Analyst: SMS profits unsustainable as IP messaging gains ground

SMS has generated extraordinary profits for many years, but is now being challenged more than ever by a range of IP-based messaging alternatives, according a new study from Analysys Mason. The research claims the pricing of IP messaging using cross-platform apps or platform-specific services such as Apple's iMessage is clearly more attractive in comparison with operator-provided SMS. The firm notees that the greatest impact of IP messaging has been in countries where the SMS market is weak, with over 60 per cent of smartphone owners in Spain using alternatives as measured in October 2012. The study also believes IP messaging penetration in the Netherlands is at a similar level. Article

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