DISQUS

Paul Walsh · 1 year ago

It is mad. But, IM has been available on at least two operators handsets since around 2003. IM on small screens just doesn't appear to have the same appeal as SMS. Perhaps, with IM you're assuming that a conversation is about to take place and you don't want to pursue it on the basis that a phone call makes more sense. SMSs conversations just seem to happen. I'm familar with the IM space having helped to launch AIM during the mid 90's and then Segala did all the testing for O2's IM client which never took off.

SMS has been a major revenue generator for a long time and will continue to be so, for another while. Data is the obvious way forward, but it's not going to bypass SMS for a few years to come in my opinion. Unlimited data needs to happen in order to gain mass adoption, so by then, operators will need to think of other revenue streams - such as a form of advertising - referrals/recommendations/advertorials...

jamescoops · 1 year ago

Push email (as on Blackberry) has got to be a bigger threat than IM? IMO the network effects of SMS are too strong for it to be overtaken quickly - everyone has SMS on their phone whereas it will only ever be some people that have an IM client etc.

SMS is starting to get hit in certain segments though e.g. business people (who all have blackberries and can use push email), youth (in South Africa they all use the Mxit mobile IM client rather than SMS).

However, we have already seen the commoditisation of SMS to some extent with the massive inclusive bundles contract users get.