Messaging drives the mobile business model - and it is hugely profitable. Revenues of approximately $140 billion with profits to match.
For phone carriers this is the key to current survival and future opportunity. They are rolling in revenue from SMS messaging which has softened the impact of declining land line sales and actual phone conversations.
But there is now a disruptive innovation on the market and it could be a killer. The new messaging services are called OTT, which stands for over-the-top. And are they ever.
The OTTs provide instant messaging over the net that does not require wireless cell networks. Some provide the service for free and charge advertisers to send messages. Some prohibit adverting messages but offer phone carriers promotional opportunities. Some carriers are fighting but some think the best approach is to acquire the new services. Whatever the final outcome, the emergence of the OTTs reminds us that no one in any business dependent on technology and communications can afford to become complacent. JL
Business Insider reports: