Alternatives to SMS services cause financial dent to networks

Everyone jumps at the opportunity of not paying for something, even the smallest things. Text messaging is now included in that list. Apple’s iMessage, BlackBerry’s BBM and Facebook’s Messenger are all free messaging services and they are all very good. People use them as free alternatives to texting and they seem to becoming very popular, but too popular for the networks.

In 2011, mobile networks such as 3, O2, Orange, Vodafone and T-Mobile lost over $13.9bn (£8.8bn) because of these new free massaging apps. With so many alternatives to SMS services available, people are not texting as much as they used to and are instead looking to free apps. Network providers are missing out on their usually vast amounts of money they receive from people who pay for large SMS plans.

Network providers are desperately looking for ways to win back the public into SMS. In the short term, I expect, they will be looking to lower the prices of SMS services and crack down on data usage. Let’s see what 2012 brings…

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