Wednesday, July 18, 2007

Mobile data is NOT killing SMS

I just read about a recent Informa report that total mobile data revenues (excluding SMS) in the US were $11.3 billion in Q1 07, up 40% from last year. This number represents one third of all data revenues. The rest is SMS.

So you would guess that mobile data services (including email and IM) are eating into the SMS plate.


SMS usage is up 50% worldwide, with 620 billion messages sent in Q1. SMS revenues are up as well ($34.3 billion in a quarter!), although they do not follow the growth in messages directly, because of the bundles.

How do you read this? Well, let me try:
  1. Consumers want messaging more than ever
  2. Consumers are still willing to spend a lot of money on messaging
  3. If you add email and IM in the mix, that does not kill SMS
  4. Email and IM are additional sources of significant revenues for carriers
If you are a carrier, this is the time for consumer mobile email...