MWC 2012: Operators face SMS revenue decline as IP messaging trend bites

(PresseBox) (London, ) Acision has reported that SMS still dominates mobile messaging. However, operators have been taking steps to launch IP-based messaging services in an effort to remain competitive in the messaging market.

There is no doubt that SMS is currently a sound revenue stream, with the service earning operators approximately $153bn in 2011. However, as Ovum's report The Casualties of Social Messaging reveals, there is an increasing shift towards IP-based messaging. Even though this shift is bound to smartphone users, it has still managed to cost operators $13.9bn in messaging revenues. This loss accounts for 9% of total messaging revenues, and is large enough to make operators sit up and take notice of this emerging threat.

In response, many operators are planning to offer their own IP-based voice and messaging services, including through the rebranded RCS, which will be known as "Joyn".

For more information on Joyn, see Ovum's MWC comment Another year, another RCS Announcement.

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