Skip to main content

How Mobile Messaging will be Disrupted by New Apps

Mobile network service provider revenue streams continue to be disrupted by alternative providers. As an example, the messaging market is forecast to decline from $113.5 billion in 2014 to $112.9 billion in 2019 – that's a reduction of $600 million, according to the latest market study by Juniper Research.

Ironically, messaging traffic is forecast to double by 2019. This is driven by over-the-top (OTT) messaging software applications -- such as WhatsApp and LINE -- seeing a threefold increase in message traffic from almost 31 trillion in 2014, to 100 trillion by 2019 globally.

Importantly, the revenue generated from each OTT message is forecast be less than 1 percent of that from mobile service provider SMS and MMS in 2019.

Juniper's latest study found that OTT messaging services are facing a struggle to monetize their freemium services. Combined with users switching from SMS and MMS services, this will contribute to a contraction in the overall revenue pot.


OTTs have not yet succeeded in using advertising at scale to monetize their services, due to a limited acceptance by consumers, particularly in Asian markets. In these markets, messaging services have relied upon in-app purchases such as sticker sets to generate income.

According to the Juniper assessment, OTT players are now seeing further diversification with a foray by several big players into the payments market -- for example, LINE Pay, the Facebook use of Messenger to send payments, and Snapcash from Snapchat.

Traditional messaging services from mobile network operators have been under threat from OTT offerings for some time. So far, they have been unable to compete with free messaging apps.

However, in terms of revenues, SMS still continues to dominate the market, with mobile network operators benefiting from growth in the A2P (application to person) sector.

That said, new alternative messaging services could easily launch and innovate at a faster rate and further disrupt the legacy providers. Network operators have already lost too much ground to recover from this established trend.

Other key findings from the study include:

  • A2P SMS will generate significant growth over the next five years, as enterprise messaging sees considerable uptake in the form of two-step verification, and notification services.
  • User concerns regarding privacy will aid A2P SMS growth - with secure message delivery and reliability being key.

Popular posts from this blog

Big Data Analytics Revenue to Reach $215.7 Billion

Across the globe, more leaders seek actionable insight from the customer data they've stored in huge data lakes. Worldwide spending on big data and business analytics (BDA) solutions is forecast to reach $215.7 billion in 2021 -- that's an increase of 10.1 percent over 2020, according to the latest worldwide market study by International Data Corporation (IDC). Moreover, BDA technology investment will likely gain momentum over the next five years as the global economy recovers from the COVID-19 pandemic. The compound annual growth rate (CAGR) for global BDA spending over the 2021-2025 forecast period will be 12.8 percent. Big Data Analytics Market Development "As executives seek solutions to enable better, faster decisions, we're seeing relatively healthy BDA spending across all industries. Leveraging data for insights into everything from internal business operations to the customer journey is top of mind and of strategic importance," said Jessica Goepfert, vice

Why Cloud Fuels Net-New Digital Business Growth

CEOs and Line of Business (LoB) leaders seek the fastest path to meaningful digital transformation advancement. Meanwhile, investment trends in cloud computing infrastructure continue to expand the capabilities, accelerating growth across all segments within the public cloud services market. According to the latest worldwide market study by Gartner, the four key trends are cloud ubiquity, regional cloud ecosystems, sustainability or carbon-intelligent cloud, and automated programmable cloud infrastructure. "The economic, organizational and societal impact of the pandemic will continue to serve as a catalyst for digital innovation and adoption of cloud services," said Henrique Cecci, senior research director at Gartner . "This is especially true for use cases such as collaboration, remote work, and new digital services to support a hybrid workforce." Global Cloud Computing Market Development Hybrid, multi-cloud and edge computing environments are growing and setting

Software-Defined Infrastructure: The Platform of Choice

As more organizations adapt to a hybrid working model for their distributed workforce, enterprise CIOs and CTOs are tasked with delivering new productivity-enabling applications, while also seeking ways to effectively reduce IT cost, complexity, and risk. Traditional IT hardware infrastructure is evolving to more software-based solutions. The worldwide software-defined infrastructure (SDI) combined software market reached $12.17 billion during 2020 -- that's an increase of 5 percent over 2019, according to the latest market study by International Data Corporation (IDC). The market grew faster than other core IT technologies. The three technology pillars within the SDI market are: software-defined compute (53 percent of market value), software-defined storage controller (36 percent), and software-defined networking (11 percent). "Software-defined infrastructure solutions have long been popular for companies looking to eliminate cost, complexity, and risk within their data cente