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28 November 2017
| Alan Burkitt-Gray
Mobile operators are losing $7.65 billion a year through revenue leakage from their messaging operations – a sum that is equivalent to $21 million a day.
The revenue is going out through the so-called "grey
market", according to a presentation at this
week’s Messaging & SMS World conference in
Nick Lane, chief insight analyst and founder of Mobilesquared,
told the conference that revenue leakage is going down, but
will still be $30 billion between 2017 and 2022. He expects
lost revenue to be just under $4 billion in 2022.
"If every message was white, the [messaging] market would be
worth $19.3 billion in 2017, growing to $30.1 billion in 2022,"
Lane told the conference. That’s a compound annual
growth rate of 9%, he added.
The report, Global A2P SMS messaging forecasts 2017-2022, was
prepared after Mobilesquared spoke to operators, aggregators
and other companies in the business.
There will be 1.7 trillion application-to-person (A2P) messages
sent this year, said Lane, and that market will grow to 2.8
trillion in 2022. "Global traffic will grow 67% during the
forecast period," he told the conference.
Asia dominates the market, accounting for 83% of A2P traffic
this year, while North America will account for just 6%.
The grey market currently has a 48% share, but that will drop
to 15% in 2022, he forecast.