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Messaging Apps, VoIP Already Eating Into Carrier Revenue

Posted by Soulskill on from the you're-gonna-get-net-neutralized dept.

An anonymous reader writes "A new breed of messaging services and mobile Voice over IP clients like Skype are already eating into carrier revenues according to a new study. '... one-third of carriers are already seeing voice traffic and SMS revenue decline as a result of the increased popularity of third-party solutions. ... For years, Research In Motion’s BlackBerry Messenger service has been one of the top features consumers and enterprise users loved about BlackBerry devices. It took much longer than some expected, but other vendors and third-party developers have finally come out in full force with competing services that provide SMS-like messaging over data networks at little or no cost to the user."

6 of 225 comments (clear)

  1. The funny part by 0123456 · · Score: 5, Insightful

    Is that the data messaging probably costs the carrier more than SMS...

    1. Re:The funny part by Captain+Splendid · · Score: 5, Insightful

      Won't somebody please think of the free market?

      Not gonna happen. Libs fear it, Conservatives abuse it, and the Corporations want to get rid of it.

      Best of luck.

      --
      Linux, you magnificent bastard, I read the fucking manual!
    2. Re:The funny part by TWX · · Score: 5, Insightful

      The Free Market is a myth and always has been. Like the Laffer Curve and the trickle-down theory of wealth distribution.

      --
      Do not look into laser with remaining eye.
    3. Re:The funny part by teg · · Score: 5, Insightful

      SMS is technically free. The only cost is counting/bill.

      Carriers don't charge SMS usage fees because of the big variable costs... they charge because they can, because it has a value to the customer.

      A large part of the cost for a carrier is fixed cost - the various priced services is just how to they believe they can recoup most of it and make their profit. If noone pays for SMS anymore, they'll instead have higher costs for talk or data than they do now. They know how much money they need to earn per handset on average, and that's what they'll get one way or the other.

  2. Prices go up, usage goes down? by jandrese · · Score: 5, Insightful

    So shortly after all of the major carriers dropped the even slightly reasonable SMS plans, people started using the hacky but free alternatives? What a shocker. This seems like a classic example of what happens when you price yourself right out of the market.

    --

    I read the internet for the articles.
  3. Re:iMessage by Nerdfest · · Score: 5, Insightful

    Proprietary solutions are not helping anybody but the people who create them, be it Apple or RIM.