 billion, sending 3.7 trillion messages. The Asian markets are expected to grow the fastest, comprising 50% of the subscriber base by 2008.

SMS accounts for approximately 75-80% of carrier's non-voice plan revenue, with voice plans comprising 80% of worldwide mobile revenue. Competition amongst carriers has been eroding voice margins and mobile content providers for ring tones and wallpapers are on their last legs, with users more easily accessing content over the internet. Consequently, carriers should be turning their attention to other higher value data services. SMS has been the fastest growing messaging service, but the pricer MMS, e-mail, and mobile IM are expected to grow healthily as well.

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