Sunday, May 20, 2012

Facebook cutting operator SMS revenues

Facebook cutting operator SMS revenues


20 May 2012 - Income gotten from SMS services is on the decline for carriers internationally, and why that is happening is still a debatable topic. Services like WhatsApp, Blackberry Messenger and Apple’s iMessage are believed to have had a big effect on the reduction of profit from SMS services, and it’s not only them. Facebook has also been considered as another cause.

Market research firm Strand Consult has written a report, citing that most operators charge customers per SMS, and customers would rather send a message on Facebook – if they’re on Facebook – due to flat rate data charges. Facebook now has more than 900 million users, with 425 million users on mobile.

The company has said that even companies like Google, Skype, Twitter and MSN is only marginally important compared to Facebook. The biggest difference between Google and Facebook, according to Strand Consult, is that Facebook is used to keep in contact with friends and family everyday.

The firm has also noted that Facebook’s messaging service has less impact in markets such as the US and Denmark as operators have flat rate message bundles instead of per-SMS.

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