Growth in the volume of text messaging is slowing sharply, just as new threats emerge to that lucrative source of wireless carrier profits. Text traffic will come under more pressure in the months ahead. Recently, Apple showed off an application that will allow iPhone and iPad owners to bypass carriers and send text messages over the Internet to other people with Apple devices.

Google is reportedly developing its own messaging service, right after Apple introduced iMessage at WWDC. Indeed, it appears that the SMS era is living its last days. Google “has also recently worked on a messaging application, a person familiar with the matter said”, The Wall Street Journal recently reported.

Android To Emulate Apple’s iMessage with its own Version:

Google already has a messaging service available on Google Mail. Google Talk runs on the Jabber Instant Messaging Protocol but a similar service for mobile device is unlikely to appear, since the protocol functions only if the data connection is stable.

Consumers will definitely draw the utmost advantage from this new service since they will be able to send free messages to their friends. On the other hand, carriers will be at the losing end since their customers will no longer use their SMS services. This offering is a major revenue source for carriers and their profit will certainly plummet once Apple and Google release their instant messaging services. Indeed, it appears that by introducing IM services, rival handset makers have decided to make an alliance against carriers.

Users can pay up to $20 every month for an unlimited SMS plan and 80% of the money represents the profit that goes into carriers’ pockets. In the case of data and voice fees, only 35% of the money customers pay represent the sheer profit for carriers, Venture Beat informed.

Government official have also demanded carriers an explanation for the high tariff on SMS, but they have been unable to provide one. No surprise here!


Source: WSJ.

Moreover, revenues from text messaging service are already dropping even without Apple’s and Google’s services launched. For example, the US carrier AT&T reported a 20% drop in text messaging use compared to last year, UBS revealed. Taking into account this detail, carriers must really be very worried now when thinking about the future prospects for SMS service.

What carriers can do is try to exploit the so-called “dumbphone” users since their low tech handsets are incompatible with mobile instant messaging services.

RIM’s Blackberry Messenger seems to be the IM service that made mobile device manufacturers develop their own IM platforms. With three different data network IM services, there is no doubt that SMSs will fade away. All the consumers who have been pumping money into carriers’ pockets will soon be able to watch and enjoy the death of the SMS and say that justice has been done.