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BizReport : Mobile Marketing : January 30, 2009

In-Stat: Text messaging cash cow for mobile operators

Text messaging is cheap, reliable and easy for users to get to grips with, which is why, today, users are sending more than 2 trillion messages a day, found recent research from In-Stat.

by Helen Leggatt

in stat logo.jpgNew research from In-Stat has found that text messaging remains the most profitable data service in the U.S., despite efforts to boost the average revenue per user by introducing value added services.

"SMS may be a basic, cheap technology, but it still has much life as a MNO cash cow," said Frank Dickson, In-Stat analyst.

"The keys to SMS profitability are its ease-of-use, inexpensive price tag, global reach, and increased reliability as infrastructure development increases in more rural global regions. In developed areas, however, it has become increasingly important for mobile operators to find ways to enhance and personalize the SMS service offering."

In-Stat's research, 'Worldwide Mobile Application Series: Mobile Messaging Still Profitable', found that mobile messengers are also more likely to pay up to 25% more for their handsets than all survey respondents.

Recent research has found that mobile phone users aren't yet comfortable or savvy enough to fully embrace more advanced features. Consequently, users aren't using devices to their maximum potential.

Tags: In-Stat, mobile operator, mobile phone, revenue, text messaging

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