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SMS Revenues to Reach $50 billion

A new report from Portio Research predicts a strong future for SMS, and that it will remain the most widely used messaging format for some years to come. SMS revenues are estimated at $50 billion by 2010 driven by almost 2.38 trillion messages. The report also highlights the slow but steady progress of other mobile messaging technologies, especially mobile e-mail and instant messaging. Since its launch in 2002, MMS has failed to assume the SMS mantle, hampered by interoperability issues and low handset penetration, says Portio. MMS can however be considered a commercial success with similar revenue predictions as SMS by 2010 from considerably less traffic. The report suggests that: "the industry must concentrate on increasing the use of Premium MMS as a marketing tool and a distribution channel while promoting growth of cheap peer-to-peer picture messaging. When MMS becomes cheap, simple and compelling, traffic will grow and revenue will follow".

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