-- Competition From OTT Messaging Apps Leads to Downgraded Operator Messaging Outlook
BOSTON, June 4, 2015 /PRNewswire/ -- The popularity of Over-The-Top (OTT) messaging applications will continue to harm operators' revenue from SMS as growing smartphone penetration and access to mobile data enables mobile users to switch from 'metered and basic' operator messaging to 'free and feature rich' OTT IM (Instant Messaging) services like WhatsApp and LINE to meet their mobile messaging needs. According to the latest report from Strategy Analytics' Wireless Media Strategies (WMS) service, titled Mobile Messaging Forecast Update: 2001-2021, operator revenue from SMS and MMS will decline 42 percent to below $53 Billion by 2021 as a consequence of the demand for OTT messaging services.
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The global base of active over-the-top (OTT) messaging users increased by over 40 percent during 2014 with the average user sending over 900 messages per user per month, over 8 times more than the average user of SMS services.
According to Nitesh Patel, Director of Strategy Analytics' Wireless Media Strategies, "While operator messaging will not become extinct given the scale of SMS to reach any device on any network, it is clear mobile users are becoming less dependent on SMS and more reliant on OTT IM as they upgrade to smartphones and have access to data over mobile or over WiFi networks, or both. Even the broader availability and adoption of RCS-based operator messaging service towards the end of the decade will not be enough to compensate the decline in operator messaging services."
Strategy Analytics' mobile messaging forecast update provides forecasts for mobile messaging users, usage and revenue across SMS, MMS mobile IM and email.
David Kerr, Senior Vice President at Strategy Analytics noted "Having built large bases of users, popular Asian-based OTT messaging apps Line Messenger, Kakao, and WeChat have introduced features such as sticker shops, games and app distribution, virtual currencies, and sponsored channels to drive direct and in-direct revenue growth. Facebook Messenger and BBM are also beginning to follow similar monetization strategies. Consequently, by 2021 we forecast global revenue for OTT messaging services to approach $13 B in revenue."
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