IM to drive doubling of mobile messaging traffic
VALUE ADDED SERVICES| Sept. 17, 2012, 11 a.m.
A new report from analyst firm Juniper Research forecasts that global mobile messaging traffic will reach 28.2 trillion annually by 2017, nearly double the 14.7 trillion messages which will be sent this year, 2012. Mobile messages comprise SMS, MMS, IM, Email, RCS/RCS-e and Social Media messages.
Growth in total traffic will be primarily driven by the use of instant messaging services, which will comprise over a quarter of all traffic annually in five years’ time according to Juniper’s analysts.
So-called OTT (Over-the-Top) services such as eBuddy, iMessage, Nimbuzz and Whatsapp are already having an impact on mobile network operators’ messaging businesses, as smartphone owners find instant messaging a cheaper alternative. Until recently, most smartphone owners would have had contract subscriptions with ample messaging allowances, but with the cost of these devices falling, more and more price-conscious prepaid subscribers will be able to access these services.
Nevertheless, Juniper’s forecasts show that revenues from traditional operator services – SMS and MMS – will continue to dwarf those of instant messaging. Many IM services are operated by hardware vendors and Internet brands driving consumers to their primary products, while those that are monetised directly are reliant on in-app advertising.
Aside from finding more sustainable business models, some IM service providers also need be concerned with overcoming fragmentation between communities. According to report co-author Daniel Ashdown: “SMS is 30 years old; but it is still going strong because a text message will reach almost anyone.”
Juniper’s report finds that some OTT players are overcoming this problem, with NUVOs (Network Unaffiliated Virtual Operators), who provide their users with a real phone number, such as Pinger and textPlus having been successful in the North American markets.
MORE VALUE ADDED SERVICES NEWS
MTN Swaziland offers mobile financial services with EricssonMTN has deployed Ericsson Converged Wallet to provide a premium mobile money experience for more than 275,000 mobile wallet users and 3,000 agents in Swaziland. Read More
Airtel, Kenya Red Cross launch public emergency information serviceBharti Airtel has teamed up with Kenya Red Cross Society to launch the first of its kind public emergency information service in Kenya. Read More
EcoCash gets SA approvalEcoCash and its South African partners have secured approval from the South Africa Reserve Bank to start a cross border remittance service from South Africa. Read More
KTDA, Safaricom partner on cashless paymentLeading tea management agency, Kenya Tea Development Agency (KTDA), has partnered with Safaricom to roll out a cashless payment solution at all its 66 factories across the country. Read More
Airtel launches first mobile tap and pay system in GhanaAirtel Ghana has added another first to its credits as it has rolled out an innovative service through their Airtel Money that allows a tap and pay, contactless payment based on the Near Field Communications (NFC) technology. Read More
Vodafone gives hope to Ghanaian Farmers with Vodafone Farmers ClubGhanaian farmers can now receive relevant crop and location specific information in their own language through a bespoke SIM card. Read More
Standard Bank introduces a first in SA: smart watch bankingStandard Bank today announced plans to embrace wearable technology, with the forthcoming release of its Apple Watch banking app in SA. Read More
Prepay Nation, Airtel Kenya to offer international mobile top-upPrepay Nation, a leading provider of cross-border prepaid mobile airtime transfers, has announced its partnership in Kenya with Bharti Airtel. Read More
SimbaPay launches international access to M-Pesa PayBillSimbaPay has launched the first product to allow Kenyans living abroad to make M-Pesa PayBill payments. Read More
FEATURED STORYIHS plans to inject fresh $500m to grow capacity
Mohammed Darwish, managing director of IHS Towers, says the firm will soon inject another $500million into the business after raising some $2.5billion to finance expansion drives. Darwish spoke with biztecafrica.com in Lagos.
BEST READ NEWS
IN DEPTHAs curtain falls on MDGs, what next?
Dr. Bjorn Lomborg, president of the Copenhagen Consensus Centre, speaks to Biztechafrica about setting smart targets.