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Phone Chat IM Services Finally Overtake SMS
19 Billion Chat Messages to 17.6 Billion SMS Messages in 2012
by Karl Bode 10:12AM Monday Apr 29 2013
The writing has been on the wall for SMS for some time. The cash cow service that costs carriers nothing to provide yet billions in revenue is inevitably going to be replaced by smartphone push IM services. That transition has been a surprisingly slow one (especially in the States), where carriers are slated to continue making a killing on the services until 2015. However, in a landmark moment this week Informa noted that IM services surpassed SMS in total volume in 2012:
quote:
Informa said almost 19 billion messages were sent per day on chat apps in 2012, compared with 17.6 billion SMS texts...Pamela Clark-Dickson of Informa said some operators were already "seeing a decline in their messaging revenues". According to separate estimates by research firm Ovum, more than $23bn (£15bn) of SMS revenue was lost in 2012 due to popularity of chat apps.
The firm notes however that SMS has a long life still ahead of it courtesy of billions of people on feature phones with no data plans that rely on SMS daily. Carriers get their pound of flesh either way; most U.S. carriers are now shifting to shared data plans where they offer unlimited voice and SMS services, but jack up the cost of data substantially.

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gigahurtz
Premium
join:2001-10-20
Palm Coast, FL
Reviews:
·Bright House

This is good news, but...

if providers aren't offering smaller SMS packages for those few messages you may send to someone who doesn't have access to these services you are stuck. AT&T also added unlimited mobile to any mobile with their unlimited texting. I wish I could drop it all together since most people I speak to have iMessage.

trparky
Apple... YUM
Premium,MVM
join:2000-05-24
Cleveland, OH
kudos:2

Re: This is good news, but...

I have that same plan, the Unlimited Text for the family with Unlimited Mobile to Any Mobile add-on. Since most people have cell phones these days and the chances of calling someone who has a cell phone is going up, soon cell phone minutes and counting your minutes will be a thing of the past.

Where are these carriers going to get their money? I figure they will sooner or later jack the prices up on data since eventually everything will be data. Voice encoded as data, text encoded as data, everything encoded as data.
--
Tom
Boycott AT&T uVerse! | Tom's Android Blog

hey hey hey

@charter.com

Re: This is good news, but...

said by trparky:

Where are these carriers going to get their money? I figure they will sooner or later jack the prices up on data since eventually everything will be data. Voice encoded as data, text encoded as data, everything encoded as data.

Everything is data now. It's just not counted as such and really doesn't make sense today. Even with VoLTE it would take at least 6000 minutes to use just 1 GB of data. It would take nearly 7 million text messages at 160 characters to equal 1 GB of data. So I don't see converting everything to data for the purposes of billing is going to increase much of anything.

djrobx
Premium
join:2000-05-31
Valencia, CA
kudos:2
Reviews:
·Time Warner Cable
·VOIPO
This is why you don't see limited text plans anymore. I love my grandfathered $5/month 200-text plan. It's just enough to cover the non-iMessage people that I talk to.
--
AT&T U-Hearse - RIP Unlimited Internet 1995-2011
Rethink Billable.

FFH
Premium
join:2002-03-03
Tavistock NJ
kudos:5
Besides iMessage, what other chat apps are there? Not everyone has an iPhone.

djrobx
Premium
join:2000-05-31
Valencia, CA
kudos:2
Reviews:
·Time Warner Cable
·VOIPO

Re: This is good news, but...

Before iMessage I used a push-enabled chat program with my AIM/Yahoo/MSN messenger accounts for people I talked to heavily. Facebook IM is probably what I'd use today since most people have that.

iMessage is just way more convenient, because it doesn't require any work for the "masses" who don't know or care about the fact that I don't have an unlimited text plan.

I've always thought text plans were a scam from day 1, so I've always staunchly refused to pay more than $5 for it.
--
AT&T U-Hearse - RIP Unlimited Internet 1995-2011
Rethink Billable.
Happydude32
Premium
join:2005-07-16
kudos:1
For those that use Blackberry's, there's BBM. You know, the concept that Apple blatantly ripped off when they came up with iMessage. This is nothing more than bringing back the concept of the old IM clients. AIM, YIM and ICQ have smartphone apps. The problem is getting everyone you know on a common messaging platform, that’s the great thing about SMS, it’s universal.

FFH
Premium
join:2002-03-03
Tavistock NJ
kudos:5

Re: This is good news, but...

said by Happydude32:

The problem is getting everyone you know on a common messaging platform, that’s the great thing about SMS, it’s universal.

And the main reason SMS is still viable.
--
"If you want to anger a conservative lie to him.
If you want to anger a liberal tell him the truth."
Kearnstd
Space Elf
Premium
join:2002-01-22
Mullica Hill, NJ
kudos:1

Re: This is good news, but...

SMS also works even when the data connection is down. As in you have bars and can make a voice call but for whatever reason do not have a good enough signal for data.
--
[65 Arcanist]Filan(High Elf) Zone: Broadband Reports

hey hey hey

@charter.com

Re: This is good news, but...

said by Kearnstd:

SMS also works even when the data connection is down. As in you have bars and can make a voice call but for whatever reason do not have a good enough signal for data.

Because SMS goes over the same frequency as voices calls as the moment. Data uses a different frequency.

For example with Verizon you have 1x 3G and 4G. Voice and text go over 1x, 3G and 4G are strictly data. This will change over time.

skeechan
Ai Otsukaholic
Premium
join:2012-01-26
AA169|170
kudos:2
I use Beejive which covers friends still using MSN Mess, Yahoo, Google, etc.
--
Nocchi rules.

IowaCowboy
Iowa native
Premium
join:2010-10-16
Springfield, MA
kudos:1
Reviews:
·Verizon Broadban..
·Comcast

1 recommendation

I still use SMS

My Verizon ShareEverything plan includes unlimited talk and text so I still use voice and SMS on a daily basis. You can't use iMessage to text a dumb phone (which is what my mother uses) and Grandma barely understands how to use the voice feature on a basic phone.

At least dumb phones are only $30 per month on a VZW ShareEverything plan to make up for their reduced functionality.
wkm001

join:2009-12-14

Re: I still use SMS

I'm on the ShareEverything plan too. My wife talks and texts non stop. Talking about 2000 minutes a month and texting at least 3000 a month. This plan works out really well for us but I'm hoping Straight Talk gets 4G access soon. I would love to pay ~$60 less per month.

Sadly a smart phone is only $10 more per month, but then you share the data too...
megarock

join:2001-06-28
Catawissa, MO
Reviews:
·Charter

...

There would be way more subscribers if you didn't overcharge for everything. I don't text a ton since most are business calls and you can't text them and expect to get the job. Data is way overpriced. Minutes are overpriced.

I use my phone minimally and if I can offload to wifi and use Google Voice I do. Screw you AT&T.

IllIlIlllIll
EliteData
Premium
join:2003-07-06
Hampton Bays, NY
kudos:7

SMS

at times, SMS is more reliable than chat im's when i need to get a message out, especially if there is no internet available and especially when sending the SMS message with delivery confirmation, you will know when the other person gets it when they arrive in an area that has signal or turn their phone back on.
--
Suffolk County NY Police Feed - »www.scpdny.com
PS3 Gaming Feed - »www.livestream.com/elitedata

pike
Premium,MVM
join:2001-02-01
Washington, DC
kudos:3

Re: SMS

I've never heard of SMS delivery confirmation. I do know that the GSM standard allows for a "delivery report", but that does not necessarily mean the SMS was delivered to the recipient - typically it indicates whether or not the SMS was accepted by the network.
kaila

join:2000-10-11
Lincolnshire, IL

Re: SMS

said by pike:

...I do know that the GSM standard allows for a "delivery report", but that does not necessarily mean the SMS was delivered to the recipient....

True, the 'delivery report' just means the network's SMSC (SMS-Center) received routing information to find the receiving phone, and passed the message on.

IllIlIlllIll
EliteData
Premium
join:2003-07-06
Hampton Bays, NY
kudos:7
said by pike:

I've never heard of SMS delivery confirmation. I do know that the GSM standard allows for a "delivery report", but that does not necessarily mean the SMS was delivered to the recipient - typically it indicates whether or not the SMS was accepted by the network.

testing with a friends phone, i sent a text message from my phone (T-Mobile) while my friends phone (Verizon) was turned off, the status of the message remained "requested" until my friend turned the phone back on, then the status changed to "delivered".
--
Suffolk County NY Police Feed - »www.scpdny.com
PS3 Gaming Feed - »www.livestream.com/elitedata

koolman2
Premium
join:2002-10-01
Anchorage, AK

Re: SMS

It depends on the remote network. Some networks will send the notification the moment they receive the SMS into their system. Others will send it only when it is actually deliveres to the destination device.

SHoTTa35

@kfvaluation.com
Not the case for networks in general, some companies might not have their SMSC setup properly but I know for a fact if you SMS my phone while it's off and request a delivery report (AT&T MVNO here) it will not show you as "Delivered" till I've powered back my phone and have received the message. It will stay that way for up to 3 days then returns a "Failed" message if my phone hasn't been on since then.

My phone is a Nexus 4 but it has nothing to do with the phone, more the SMSC and it's configuration. I know Verizon used to be screwed up in that regard but at least (apparently the guy about says so) it's fixed now.
ShellMMG

join:2009-04-16
Grass Lake, MI
Reviews:
·Frontier Communi..

It's just a matter of time in the USA

...Before ISPs will stop selling dumbphones. With VZW's "Screw Everyone" plans you don't save a lot by sticking with them. There are just a few models available that have slide-out texting keyboards.

Our daughter, now graduated from college and enjoying Life in the Big City, has her own phone and plan. Our son will be moving on so there's another line to drop, but I'm digging my heels in to avoid getting a smartphone and a second mortgage data bill.

hey hey hey

@charter.com

Re: It's just a matter of time in the USA

said by ShellMMG:

...Before ISPs will stop selling dumbphones. With VZW's "Screw Everyone" plans you don't save a lot by sticking with them.

Some people actually save money. If you don't like the plans don't use them.

let see

Old plan: 2 smartphones 700 minutes, unlimited texting, two 2 GB data plans( data can't be shared ). No tethering allowed. $160 a month before taxes/fees

Share Everything: 2 smartphone unlimited minutes, unlimited texting, 6 GB shareable data and INCLUDES tethering $160.

There are just a few models available that have slide-out texting keyboards.

That's not a Verizon thing. That's all carriers. And that's not the carriers' fault. Blame the phone manufactures.
TBBroadband

join:2012-10-26
Fremont, OH
Reviews:
·AT&T U-Verse
·MegaPath
First, ISPs don't have cell phones. Cell companies have phones. And if you're worried about a data plan price. look at one of the many resellers/MVNOs. they use the same networks and phones, and are more than 1/2 off the actual brand names. 2 smart phones on Net10 with data, etc all unlimited $90 per month. Maybe 95$ with taxes???

David
I start new work on
Premium,VIP
join:2002-05-30
Granite City, IL
kudos:101
Reviews:
·DIRECTV
·AT&T Midwest
·magicjack.com
·Google Voice

I turned off iMessage

for the SMS flavor unfortunately, I get unlimited sms on my plan anyway so if I am already getting it, just as well use it.

Came in handy last year black-friday shopping when all the iMessagers were complaining about not being able to send messages and I was still able to.

I still laugh about that on occasion.
--
If you have a topic in the direct forum please reply to it or a post of mine, I get a notification when you do this.
Koetting Ford, Granite City, illinois... YOU'RE FIRED!!
tommy2text0

join:2011-05-24
Stratford, CT

Why doesn't everyone use Google Voice?

Google Voice is the only true free "universal" SMS texting solution. It doesn't matter if the other person is using it or not, like all of these other apps.

David
I start new work on
Premium,VIP
join:2002-05-30
Granite City, IL
kudos:101
Reviews:
·DIRECTV
·AT&T Midwest
·magicjack.com
·Google Voice

Re: Why doesn't everyone use Google Voice?

I do use google voice quite frequently as well. if I am on my laptop I use it, if not I am doing it right from my phone.

I don't get many SMS messages on my google voice or my regular number these days, so it doesn't really matter what I use.

amarryat
Verizon FiOS

join:2005-05-02
Marshfield, MA

If Google Voice had MMS...

... this report would probably have come out a year or two ago.

timcuth
Braves Fan
Premium
join:2000-09-18
Pelham, AL
Reviews:
·Charter
·AT&T Southeast

ChatIM vs SMS

I thought I was SMS messaging until my son asked me how I was using iMessage from my Samsung non-smart phone. I said, "I'm not, I'm using my iPod." And I still didn't know I wasn't SMS messaging until I read this article.

Tim
--
"Life is like this long line, except at the end there ain't no merry-go-round." - Arthur on The King of Queens
~ Project Hope ~
sblaze

join:2003-08-14
Cochran, GA

the good old days never left

I remember the days when it was IRC and IMs on computer. I also remember the woes of everyone using different chat programs. I would deal with them today the same way I did back them. multi account chat programs. They let you consolodate all your friends into one program. They generally lack all the features of each different IM or it's protocol but man was it easier. It just so happens that one of the IMs I used on PC is also on Android. Trillian. What all it supports now I do not know... but I'm sure it does the majors.

As far as the SMS vrs IM debate goes... I haven't given it much thought. I reply on whatever it comes in on. Most times its IM and sometimes its SMS.