OVUM has released a report on the various means by which operators can counteract the social messaging threat from over-the-top (OTT) players, say news reports.
As per the findings of the report, operators will lose $54 billion in revenues generated by SMS services by 2016. The research firm attributes this to the rapid adoption of social messaging services on smartphones. This is more than double the $23 billion they are expected to have lost by end-2012.
Further, Ovum opines that collaboration with handset manufacturers is imperative for operators, if they are to remain relevant and competitive in the messaging industry.
The report also highlights the rapid increase in the number of OTT players, and demonstrates that social messaging is not a short-term trend, but a shift in communication patterns.
Ovum believes that operators in Europe and Asia-Pacific will be affected the most, and should be vigilant with respect to OTT messaging activity.
The report cites the example of WhatsApp, one of the more prominent social messaging brands. Its levels of penetration has increased manifold in markets such as Singapore and the Netherlands. Ovum believes this level of growth will continue as smartphone and mobile broadband penetration increases, and expects smaller players such as textPlus, Pinterest, and fring to cause further disruption in the messaging space.
According to Ovum, the importance of industry-wide collaboration cannot be underestimated as operators look to a Rich Communication Suite (RCS) platform to provide consumers with features such as file sharing, video calls, and IP-based messaging. However, RCS is not expected to reach the mass market before 2014, so for the time being operators will have to rely on innovative pricing strategies, partnerships, and launching operator-branded IP messaging services to keep up with the changing demand.
