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SMS Revenue Trumps that of Other Mobile Data Services

6:55 am on February 15, 2009 | Category: Messaging, Telecom Services, Wireless

Wireless carriers around the world continue to develop a wide range of advanced mobile data applications, hoping to make up from lower voice ARPU (average revenue per user). Text messaging, however, is still the most popular data service, by far.

Seen as simple, reliable, and ubiquitous, SMS messaging is a preferred method of communication for hundreds of millions of customers. Because of this, revenue from SMS services has been largely unaffected by the global economic downturn.

“SMS may be a basic, cheap technology, but it still has much life as a MNO cash cow,” commented In-Stat analyst, Frank Dickson. “The keys to SMS profitability are its ease-of-use, inexpensive price tag, global reach, and increased reliability as infrastructure development increases in more rural global regions. In developed areas, however, it has become increasingly important for mobile operators to find ways to enhance and personalize the SMS service offering.”

Customers who frequently use SMS services also tend to use more voice minutes than other users, according to a recent survey by In-Stat. This suggests that promoting messaging services may be more beneficial to ARPU than the development of other data applications.

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