SMS dominates non-voice mobile profits

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SMS dominates non-voice mobile profits

Text messaging will continue as cash cow until 2011, say analysts.

Three-quarters of all non-voice mobile revenue in Europe over the next five years will come from text messaging, despite major growth in premium services, according to a new report.

Analyst firm Jupiter Research predicted a €5.8bn increase in non-voice services revenue, bringing the total to €27.7bn by 2011. 

Most of this increase will come from content and services, such as games and video, which will jump from €2.2bn to €7.9bn.

Text messaging, however, will remain steady and continue to comprise the vast majority of non-voice mobile revenue, going from €19.7bn to €19.8bn in the five-year period.

Jupiter Research said that the continued success of SMS is due in part to slow adoption of other services.

The firm predicts that, although premium services such as video and games will continue to grow over the next five years, fewer than 50 per cent of mobile users will show any interest.

"Entertainment will strongly differ on the third [mobile] screen and remains to be invented," said Jupiter Research mobile analyst Thomas Husson.

Operators will need to find better ways of presenting and sharing information if mobile services are to take user time and attention away from voice and text, the analyst said.

1.00 Euro = 1.68 AUD

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