Tuesday, January 17, 2017

3 ways how mobile sms are being challenged by OOT messaging


This development might not be very pleasing to the SMS / mobile text messaging players, however the 'change is already starting to take place' as more and more users move to OOT ( over the top messaging instead of sending a sms or  texting .

As a result of the increased penetration of smartphones and OS application ecosystems in developed markets, "over-the-top" (OTT) mobile messaging applications now constitute a significant threat to telecommunications carriers' SMS-messaging revenues. Some  mature markets, such as South Korea and the Netherlands, have already “tipped” – that is, OTT messaging has reached such a high level that it is causing a material threat to SMS volumes and revenues.Compared to text messages, messaging apps are getting more traction. There are many reasons for the same. Messaging apps provide a free alternative to text messages. Most apps work on Wi-Fi. Sending a message through an app doesn’t cost anything extra. It is all covered in the data plan.

The top four messaging apps led by WhatsApp, Facebook messenger, Qmobile and Wechat presently make up 2.125 billion users, which is approximately   is equal to the total combined users of world's  top four social networks

The below research data was published by  McKinsey & Company  which conducted global countrywide assessment on the relative risk of mobile  messaging markets “tipping” due to OTT messaging and how traditional messaging is set to get distruptive due to the increase proliferation of OTT . It compares  and  combines lessons from South Korea and the Netherlands with a diverse set of data on the state of mobile messaging across  each nation.



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