According to a report by Ovum, mobile networks are expected to lose about $32.6bn in revenue by the end of 2013 and about $86bn by 2020.
According to the report, the mobile networks have lost about $25bn in texting revenue last year due to the popularity of chat apps like Whatsapp, Apple’s iMessage, and BlackBerry Messenger.
Ovum consumer analyst Neha Dharia said SMS growth rates fell from 14% in 2011 to 8% in 2013, and SMS revenues have fallen since the emergence of social messaging.
"After 2013 mobile broadband revenues will form the bulk of operators’ non-voice revenues (contributing 43% of revenues in 2014)," Dharia said.
"They will outpace revenues from SMS, with messaging forming a smaller proportion of data revenues (40% in 2014); 2013 will be the last year that SMS brings in the largest proportion of non-voice revenues, and by 2015 SMS revenues will begin to plateau."
"There are several reasons for the erosion of messaging revenues, and the rise of social messaging players is a key factor. The bundling of SMS with calling minutes and mobile broadband plans has also contributed to the decline of messaging revenues."
According to the report the relationship between telecom operators and OTT players is expected to intensify during 2013.
"Most social messaging services are currently either free or based on discounted plans. In 2013 we will see a large number of social messaging companies begin to grow into content platforms.
"Social messaging’s viral growth, high level of engagement, and sticky nature make it a strong foundation on which to build a content platform," Dharia said.
