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North American Mobile Messaging Markets Estimate to Reach $76.45 billion in 2014 - Mobile carriers profit heavily from short message services (SMS) and multimedia messaging services (MMS), with volumes more than doubling annually
North American Mobile Messaging Markets Estimate to Reach $76.45 billion in 2014

 

NewswireToday - /newswire/ - Mountain View, CA, United States, 2008/12/09 - Mobile carriers profit heavily from short message services (SMS) and multimedia messaging services (MMS), with volumes more than doubling annually.

   
 
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The North American mobile messaging market is in a state of rapid adoption and high revenue growth, with billions of dollars generated in SMS revenue from a user base that covers half of the mobile user population in the region.

New analysis from Frost & Sullivan (wireless.frost.com), North American Mobile Messaging Markets, finds that the market earned revenues of $24.84 billion in 2007 and estimates this to reach $76.45 billion in 2014.

If you are interested in a virtual brochure, which provides manufacturers, end users, and other industry participants with an overview of the North American mobile messaging markets then send an email to Mireya Castilla, Corporate Communications, at mireya.castilla[.]frost.com, with your full name, company name, title, telephone number, company email address, company website, city, state and country. Upon receipt of the above information, an overview will be sent to you by email.

Although the SMS segment will continue to be profitable in the short term, wireless e-mail and wireless instant messaging (IM) are slowly closing the gap with SMS and MMS. This transition will test mobile carriers' ability to continue generating substantial revenue from SMS and MMS, while promoting the adoption of e-mail and IM.

Mobile carriers can sustain SMS usage by slightly modifying their business plans to lower message charges or offer monthly SMS rate plans.

"Reductions in SMS pricing will increase revenue because SMS use continues to double every year in terms of volume," says Frost & Sullivan Strategic Analyst Daniel Longfield. "A small decrease in SMS per unit price will help to drive larger message volumes, increasing total messaging revenue."

The MMS segment also holds great attraction for mobile operators. In fact, since MMS trails the SMS segment in terms of volume and number of subscribers, it has greater untapped revenue potential than the latter.

Currently, the MMS segment's year-on-year growth rate has outstripped that of the SMS segment and it more than doubled every year. This remarkable expansion of subscriber base is the primary reason why MMS is tipped to outrace SMS in terms of subscriber percentage, revenue, and unit growth rates.

MMS usage could also get a leg up with the advances in camera functionality in the latest mobile devices, as it provides users with enhanced-quality pictures and video.

"These pictures and video are excellent opportunities for mobile operators because they can educate their subscribers on ways to turn pictures and video into MMS messages and send them through the carrier's mobile network," notes Longfield. "Camera handsets with more mega pixels, increasing carrier libraries of content, and e-mail convergence, are all strong drivers of MMS usage in North America."

North American Mobile Messaging Markets is part of the Mobile & Wireless Growth Partnership Service program, which also includes research in the following markets: mobile devices, enterprise wireless use, location-based services, mobile messaging, marketing, and video. All research services included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants. Interviews with the press are available.

Frost & Sullivan, the Growth Partnership Company, partners with clients to accelerate their growth. The company's TEAM Research, Growth Consulting and Growth Team Membership™ empower clients to create a growth-focused culture that generates, evaluates and implements effective growth strategies. Frost & Sullivan employs over 45 years of experience in partnering with Global 1000 companies, emerging businesses and the investment community from more than 30 offices on six continents.

North American Mobile Messaging Markets
N278-65

 
 
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Written by / Agency / Source: Frost & Sullivan

 
 

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North American Mobile Messaging Markets Estimate to Reach $76.45 billion in 2014

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Frost & Sullivan |
Publisher Contact: Mireya Castilla 
210.247.3830 mireya.castilla[.]frost.com
 
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