Telecom Companies to Lose Big Time Due to Messaging Apps
Tuesday, 16 October 2012, 23:58 IST
Bangalore: The growing popularity of messaging apps and services has pushed the telecom industry on the back-foot.
Smartphones have gained immense market share in a very short span of time and this has invariably impacted the app market positively. The free messaging apps are expected to nail a loss of $23 billion to the telecom companies.
The loss has been perennial with telecom companies registering an annual loss of $13 billion last year and nearly $8.7 billion the year before. Over the years there has been tremendous improvement in these messaging apps and that has severely impacted the revenues of telecom companies.
The dark future of SMS:
After the Supreme Court cancelled licenses of several telecom companies, they are forced to reinvest to procure licenses and this is a costly affair. In addition to that, these apps use 3G or other forms of mobile internet which is still finding its place in the country.
For much of its relief, a majority of telecom users in India are still using basic phones that do not support such apps. Thus, SMS can still breathe a little easy in India unlike in rest of the world where it is becoming extinct.
Telecom companies have understood the inevitable fall of the SMS and thus are looking into ways to make up to the loss. One of the most common ways being adopted is taking help of reality shows that call for votes through SMS. Even social networking websites such as Facebook and Twitter are urging for mobile updates that use SMS.