News & Information for Technology Purchasers NewsFactor Sites:       NewsFactor.com     Enterprise Security Today     CRM Daily     Business Report     Sci-Tech Today  
   
Home Enterprise I.T. Cloud Computing Applications Hardware More Topics...
GET RECOGNIZED
Let an ISACA® certification elevate your career.
Register today and save
You are here: Home / Mobile Tech / Chat Apps' Traffic Overtakes SMS
DDoS Protection Powered By Verisign
Chat Apps' Message Volume Overtakes Traditional SMS
Chat Apps' Message Volume Overtakes Traditional SMS
By Barry Levine / NewsFactor Network Like this on Facebook Tweet this Link thison Linkedin Link this on Google Plus
PUBLISHED:
APRIL
29
2013



Is it impending curtains for SMS? A new report finds that traffic for chat apps have overtaken short message services (SMS) for the first time.

The report, from the research firm Informa, said that nearly 19 billion messages were sent daily on chat apps last year, while SMS texts shipped a mere 17.6 billion. If the trend continues, the changing preference could mean more than simply a different way to send text and other messages to individuals via your mobile device. It could mean a substantial revenue hit for telecommunication carriers.

Another researcher, Ovum, has estimated that more than $23 billion of revenue from SMS was lost to carriers last year because of the rise of chat apps.

'Identity Is Slippier'

Informa said that chat apps, such as the popular WhatsApp, are expected to extend their lead over SMS. It projected almost 50 billion daily chat messages by the end of next year, with SMS at about 21 billion. This is still an increase in SMS, but not at the rate that chat apps are growing. Nevertheless, Informa analyst Pamela Clark-Dickson said "there is a lot of life still in SMS."

Clark-Dickson noted that chat apps are most often used on smartphones in the developed countries, while there are fewer smartphones and a greater use of SMS in developing countries, where data plans and Wi-Fi are not as ubiquitous. Because of these kinds of factors, Informa expects SMS revenue to grow to about $127 billion by 2016, from about $115 billion in 2012.

Brad Shimmin, an analyst with Current Analysis, said texting is very popular in some developed countries as well, such as the U.K.

He noted that "identity is slippier" for chat apps, since users can change their names. SMS, on the other hand, is sent to a more permanent phone number. If chat apps take over, Shimmin said, it would be something of "a step backward, because you'd be giving up the connectedness between two devices." Chat apps, on the other hand, "put their faith in the cloud."

Messaging Frequency

Shimmin said chat apps potentially offer "so much more" in terms of carrying multimedia, and there are untapped opportunities for carriers, such as carrier-connected apps or value-added services.

But SMS still has more users. Informa estimates there were 3.5 billion SMS users last year, compared with about 586 million users of chat apps. However, the report only evaluated six of the many chat apps -- WhatsApp, Blackberry Messenger, Viber, Nimbuzz, Apple's iMessage and KakaoTalk. Some of the many other apps include Facebook Messenger for Android, estimated to have 100 million to 500 million installations, and China's TenCent, with something in the vicinity of 300 million users.

Chat apps are used more frequently, with an average of 32.6 messages daily for the average user, compared with just five SMS texts. A key reason for the discrepancy could be that carriers often charge for texts, while chats are free for users with data plans. However, many text users have unlimited texting plans. Additionally, chat users could be SMS users as well, and vice versa, especially since texts can communicate to any phone while chat apps require compatibility and a smartphone on the other end.

Some device makers are following the traffic. Last week, for instance, device maker Nokia announced that it was releasing a low-priced phone for developing countries, the Asha 210 in both single- and dual-SIM versions, that would feature a dedicated hard key for WhatsApp, as well as a free subscription to that service.

Tell Us What You Think
Comment:

Name:

Like Us on FacebookFollow Us on Twitter
TOP STORIES NOW
MAY BE OF INTEREST
Salesforce.com is the market and technology leader in Software-as-a-Service. Its award-winning CRM solution helps 82,400 customers worldwide manage and share business information over the Internet. Experience CRM success. Click here for a FREE 30-day trial.
MORE IN MOBILE TECH
Product Information and Resources for Technology You Can Use To Boost Your Business

Network Security Spotlight
Russian Gang with Stolen IDs Hacks Hosting Company
In August, a Russian cyber gang obtained what researchers called “the largest cache of stolen data." Now, those hackers may be putting their ill-gotten gains to criminal use.
 
Dairy Queen Latest Retailer To Report Hack
Known for its hot fries and soft-serve ice cream, Dairy Queen just made cyber history as the latest victim of a hack attack. The fast food chain said that customer data at some stores may be at risk.
 
Lessons from the JPMorgan Chase Cyberattack
JPMorgan Chase is investigating a likely cyberattack. The banking giant is cooperating with law enforcement, including the FBI, to understand what data hackers may have obtained.
 

Enterprise Hardware Spotlight
AMD's New FX Series CPU Breaks Processing Speed Record
The new FX-8370 processor from Advanced Micro Devices has set a record for silicon processor speed, the company announced. Overclocked, the eight-core chip was measured at 8722.78 MHz.
 
Intel Intros Lightning-Fast PC Processors
Call it extreme. Intel just took the covers off its first-ever eight-core desktop processor, which is aimed at hardcore power users who expect more than the status quo from their computers.
 
HP Previews ProLiant Gen9 Data Center Servers
Because traditional data center and server architectures are “constraints” on businesses, HP is releasing new servers aimed at faster, simpler and more cost-effective delivery of computing services.
 

Mobile Technology Spotlight
Rumor Mill Puts Mobile Wallet in iPhone 6
Apple is moving toward the mobile wallet world with its next iPhone. The tech giant has partnered with retailers, banks and major payment networks to make it happen, according to Bloomberg.
 
Will iPhone Finally Catch Up with NFC Mobile Payment Ability?
Apple's latest version of the iPhone may have a mobile wallet to pay for purchases with a tap of the phone. The iPhone 6 reportedly is equipped with near-field communication (NFC) technology.
 
Visual Search To Shop: Gimmick or Game Changing?
Imagine using your phone to snap a photo of the cool pair of sunglasses your friend is wearing and instantly receiving a slew of information about the shades along with a link to order them.
 

Navigation
NewsFactor Network
Home/Top News | Enterprise I.T. | Cloud Computing | Applications | Hardware | Mobile Tech | Big Data | Communications
World Wide Web | Network Security | CRM Systems | Microsoft/Windows | Apple/Mac | Linux/Open Source | Personal Tech | Press Releases
NewsFactor Network Enterprise I.T. Sites
NewsFactor Technology News | Enterprise Security Today | CRM Daily

NewsFactor Business and Innovation Sites
Sci-Tech Today | NewsFactor Business Report

NewsFactor Services
FreeNewsFeed | Free Newsletters

About NewsFactor Network | How To Contact Us | Article Reprints | Careers @ NewsFactor | Services for PR Pros | Top Tech Wire | How To Advertise

Privacy Policy | Terms of Service
© Copyright 2000-2014 NewsFactor Network. All rights reserved. Article rating technology by Blogowogo. Member of Accuserve Ad Network.