Revenue leakage from IP-based social messaging estimated at US$13.9 bil. in 2011

New estimates from Ovum indicate that consumers’ increasing use of IP-based social messaging services on their smartphones cost telecom operators US$8.7 billion in lost SMS revenues in 2010, and US$13.9 billion in 2011.

In a new report, the research firm reveals that it expects the decline, representing nearly six per cent of total messaging revenue in 2010 and nine per cent in 2011, to continue as the popularity of messaging apps continues to grow. Ovum warns operators to rework their legacy services if they want to secure their future position in the messaging market.

However, despite the threat to messaging revenues, Ovum believes that the strong presence of social messaging should be looked upon as an opportunity.