The Homa Files

According to the WSJ:

U.S. cellphone users sent and received more than 1 trillion texts in the second half of 2010 … but, the rate of growth has subsided.

Text traffic will come under more pressure in the months ahead.

Why?

More folks are messaging thru Facebook and IPad owners can use WiFi connections to bypass carriers and send messages over the Internet.

”It’s not cool anymore to SMS.”

Dutch telecommunications company Royal KPN … reported its youth-oriented brand, Hi, saw an 8% decline in outgoing SMS or text messages per customer in the first three months of this year compared with the first quarter of 2010.

So what?

For carriers such as Verizon, the texting business has low costs and high margins.

A dollar of texting revenue produces at least 80 cents of profit compared with about 35 cents of profit from $1 in wireless data or voice services

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This entry was posted on June 13, 2011 at 6:39 am and is filed under Telecom. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.