Mobile Message Spending > $88 Billion by 2012, Says Strategy Analytics

By Editor Wireless and Mobile News on August 12, 2008 2:07 PM

Total spending on mobile messaging services by consumers will rise 15% from $65 billion in 2007 to over $88 billion by 2012, according to a new Strategy Analytics report, "Global Mobile Messaging Forecast 2007 - 2012." Although SMS will continue to contribute to the vast share of consumer messaging spend, the availability of low-cost flat-rate data plans will enable rapid growth in usage of traditional PC based messaging services, such as email and instant messaging via mobile. By 2012 mobile email will account for 20% of total end user mobile messaging spending.

Senior Analyst Nitesh Patel noted, "Mobile messaging, which includes SMS, MMS, mobile email and instant messaging, will account for over 40% of the total consumer spend on mobile media and messaging services in 2012. We anticipate growing adoption of consumer email access via mobile, as flat-rate pricing, combined with improving email provisioning and device user experience lower the existing barriers to adoption and usage of this popular PC messaging format."

David Kerr, VP Global Wireless Practice, adds, "SMS use has exploded over the last 3 years in the US, while Western European SMS revenues are beginning to plateau due to price erosion, despite continuing increases in overall traffic. In North America, we expect healthy growth over the next five years with the region contributing to 25% of total end-user spend on mobile messaging by 2012."