Mobile Messaging Markets.

Overview

- Expanded In-depth Forecast Suite
- Strategic Appraisal of Ecosystem
- Expert Analysis of Business Models

This strategic assessment of the key sectors within the mobile messaging market delivers a valuable appraisal of the opportunities for SMS, MMS, mobile IM and mobile email.  This second edition provides the most detailed view of the current and future mobile messaging market to date.

The extensive forecast model covers three in-depth chapters. SMS and MMS forecasts are broken down by P2P and A2P messages, and A2P messages in each case are broken down by standard and premium-rate billing.  Key metrics include the number of users, average usage, traffic, pricing and revenue.  For mobile IM, forecasts include the number of users of different business models, average usage, pricing or CPM, and revenue or adspend. The number of users of mobile email is also forecast.

The report explores a shift in monetisation of the messaging industry, presenting vital analysis of the strategic focus of operators and network hub providers as well as an examination of the various business models employed within the value chain.

Table of Contents

Executive Summary

1. Defining Mobile Messaging

1.1 Introduction    16
1.2 Market Overview    17
1.2.1 Defintion of Mobile Messaging    17
i. Delivery Mechanisms    17
ii. Sender/Recipient Relationships    18
1.3 Types of Messaging    19
1.3.1 SMS    19
i. Uses of SMS    19
a. Banking    19
b. Ticketing    20
Case Study: Swedish Rail SJ AB    20
c. Retail    20
ii. Adoption    21
1.3.2 MMS    23
1.3.3 MIM (Mobile Instant Messaging)    24
1.3.4 Email    26

2. Value Chain & Business Models

2.1 Value Chain    27
2.1.1 SMS/MMS    27
i. P2P    27
ii. A2P    28
2.1.2 Mobile Email    29
2.1.3 Mobile IM    29
2.2 Business Models    30
2.2.1 Operator Billing    30
i. Service Billing    30
a. Out-of-Bundle Message Pricing    30
b. Message Bundles    33
c. Messaging ARPU & Revenue    35
d. Message Bundles: A Warning to Operators    36
ii. Data Billing    38
2.2.2 Premium Billing    38
2.2.3 Subscription    40
i. Case Study: China Mobile    40
a. 139.com (Mobile Email)    40
b. Fetion (Mobile IM)    41
2.2.4 Advertising    41
i. SMS Advertising    41
ii. MMS Advertising    42
a. MMS Response Mechanisms    43
- Message-Based Responses    43
- Call Based Response    43
- WAP Landing Page Based Response    43
b. MMS Ad Campaigns    43
iii. Operators Move Towards Targeted, Opt-in Messaging    44
iv. Location-Based SMS/MMS Advertising    44
v. IM Advertising    44

3. Drivers of Mobile Messaging

3.1 Handset/Subscriber Growth    46
3.2 Increase in Mobile Internet Users    48
3.3 Handset Technology Developments    49
3.3.1 Keyboards    49
3.3.2 Camera    50
3.3.3 Screen Size    52
3.4 App Stores    53
3.4.1 Growth    53
3.4.2 Storefronts    54
i.  Apple’s App Store    54
ii. Google’s Android Market    55
3.4.3 Impact on Messaging    55
3.5 Social Networking    56

4. The Market for SMS

4.1 Methodology    59
4.2 Total Market for SMS    62
4.2.1 Handset Base    62
4.2.2 Proportion and Number of Handsets Using SMS    63
4.2.3 Usage and Traffic    64
4.3 A2P SMS    67
4.3.1 A2P SMS Traffic    67
4.3.2 Premium-Rate A2P SMS    68
i. Traffic    68
ii. Pricing    70
iii. Revenue    71
4.3.3 Standard-Rate A2P SMS    73
i. Traffic    73
ii. Pricing    74
iii. Revenue    75
4.3.4 Total Market for A2P SMS    76
4.4 P2P SMS    78
4.4.1 Total Traffic    78
4.4.2 Paid-For Traffic    80
4.4.3 Pricing    81
4.4.4 Revenue    82
4.5 A2P vs P2P    84
4.5.1 Traffic    84
4.5.2 Revenue    84

5. The Market for MMS

5.1 Methodology    87
5.2 Total Market for MMS    89
5.2.1 Proportion and Number of Users    89
5.2.2 Usage and Traffic    90
5.3 A2P MMS    93
5.3.1 A2P MMS Traffic    93
5.3.2 Premium-Rate A2P MMS    94
i. Proportion and Traffic    94
ii. Pricing and Revenue    96
5.3.3 Standard-Rate A2P MMS    98
i. Traffic    98
ii. Pricing and Revenue    99
5.3.4 Total Market for A2P MMS    101
5.4 P2P MMS    103
5.4.1 Total Traffic    103
5.4.2 Paid-For Traffic    104
5.4.3 Pricing & Revenue    106
5.5 A2P vs P2P MMS    108
5.5.1 Traffic    108
5.5.2 Revenue    109

6. The Market for Mobile IM and Mobile Email

6.1 Mobile IM    110
6.1.1 Methodology    110
6.1.2 The Market for Mobile IM    111
i. Total Market for Mobile IM    111
ii. Subscription Mobile IM Services    113
iii. Ad-Funded Mobile IM    117
a. Users    117
b. Usage    119
c. CPM & AdSpend    122
6.2 Mobile Email    123
6.2.1 Methodology    123
6.2.2 The Market for Mobile Email    124

7. Challenges for Mobile Messaging

7.1 Challenges    127
7.1.1 There is a perception of SMS & MMS as out-dated…    127
7.1.2 App stores are challenging SMS and MMS as a delivery mechanism for mobile content and applications…    128
7.1.3 MMS pricing is still too high in some markets…    129
7.1.4 Other services than MMS enable multi-user sharing, e.g. social networks    129
7.1.5 Social networking threatens SMS and MMS…    130
7.1.6 IM communities are fragmented…    131
7.1.7 IM apps are very hard on battery life…    132
7.1.8 IM can be considered intrusive in mobile setting…    132
7.1.9 Mobile email is utilised more by older age groups compared to messaging services…    132
7.1.10 SMS Advertising can be regarded as spam…    134
7.2 Emerging Messaging Technologies    134
7.2.1 XMS    135
7.2.2 RCS    135

8. Players within the Mobile Messaging Value Chain

8.1 Introduction    139
8.2 Selected MNOs    139
8.2.1 China Mobile    139
SMS    142
MMS    143
139.com (Mobile Email)    143
Fetion (Mobile IM)    143
8.2.2 Vodafone    143
8.3 Selected Service Providers    146
8.3.1 Acision    146
8.3.2 eBuddy    149
8.3.3 OpenMarket    152
8.3.4 mBlox    155
8.3.5 Nuance    158
8.3.6 Sybase 365    160
Case Study: France Telecom    161
Case Study: Orange    162
8.3.7 Syniverse    163
8.3.8 tyntec    164

Companies Referenced

3, Acision, AdMob, Apple, AT&T Mobility, Blackberry, Blyk, BMW, BuzzCity China Mobile, Clickatell, Cloudmark, eBuddy, Facebook, GetJar, Google, HTC, mBlox, Microsoft, Nokia, Nuance, O2, OpenMarket, Orange, Samsung, Smart Communications, Sony Ericsson, Standard Chartered Pakistan, Swedish Rail SJB AB, Sybase 365, Syniverse, T-Mobile, Telecom Italia, tyntec, Verizon Wireless, Vodafone, Yahoo!

Extra Info

‡ 8 key regions includes:

North America, Latin America, Western Europe, Central & Eastern Europe, Far East & China, Indian Subcontinent, Rest of Asia Pacific and Africa & Middle East.