SMS turns 20, use set to rise 40% by 2016
Source: Bloomberg News |
December 4, 2012, Tuesday
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Print Edition
Print Edition
TEXT messages turned 20 years old yesterday and their use may rise 40 percent by 2016, even as mobile phone owners increasingly rely on Facebook and WhatsApp to communicate.
The first SMS, or short message service, text was sent over Vodafone Group Plc's network on December 3, 1992 with the message "Merry Christmas." By 2016, users may send 9.4 trillion texts, generating US$127 billion in revenue, up from 6.7 trillion forecast for this year, researcher Informa Plc said.
SMS became a key source of income for carriers worldwide, initially costing users a few cents per text and eventually becoming wrapped into unlimited voice and data plans. As more customers have switched to smartphones, with better access to the Internet and more applications, people are increasingly using chat features on Facebook and other websites.
"The concern for mobile operators is that the malaise that SMS faces in countries such as the Netherlands, Spain, China, South Korea and the Philippines, where SMS traffic and revenues are in decline, will inevitably spread, as the penetration of smartphones and mobile broadband grows," Informa said in a note.
Growth will come via emerging markets in Africa, Asia and Latin America, Informa said.
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