Rising popularity of instant messaging platforms is beginning to eat into operator's revenues from SMS services. For the first time the average number of short messages sent by mobile users every month has declined according to data available with the Telecom Regulatory Authority of India.
“Mobile users, especially the youngsters now prefer using Instant messaging platforms such as the Blackberry Messenger and WhatsApp. The ease of use and cost effectiveness makes it better,” said a Vodafone executive.
One of the reasons for the popularity of Instant messaging is that it works out cheaper than SMS. Most instant messaging services are available at a flat rate of Rs 100 a month. With this one can send unlimited messages to any number of contacts. “In addition there is also the benefit of group chat,” said Mr Vivek Gupta, a Gurgaon based student who has completely stopped sending SMS. It also allows users to share their location, or exchange pictures, videos, voice notes, files and more with their contacts. Short messages pale in comparison. The only advantage that SMS has is that it is available across all types of phones while Instant Messaging is on mid and high-end smart phones. But there a number of messaging platforms mushrooming such as RockeTalk, which can be used on even low-end devices for free.
As a result, the average number of SMSes has declined from 45 to less than 43. Although the decline is marginal it's the beginning of the slide, according to market experts. But operators are not worried as revenue lost from SMS is being more than recovered from the data plans. Operators have in fact partnered with the messaging solutions providers to offer attractive plans to customers. “Going forward as data services becomes more and more important from the revenue point of view, instant messaging is one of the applications that will drive this,” said a Delhi-based operator.
Globally, this trend is already happening. Research by TNS of 17,000 people in 30 countries revealed that once users adopt mobile instant messaging services they reduce their use of text messages.
“Of every 100 messages – including texts, emails and picture messages – sent by users without mobile instant messaging from their mobile phone or computer, 38 are text messages. Once consumers start using mobile instant messaging, the number of texts falls to 23 per 100,” the report says.