[Strategy Analytics]: OTT Messaging will Reduce SMS Revenues by 20%

A new report by David MacQueen [pictured], Director, Media & Apps, Strategy Analytics  finds that "Global expenditure on operator messaging services, which includes SMS and MMS, declined for the first time in 2013 following its peak in 2012 ..  operator revenue from messaging services fell by almost 4 percent last year to just below $104 Billion. Continued intense competition for subscribers between operators combined with the fast growing popularity of over-the-top instant messaging services like WhatsApp, Line Messenger and Tencent’s WeChat will drive a 20 percent fall in global operator messaging revenue by 2017".

"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 offset the current decline in messaging revenue. We forecast that by 2017 there will be just below 180 million users of RCS/ RCS-e based services. However, RCS/ RCS-e messaging will contribute little direct revenue for mobile operators. To offset lower consumer spend levels, carriers should aim to tap opportunities such as mobile marketing, or increase innovation by opening up SMS platforms to businesses and the developer community"

See "Operator Messaging Revenue to Decline 20 percent by 2017" - here.

SK Telecom Fights OTT Services and Signaling Load

SK Telecom continues its fight against OTT. After trying to protect their voice and messaging revenues by blocking access to competitive internet based services (see "Complaint against SK Telecom & KT for Blocking VoIP over 3G (Using DPI)" - here), the MNO is now launching its own services.

Mobile World l!ve reprots from GSMA MOBILE ASIA EXPO 2012 that "South Korea’s largest mobile operator SK Telecom (SKT) is fighting back against a number of Over-The-Top (OTT) players that have become hugely popular in the country in recent years, promising the imminent launch of an RCS-based service and further deployment of its Smart Push technology"

Dr. Choi Jin-Sung (pictured), SVP and Head of SKT’s Technology Strategy Office, told Mobile Asia Daily: “Korean mobile carriers are experiencing difficulties, including decreased SMS revenues and increased network investment cost to accommodate surging traffic, caused by the popularity of various free messaging services .. KaKao Talk, a mobile messaging service used by 37 million Koreans (46 million subscribers globally as of May 2012), is fast becoming a threat to mobile operators as it has recently launched a mVOIP service. And these OTT service providers are expected to evolve into a UC (Unified Communication) platform after securing subscribers based on their messaging services”

About the notorious signaling/keep-alive problem:

"At the same time, the company is applying Smart Push, its home-grown technology that enables integrated management of keep-alive signals, to prevent network overload .. Here, the opening up of the Smart Push technology is an exemplary case where all stakeholders including mobile carriers, OTT service providers and customers gain benefits .. SK Telecom has also entered into MOUs with Samsung Electronics and NSN to promote overseas exports of Smart Push-embedded network equipment”

See "SK Telecom fights OTT rivals" - here.

TeliaSonera Likes OTT. However, …

Mobile Business Briefing reports from the Open Mobile Summit 2012, held in London this week on TeliaSonera's mobility head, Hakan Dahlstrom (pictured) presentation.

Mr. Dahlstrom spoke about their LTE success ("140,000 4G users in Sweden"), smartphone data consumption (" the average smartphone user in the Nordics is consuming 300MB of data per month and that this is set to increase to 3GB per month in just a few years"), mobile broadband consumption ("Mobile broadband users are on track to consume 45GB per month within five years").

The more interesting statements were about the complex relations with Over the Top content providers: ".. The OTT players are increasing the value of the access we are providing to the end user [and] our role is to support this behaviour .. Access is separate from services. We will treat [the OTT players] like our own services but we will provide alternatives .. To this end, he said that TeliaSonera was planning an RCS-based communicator to compete with the likes of WhatsApp and Skype .. Not everyone needs to go with our communicator but our customers are asking for this".

See "TeliaSonera touts 4G progress and OTT alternatives" - here.