Social media costing mobile phone companies

22/02/2012

Social Media Costing Mobile Phone Companies

People that are finding better ways to communicate via text and thus bypassing telecom operators' SMS offerings are costing mobile phone operators millions, it has been claimed.

Analyst firm Ovum said that consumers that are increasingly using IP-based messaging services on their smartphones cost operators up to $13.9 billion (£8.8 billion) last year and $8.7 billion in 2010.

Consumer analyst at Ovum and author of the report The Casualties of Social Messaging Neha Dharia said that social messaging has disrupted traditional services and operators' revenues in this area will come under increasing pressure.

"This threat will drive telcos to consider alternative sources of revenue, such as mobile broadband. And now the market has been tested, operators know what types of messaging services work," she continued.

It appears that SMS messaging is going the same way as landlines as research recently suggested that there has been a sharp decline in the number of home telephones purchased in the last six years as new mobile phones are preferred.

Posted by Samantha Green

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