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Wireless Media

Operator Messaging Revenue Will Decline 12 By 2017



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Report Summary:

Intense rivalry between operators and the growing popularity of over-the-top (OTT) instant messaging (IM) services like WhatsApp, Line Messenger and Tencent’s QQ is negatively impacting mobile operators’ messaging businesses. In 2011 consumer expenditure on operator messaging increased by just 2.5%. Strategy Analytics forecasts operator revenue from traditional mobile messaging to peak this year at over $105 B and decline at a 2.5% CAGR until 2017. Despite our prediction of falling messaging revenue SMS will remain the popular mobile messaging platform over the next 5 years and will account for just over 50% of total messages sent by mobile phones. While RCS/ RCS-e enables mobile operators both to evolve mobile messaging beyond SMS and MMS and keep operators relevant in mobile messaging, it will not mitigate the decline in messaging revenue. Strategy Analytics’ latest mobile messaging forecast indicates that by 2017 293 million users of RCS/ RCS-e based services will generate $370 million revenue for mobile operators.

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