Sunday, July 29, 2012

[ABI Research]: OTT Messaging Cannibalizes SMS Revenue

While Infonetics Research data shows that "SMS growing every year from 2012 to 2016" (here) a new repost from ABI Research finds that "'Messages Sent' is also experiencing slow-downs but more so in emerging markets than developed markets .. A number of operators, such as Singtel and Vodafone, have started to counter OTT apps such as Whatsapp by increasing the quota of bundled SMS their end-users are allocated. Such initiatives may come across as closing the stable door after the horse has bolted. However, there are indications that OTT messaging platforms eclipse SMS in all aspects".

"Often Whatsapp end-users only use the messaging platform for a select number of contacts in their Whatsapp list. There have been privacy concerns regarding contact lists held on the Whatsapp server; slow delivery times when data coverage is sparse; as well as contributing to maxed out data quotas if the user is on a limited data plan".

See "OTT Mobile Apps Such as Whatsapp, Boost Mobile Data Usage and Cannibalize SMS Revenue" - here.

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