WASHINGTON-Wireless messaging revenue in the United States more than doubled last year from 2003 and is expected to grow strongly during the next five years, according to figures from research from Analysys Research.
Wireless data accounted for less than 5 percent of U.S. operators’ total mobile services revenue in 2004, compared with 16 percent for carriers in Western Europe and 22 percent for those in Japan, the company reported. Relatively low usage by U.S. subscribers of texting and other messaging is cited as a key factor in the disparity.
But uptake will increase as carriers address messaging issues, Analysys claims. By 2008, wireless messaging alone is expected to account for 10 percent of operators’ total mobile services revenue, generating $16.4 billion annually.
“For a flat monthly fee, a subscriber can now sign up for a messaging bundle and send any combination of text, instant, picture and video messages,” said Alex Zadvorny, author of the report. “Such bundles have the potential to significantly increase usage and revenue from messaging, and could be implemented by operators in other markets.”