Rise of instant messaging spells the end of text, predicts Deloitte

But for now, SMS still account for lion’s share of revenues

50x total revenues from all IM - shedd

Only a third of Britain’s 1.2 billion phone messages will be sent this year [2014] by traditional SMS as mobile apps become the preferred means of staying in touch. That’s the conclusion of a Deloitte Technology, Media and Telecoms (TMT) survey, which says that a seachange in consumer behaviour towards instant messaging (IM) is sounding the death knell for text.
But, it says, though OTT mobile apps like WhatsApp and Viber are becoming increasingly popular, SMS still dominates the amount of earnings generated by mobile messaging.

It will still account for an estimated 98 per cent of revenues this year [2014].

Commented Ed Shedd, Deloitte’s head of UK TMT, “Despite the growth in instant messaging services, we expect text messages to generate more than £60 billion globally.”

“This is about 50 times the total revenues from all instant messaging services.”

Worldwide, Deloitte predicts that 50 billion instant messages will be sent every day this year [2014], more than double the 25 billion SMS messages that will be sent.

In a side note, Deloitte also predicts that more than half of UK consumers will own or have access to a tablet by the end of this month [January 2014].

About Dave Evans

Dave Evans is a long established commentator on both the IT and cellular industries. His current focus is on share price trends within the sector. You can email him here
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One Response to Rise of instant messaging spells the end of text, predicts Deloitte

  1. This is understandable around the globe, except in the U.S. This is because over 70% of subscribers in the United States are enrolled in “unlimited” text plans. Therefore, most pay a flat fee, such as $10US, to have unlimited texting. Because of this, the normal OTT players like WhatsApp and Viber, don’t really offer that much of a financial incentive.

    Now, one might say “but you are still paying $10″, and the answer is yes we are. However, if we had WhatsApp, we would still be being charged 20 cents per text for every text we receive or send to folks not using an OTT messaging app, which is the vast majority in the states. So, we would quickly get to $10/month if only 50 messages came in from friends/family/work who did not have our chosen OTT messaging app.

    Therefore, yes, understand for places outside the U.S., but these apps don’t really offer US subscribers the benefits found in other places of the globe.

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