Facebook is Reducing SMS Revenues

by Harry Wang | May. 15, 2012

Global carrier revenue from SMS air force is decling, and the cause of the slide is a theme of much debate. Movable messaging air force such as WhatsApp, BlackBerry Messenger and Apple’s iMessage are widely believed to have had a tremendous impact on wireless service providers’ messaging revenues, but another company has now been identified as potentially sharing the responsibility for carriers’ dwindling SMS sales.Facebook Logo

Another method of communication is through Facebook. If a customer has the choice between sending an SMS that costs money or sending a message over Facebook at no cost, that will reduce the use of SMS. Facebook is now home to more than 900 million users, 425 million of which use the service from their mobile phones.

The impact of Facebook’s messaging air force on carriers’ SMS revenues is less significant in markets like the United States and Denmark, where carriers charge flat monthly fees for message bundles as opposed to per-message fees.



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