Global SMS revenues to hit $165 bn by 2011

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Revenues from mobile messaging are set to grow to 165 billion dollars by 2011 across the world, driven by the strong growth in India, China and North American markets, a global messaging firm forecasts.

Mobile messaging revenues are expected to grow to 165 billion dollars globally by 2011, according to the leading messaging firm Acision, which provides communication solutions to over 300 network operators and service providers globally.

The forecast is 200 per cent higher than previous industry predictions by consulting firm Ovum at 116 billion dollars by 2011.

"Since its inception 15 years ago, mobile messaging has delivered a 6,000 per cent return on investment, but the growth phase is not yet over, with markets such as India, North America and China seeing phenomenal traffic increases," Acision said.

Besides, messaging still holds huge growth potential within the more mature markets of Western Europe and South East Asia, it added.

Acision also gave a five step action plan which can help operators to double their messaging revenues in the next four years.

The steps include personalising the messaging experience with added functionality relevant to specific consumer and enterprise segments and using partnerships to extend mobile messaging to the fixed environment with converged messaging.

Other steps include subsidising mobile internet revenues through messaging integration with interactive web applications such as Facebook and eBay, mobilising enterprise applications and leveraging the mobile marketing opportunities, the firm said.

"SMS has achieved more than anyone imagined it would 15 years ago, but speculation that messaging has reached its peak ignores much of today's market dynamic," Acision CEO Rory Buckley said.

Peer-to-peer communication is showing no sign of stalling or declining, and already in South East Asia operators' efforts to differentiate their services by adding features such as out-of-office and blacklisting are proving popular with subscribers, he said.

However, it is with application-to-peer and peer-to-application messaging that the wider opportunities lie.