Newsletters
News & Information for Technology Purchasers NewsFactor Sites:       NewsFactor.com     Enterprise Security Today     CRM Daily     Business Report     Sci-Tech Today  
   
This ad will display for the next 20 seconds. Click for more information, or
Home Enterprise I.T. Cloud Computing Applications Hardware More Topics...
Eliminate costly downtime!
Find out how with Free White Paper
& enter to win a Samsung Galaxy Note

www.apc.com
Mobile Tech
24/7/365 Network Uptime!
Average Rating:
Rate this article:  
Chat Apps
Chat Apps' Message Volume Overtakes Traditional SMS

By Barry Levine
April 29, 2013 11:03AM

    Bookmark and Share
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.
 



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:



APC has an established a reputation for solid products that virtually pay for themselves upon installation. Who has time to spend worrying about system downtime? APC makes it easy for you to focus on business growth instead of business downtime with reliable data center systems and IT solutions. Learn more here.


 Mobile Tech
1.   Virgin Mobile Offers Custom Plans
2.   Asana Revamps Mobile App
3.   Android 'Fake ID' Puts Millions at Risk
4.   FTC Wants Fix for Mobile Cramming
5.   Facebook To Force Use of Messenger


advertisement
Android 'Fake ID' Puts Millions at Risk
Users: stick to apps from Google Play.
Average Rating:
Dell, BlackBerry Downplay Threat
Say Apple-IBM alliance can't hurt them.
Average Rating:
BlackBerry Acquires Secusmart
German security firm offers street cred.
Average Rating:
Product Information and Resources for Technology You Can Use To Boost Your Business

Network Security Spotlight
Tor Internet Privacy Service Warns Users It Was Breached
You may never have heard of the Tor Project, but the Internet privacy service is making headlines. Tor’s devs say users might be victims of an attack launched against the project earlier this year.
 
Canadian Government Charges China With Cyberattack
The government of Canada is not happy with China. Canadian officials have accused "a highly sophisticated Chinese state-sponsored actor" of launching a cyberattack on its National Research Council.
 
Researchers Working To Fix Tor Security Exploit
Developers for the Tor privacy browser are scrambling to fix a bug revealed Monday that researchers say could allow hackers, or government surveillance agencies, to track users online.
 

Enterprise Hardware Spotlight
AMD's ARM-Based Opteron Out in $3K Dev Kit
It's dubbed "Seattle" and it's AMD's first 64-bit ARM-based Opteron processor. The low-power chip is being released as part of AMD’s Opteron A1100-series developer kit, and aimed at high-end data center needs.
 
Apple Updates MacBook Pros, Cuts Prices Up to $100
The popular MacBook Pro laptop line just got an update and a price cut of as much as $100. The MacBook Pro with Retina display now includes faster processors and double the memory.
 
Dell, BlackBerry Not Sweating Apple-IBM Alliance
IBM's recent move to partner with Apple to sell iPhones and iPads loaded with corporate applications has excited investors in both companies, but two rivals say they are unperturbed for now.
 

Mobile Technology Spotlight
Virgin Mobile Offers Custom Smartphone Plans
As the wireless carrier wars continue heating up, Virgin Mobile just threw the customization coal onto the fire. The firm has debuted a no-annual-contract plan with rates based on individual use.
 
Collaboration Provider Asana Revamps Mobile App
Asana, a collaboration software provider started by a Facebook founder, is now out with a rebuilt native iOS mobile app. It replaces one that even the company admits was not up to par.
 
Facebook: You Will Use Messenger, and You Will Like It
Starting this week, Facebook users with Android and iOS phones will be forced to use the separate Messenger app to send Facebook messages. Pending messages will still be visible in the main app.
 

Navigation
NewsFactor Network
Home/Top News | Enterprise I.T. | Cloud Computing | Applications | Hardware | Mobile Tech | Big Data | Communications
World Wide Web | Network Security | Data Storage | 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.