Mobile Messaging Market Report 2011-2016

• Publication date: December 2011

How is Mobile Messaging Evolving? Mobile messaging is evolving due to the increasing use of mobile broadband by users to communicate with each other. The SMS and MMS platforms are facing intense competition from instant communication and email on many smart devices. The accessibility of 3G networks and the technical capabilities of smart devices are enabling ever-faster access to data. Visiongain expects global mobile IM users to ...

How is Mobile Messaging Evolving?

Mobile messaging is evolving due to the increasing use of mobile broadband by users to communicate with each other. The SMS and MMS platforms are facing intense competition from instant communication and email on many smart devices. The accessibility of 3G networks and the technical capabilities of smart devices are enabling ever-faster access to data. Visiongain expects global mobile IM users to grow from 311.2 million users in 2010, to over 1.6 billion by 2016.

The popularity of social networks is strongly influencing consumer behaviour and mobile service providers are countering by offering enhanced messaging applications. New messaging tools propose more intimate communication platforms, emulating a new class of social company, with mobility in mind from the start. Messaging applications based on location and group functions are gaining ground and users are beginning to expect mobile messaging platforms to be tailored to their particular needs. 

New Market Opportunities

In parallel to the development of high-end messaging platforms, traditional applications such as SMS and MMS are expanding their reach and being employed in new ways. SMS provides a simple and cost-effective alternative where mobile broadband is not available or the cost of smart devices is prohibitive. This has prompted a growth in mobile services which leverage the universal nature of SMS. 

Emerging markets especially are fostering strong markets in mobile payments and remittance services, which are opening up new revenue streams for operators. This is resulting in increased trust in messaging services and driving other industries such as mobile commerce, health and government. The Asia Pacific, African and Middle Eastern markets are showing particularly strong growth in value added services which leverage the mobile messaging platform. SMS traffic in those three regions accounts for almost 50% of total global SMS traffic in 2011. 

Remaining Competitive in a Changing Market

Visiongain estimates that increased subscriptions to data plans for mobile broadband and the extensive use of traditional messaging platforms in emerging markets will drive global mobile messaging revenues to reach $305.5 billion by 2016. New market opportunities are opening up the space for entrance by players who can offer original content and innovative services for mobile messaging. 

How can stakeholders remain competitive in a fast-changing market? Visiongain's mobile messaging market report investigates the value chain players, from infrastructure to service providers, including emerging trends and technologies supporting the industry. The report includes financial market forecasts and interviews with experts from Vodafone, Metahelix, Tekelec and Comverse. 

Who needs to read this report? 

• Mobile Operators - Understand how the market is likely to change over the next five years and identify strategies to ensure you can compete with other operators and in different markets.

• Content Publishers and Mobile App Developers - Discover opportunities that are available in the messaging sector, and identify new service offerings to grow your revenues.

• OEMs & Network Vendors - Gain in-depth market knowledge to develop and offer platform and technology solutions to the mobile messaging market.

• Service Providers - Learn ways to offer tailored services to operators and content providers, from back-end platform solutions to front-end customer service packages.

• Brands and Advertisers - Gain insights into the market trends and learn how you can ensure a good ROI from mobile messaging business models.

• Investment Companies - Increase your understanding of the mobile messaging segment and ensure you have the right strategies in place to benefit from the expected strong market growth in the coming years.

Visiongain is a trading partner with the US Federal Government
CCR Ref number: KD4R6 
 

Global Mobile Telephony Industry

Table of Contents

Executive Summary
E.1 A Broadening Scope for Mobile Messaging
E.2 New Opportunities for Revenue Growth
E.3 A Catalyst for Development
E.4 Driving the Market with Emerging Technologies

Introduction
1.1 Defining Mobile Messaging
1.1.1 Short Messaging Service
1.1.2 Multimedia Messaging Service
1.1.3 Mobile Instant Messaging
1.1.4 Mobile Email
1.2. Mobile Messaging Rises to New Uses
1.2.1 Group Chat
1.2.2 Randomised & Localised Discovery
1.2.3 SMS Replacements
1.2.4 Relays
1.3 Business Case for Mobile Messaging
1.4 Key Players & Stakeholders
1.5 The Aim & Scope of the Report
1.6 Questions Answered by the Report
1.7 Structure of the Report
1.8 Methodology

2. The Mobile Messaging Ecosystem
2.1 Mobile Messaging Value Chain
2.2 Mobile Messaging Infrastructure
2.3 Mobile Messaging Platforms
2.4 Mobile Messaging Service Providers
2.4.1 Back-end Vendors
2.4.2 OEMS
2.4.3 MNOs
2.4.4 OTT & Content Providers
2.4.5 Software Developers
2.5 Mobile Messaging Content Providers
2.6 Leveraging Mobile Messaging as Billing Business Models
2.6.1 Using Premium SMS/USSD Billing for Mobile Payments
2.6.2 Mobile Originated
2.6.3 Mobile Terminated
2.6.4 How Successful is Premium Rate Billing?
2.7 SMS and MMS Marketing
2.7.1 Short Codes
2.7.2 Pull & Push Messaging
2.7.3 An Uncontested Mobile Advertising Platform
2.7.4 Mobile Coupons
2.7.5 Location Based SMS/MMS Advertising
2.8 IP Based Messaging
2.8.1 Ping Messaging
2.8.2 Barriers to Growth
2.9 Converged IP Messaging
2.10 Rich Communication Suite
2.11 Message-oriented Cloud Middleware
2.11.1 Enterprise Messaging
2.11.2 Cloud Paths
2.11.3 Business Case for the Cloud
2.12 New Building Blocks for MNOs

3. Drivers and Challenges for Mobile Messaging
3.1 Mobile Subscriber & Handset Growth
3.1.1 Changing Consumer Habits
3.2 Smart Device Growth to Drive Mobile Broadband Use
3.3 A Market for Mobile Data Services
3.4 Mobile Messaging in Enterprise
3.4.1 How important is Mobile Email?
3.4.2 An Increasingly Pervasive Business Tool
3.4.3 Mobile Enterprise Messaging Solutions
3.5 App Stores as the New Service Delivery Mechanism
3.5.1 Growth of the App Market
3.5.2 App Markets
3.5.3 Impact on Messaging
3.6 Social Networks as the New Messaging Platform
3.6.1 Messaging at the Centre of Mobile Social Networks
3.6.1.1 eBuddy Case Study
3.6.1.2 MXit Case Study
3.6.2 Monetisation Opportunities for MNOs
3.7 Internal Barriers to IM Growth
3.7.1 Censorship & Surveillance
3.7.2 High SMS Pricing
3.7.3 International Data Roaming Fluctuations for MMS
3.7.4 The Drawbacks of Mobile Email
3.8 Monetising Messaging Services

4. Trends and Emerging Applications
4.1 Mobile Commerce, Payments and Banking
4.1.1 Visa
4.1.2 MOBIbucks
4.1.3 M-Payments in Kenya
4.1.3.1 M-PESA
4.1.3.2 M-KESHO
4.1.3.3 Orange Money
4.1.4 Continued Growth of Mobile Banking, Payments and Remittance in Developing Markets
4.2 Mobile Health
4.2.1 Leveraging Technology in the Health Sector
4.2.2 Sexual Health Campaigns
4.2.3 Smoking Cessation Programs
4.2.4 SMS as A Ubiquitous Tool for Cheaper Medicine in the Philippines
4.2.5 Telemedicine System Using MMS
4.2.6 Expert Interview: Vodafone
4.2.6.1 Brief Overview of the Mobile Relationship Manager for Vodafone mHealth Solutions
4.2.6.2 Implementation of Vodafone mHealth Solutions
4.2.6.3 The Role of Mobile Messaging for Health Services in Emerging Economies
4.2.6.4 The Evolution of Mobile Services in Telehealth
4.2.7 Expert Interview: Metahelix
4.2.7.1 Brief Overview of The M-DOK System
4.2.7.2 M-DOK in The Philippines
4.2.7.3 Mobile Messaging In Emerging Markets
4.2.7.4 Evolution of Telehealth in Mobile Health
4.3 Emergency Response
4.3.1 Text Messaging for Disaster Relief
4.3.1.1 Crisis Mapping
4.3.1.2 Humanitarian Relief
4.3.1.3 Changing User Behaviours
4.4 Government
4.4.1 M-government Value Chain
4.4.2 M-government Delivery Models
4.4.3 Education
4.4.4 Law Enforcement
4.4.5 M-Voting
4.5 The Future of Mobile Messaging and VAS

5. The Global and Regional Markets for Mobile Messaging
5.1 Mobile Revenue Shares by Type
5.2 Global Mobile Data Revenues
5.3 Global Mobile Messaging Market
5.4 The SMS Market
5.4.1 Global SMS Revenues
5.4.2 Regional SMS Revenues
5.4.3 Global SMS Traffic
5.4.4 Regional SMS Traffic
5.5 The MMS Market
5.5.1 Global MMS Revenues
5.5.2 Regional MMS Revenues
5.5.3 Global MMS Traffic
5.5.4 Regional MMS Traffic
5.6 The MIM Market
5.6.1 Global MIM Revenues
5.6.2 Global MIM Users
5.7 The Mobile Email Market
5.7.1 Global Mobile Email Revenues
5.7.2 Global Mobile Email Users

6. Selected Key Industry Players
6.1 Original Equipment Manufacturers
6.1.1 Research In Motion
6.1.2 Apple
6.2 OTT Service and Content Providers
6.2.1 Google
6.2.2 Facebook
6.3 Platform Providers
6.3.1 Synchronica
6.3.2 Sybase & SAP
6.4 Infrastructure Providers
6.4.1 Acision
6.4.2 Expert Interview: Tekelec
6.4.2.1 Factors Driving the Market
6.4.2.2 The Impact of IP Convergence
6.4.2.3 The Role of Mobile Services
6.4.2.4 The Role of Messaging in Mobile Services
6.4.2.5 The Future of Mobile Messaging
6.4.2.6 Tekelec Service & Product Overview
6.4.3 Expert Interview: Comverse
6.4.3.1 Factors Driving the Market
6.4.3.2 The Impact of IP Convergence
6.4.3.3 The Role of Mobile Services
6.4.3.4 The Role of Messaging in Emerging Economies
6.4.3.5 The Role of Messaging in Emergency Relief and Telehealth
6.4.4.6 The Future of Mobile Messaging
6.4.4.7 Comverse Service and Product Overview
6.5 Niche Mobile Messaging Providers
6.5.1 Whats App
6.5.2 GroupMe
6.5.3 Hurricane Party
6.5.4 Burst SMS
6.5.5 Global Relay

7. Conclusion
7.1 Revaluating SMS
7.2 The Rising MIM Platform
7.3 MIM Leads the Way: From Social to Business
7.4 Leveraging Value Added Services
7.5 Advancing Mobile Governance
7.6 Security Remains a Critical Element
7.7 SWOT Analysis
7.8 Key Findings

8. Glossary
Appendix A - About Visiongain
Appendix B- Visiongain report evaluation form

List of Charts

Chart 2.1 Global Mobile Advertising Market Share & Revenues by Type 2011
Chart 2.2 US Consumer Mobile Coupon Spending 2011 - 2016
Chart 2.3 Global Location Based Advertising Revenues 2011 - 2016
Chart 3.1 Global Mobile Subscribers 2010 - 2016
Chart 3.2 Global Handset Shipments 2010 - 2016
Chart 3.3 Global Smartphone, PC & Tablet Shipments 2011- 2016
Chart 3.4 Mobile Penetration and Internet Access Worldwide and by Market 2010
Chart 3.5 Global Mobile Broadband Subscriber Growth 2011 - 2016
Chart 3.6 Top Drivers of Future Phone Choice 2011
Chart 3.7 Global Mobile vs. Total Workforce Forecast 2011 - 2016
Chart 3.8 Types of Mobile Devices Supported Within Organisations
Chart 3.9 Global Mobile Apps Downloaded 2011 - 2016
Chart 3.10 Global Market Share of Mobile App Stores 2011 - 2016
Chart 3.11 Growth of Mobile Social Networking vs. Other Mobile Segments Q1-Q2 2011
Chart 3.12 Growth of Mobile Social Networking User Numbers 2011-2016
Chart 3.13 Roaming price of 100 KB picture MMS sent - average price by country of origin of the traveller - USD PPP (2011)
Chart 3.14 Email Viewing by Platform 2011
Chart 5.1 Global Mobile Revenues 2010 - 2016
Chart 5.2 Global Mobile Revenue Share by Type 2011 %
Chart 5.3 Global Mobile Revenue Share by Type 2011 USD
Chart 5.4 Global Mobile Data Revenues 2010 - 2016
Chart 5.5 Global Messaging Revenues 2010 - 2016
Chart 5.6 Share of Global Messaging Revenues by Type 2010 & 2016
Chart 5.7 Global SMS Revenues 2010 - 2016
Chart 5.8 SMS Revenues by Region 2010 - 2016
Chart 5.9 Global SMS Traffic 2010 - 2016
Chart 5.10 SMS Traffic by Region 2010 - 2016
Chart 5.11 Global MMS Revenues 2010 - 2016
Chart 5.12 MMS Revenues by Region 2010 - 2016
Chart 5.13 Global MMS Traffic 2010 - 2016
Chart 5.14 MMS Traffic by Region 2010 - 2016
Chart 5.15 Global Mobile IM Revenues 2010 - 2016
Chart 5.16 Global Mobile IM Users 2010 - 2016
Chart 5.17 Global Mobile Email Revenues 2010 - 2016
Chart 5.18 Global Mobile Email Users 2010 - 2016
Chart 6.1 RIM Revenues 2005 - 2013
Chart 6.2 Apple Revenues 2005 - 2013
Chart 6.3 Google Revenues 2005 - 2013
Chart 6.4 Estimated Facebook Revenues 2006 - 2013
Chart 6.5 Synchronica Revenues 2005 - 2013
Chart 6.6 Sybase & SAP Revenues 2005 - 2013
Chart 6.7 Tekelec Revenues 2005 - 2013
Chart 6.8 Comverse Revenues 2005 - 2013
Chart 6.9 GroupMe Text Messages per Day

List of Tables

Table 1.1 Categorisation of Mobile Messaging
Table 1.2 Mobile User Agents
Table 1.3 Mobile Group Chat Examples
Table 1.4 Mobile Randomised & Localised Discovery
Table 1.5 SMS Replacement
Table 1.6 Mobile Messaging Relays
Table 1.7 Key Players & Stakeholders in the Mobile Messaging Industry
Table 2.1 Selected Mobile Messaging Infrastructure Vendors
Table 2.2 Selected Mobile Messaging Platform Vendors
Table 2.3 SMS & MMS Advertising Units
Table 2.4 Benefits of RCS/RCS-e
Table 3.1 Global Handset Shipments CAGR 2011 - 2016
Table 3.2 Key Findings of the iPass Mobile Workforce Survey April 2011
Table 3.3 Popular MIM Apps by Platform Q4 2011
Table 3.4 Growth of Mobile Social Networking vs. Other Mobile Segments Q1-Q2 2011
Table 4.1 SMS Banking Push & Pull Services
Case Study 1: SMS For Health Supply Chain Management And Disease Tracking
Case Study 2: SMS for Life Managing The Malaria Medicine Supply Chain
Table 4.2 Selected M-government Projects in Africa & Asia
Table 5.1 Global Messaging Revenues CAGR 2010 - 2016
Table 5.2 SMS Revenues CAGR by Region 2010 - 2016
Table 5.3 SMS Traffic CAGR by Region 2010 - 2016
Table 5.4 MMS Revenues CAGR by Region 2010 - 2016
Table 5.5 MMS Traffic CAGR by Region 2010 - 2016
Table 7.1 SMS SWOT Analysis
Table 7.2 MMS SWOT Analysis
Table 7.3 MIM SWOT Analysis
Table 7.4 Mobile Email SWOT Analysis

List of Figures
Figure 1.1 Mechanism for SMS Delivery on the Same Network
Figure 1.2 Mechanism for SMS Delivery on a Different Network
Figure 1.3 MMSC Reference Architecture
Figure 2.1 Mobile Messaging Value Chain
Figure 2.2 SMSC/MMSC Vendor Considerations
Figure 2.3 Mobile Messaging Platforms
Figure 2.4 Mobile Coupons
Figure 2.5 Location Based Advertising
Figure 2.6 Fundamentals for MNO Revenue Growth
Figure 4.1 Mobile Commerce Solutions Using Messaging Applications
Figure 4.2 Overview of the M-PESA Service
Figure 4.3 Filipino Telemedicine System Mechanism for Drug Database
Figure 4.4 Vodafone mHealth Solution - Mobile Relationship Manager
Figure 4.5 mGive Survey on Mobile Donations
Figure 4.6 M-government Value Chain
Figure 4.7 M-government Delivery Models
Figure 6.1 Comverse VAS 3.0 IP Messaging and Service Enablement Middleware
Figure 6.2 Whats App Mobile Screenshot
Figure 6.3 GroupMe Mobile Screenshot
Figure 6.4 Hurricane Party Mobile Screenshot
Figure 6.5 Burst SMS Web Screenshot
Figure 6.6 Global Relay Messaging Platform
Figure 7.1 Mobile Messaging Applications 

Companies Listed

Acision
AdMob
Airtel Money
Airwide Solutions / Mavenir Systems
Alcatel 
Amaze Mobile Media
Anam Mobile
Apple
AT&T Mobility
BeeJiveIM
BlackBerry
Blyk
Brightkite
BuddyWise
Burst SMS
BuzzCity
ChompSMS
Clickatell
Comverse 
Comviva
Convore
Critical Path
Deutsche Telekom
eBuddy
EMT
Ericsson
Eskadenia Software
Evistel 
Facebook
Fast Society
Foursquare
Global Relay
Go SMS
Google
GroupMe
Handcent SMS
HeyWire
Homisco 
HTC
Huawei 
Hungama Mobile
Hurricane Party
IM+
IMO
Incentivated
Info2mobi
Interop Technologies
Jinny Software 
Jubaloo 
Kik
LDMobile
Lets Lunch
LinkedIn
Linxter
LiverProfile
Mango Mobile
Marketron
mBlox
MediaBurst
Meebo
Meffy
MessageParty
Metahelix
mGive
Microsoft
M-KESHO
MOBIbucks
Mobikash African
Mobile Giving Foundation
Mobisolv
Movistar
M-PESA
MXit
NewNet Communication Technologies
Nimbuzz
Nokia
Nokia Siemens Network 
Nordic Messaging 
O2
Open Market
Openmind Networks 
Openwave 
Orange
Palringo
PingChat
Plastic Mobile
RIM
Ruxter
Safaricom
Samsung
Sitter Pals
Skzpe
SMS Global
SMSJock
Soprano
Sponge
Stop N Text
Sybase
Symsoft
Synchronica
Tango 
Tekelec
Telcel
Telecom Italia
TeleCommunication Systems
Telefonica 
Telenity 
TeliaSonera
Text2Teach
TextMarketer
textPlus
TextSlide
TIM
Twitter
Txtlocal
txtNation
tyntec
Ushahidi
VeriSign
Verizon
Vibes Media
Visa
Vodafone
Wavelength
WhatsApp
Yahoo
Yobongo
yuCash
Zapme
ZTE