SMS revenues to reach $177bn by 2013

Regional differences will determine the success of messaging expansion into the web

SMS will continue to maintain its lead as the highest revenue generator across all messaging categories, providing global service revenues of $177bn by 2013.

However, analyst ABI Research said that regional differences will determine the success of messaging expansion into the web, advertising and the incorporation of mobile messaging within social networking media.

"Innovative companies are exploring opportunities for expanding mobile messaging access to websites as well as targeting customers with content and ads," said principal analyst Dan Shey.

"To be successful with these enhanced services, companies that supply mobile messaging products and services must understand the regional distributions for customer type, payment preferences, message delivery method and usage."

For instance, developed regions of North America and Europe have the highest messaging revenues per user, and send the most messages from the computer to the mobile device using IM.

Asia-Pacific subscribers sign up for the most SMS alert services, while Latin Americans are heavy SMS users but prefer pay-as-you-go for all messaging services.

These regional differences will also force established messaging suppliers to re-evaluate business models.

"Device vendors and messaging platform suppliers serving the global market will have to manage across markets where growth is king, and other markets where product differentiation is king," said Shey.

"This is a great time for smaller companies to develop new products and services individually and in partnerships to serve the niche needs of a region or country."