Bonanza ahead for wireless IM

The global messaging market continues to be important to mobile carriers, with the bulk of the revenues coming from text messaging, newly published research has found.

According to In-Stat, the greatest growth in mobile messaging is expected to come from wireless instant messaging, which is expected to increase revenues sixfold between 2007 and 2009 driven by corporate users, the high-tech market research firm said.

"Revenue from SMS is levelling off and will decline in the future due to less price elasticity resulting from mature competition in developed regions," said In-Stat analyst David Chamberlain. "Margins, however, remain good for most carriers due to the inherent profitability of SMS."

The In-Stat report also found that Multimedia Message Service, which delivers pictures, sound clips and video, is expected to show nearly 50 per cent compound annual growth rate through 2009.

The major barrier to widespread consumer adoption of wireless instant messaging will be the development of industry standards, the analyst firm predicts.

The study also noted that Enhanced Message Service has "virtually disappeared" as a viable technology.