A report by Analysis firm Ovum claims that mobile networks are losing billions as mobile phone users turn to internet based messaging solutions.
More and more users are turning to Social messaging applications such as Facebook Chat, Whatsapp and BBM, leaving networks out of pocket to the sum of almost £9 Billion in 2011.
The report took stats from the leading social messaging applications used in major Western Markets, which includes apps like MXit, which is immensely popular in South Africa.
Whilst revenues from SMS are down, SMS is still the dominant messaging platform, with a recent YouGov survey showing 81% of smartphone users consider SMS to be the key way to send messages. However the report highlights a trend that is gradually moving away from text messaging.
The author of the report, Neha Dharia, says operators need to look to form alliances with the major players in the internet messaging arena: “Operators must remain open to partnering with app developers,” she said, “sharing end-user data with them and allowing integration with the user's social connections.”
“Working closely with handset vendors will also be important; they control some of the most popular social messaging apps, and can also provide preloaded applications.”
Whilst the loss of revenue is a blow to networks, it is not all bad, as the increase in data usage offers an alternative income stream. Experts also state that effective costings on mobile plans can also help offset any losses.
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