For several years, mobile operators in mature markets have had to deal with a heavy deceleration in their voice revenue growth. They have satisfied that objective, in part, by setting targets for growth in the percentage of their revenues that come from data services. However, ‘data’ is a widely encompassing term. In the consumer market it includes such diverse services as downloading games, accessing traffic reports and watching TV. There is, however, a clear distinction between data services that are basically about content and those that are basically about communications: in other words, messaging.

Mobile operators are moving to build up their content revenues, but the process is a very challenging one. It requires them, in effect, to become media companies, and to build the organisational structures, business relationships and marketing strategies that the media business demands. By contrast, messaging is an easier line of business for operators to develop, because they are already communications companies. Messaging demands some adaptation of an operator’s traditional business, but it does not require them to enter an entirely new business.

This report provides an overview of the mobile messaging market, and examines the current status and prospects for MMS, mobile email and mobile instant messaging.

Table of contents

Key messages

Mobile messaging: old generation matures; new generation still in the nursery

Vendors are pushing back the boundaries of messaging
Messaging ‘applications’: what do users actually do?
With all this technology choice, why does SMS still dominate?
The state of play: MMS

The upshot
Critical mass is a prerequisite for high traffic volumes
Many more obstacles in the road for MMS
MMS’s early woes have had a lasting effect
The state of play: mobile instant messaging

The upshot
Mobile IM has been held back...
...but now the grip is loosening
Mobile IM: not one service, but two
Mobile operators’ IM services
The prospects for mobile IM
The state of play: mobile email

The upshot
Consumer demand for mobile email
Options for implementing mobile email
The prospects for consumer mobile email
Development of the mobile messaging market

Development of SMS
Development of MMS
Mobile instant messaging
Mobile email