Abstract
In terms of margin delivery, mobile messaging has been the best performing product in the MNO armoury since the SMS application took off alongside the extension of mobile telephony to the consumer segment following the availability of prepay tariffs. A service that was expected to be used for technical signalling applications by a small proportion of users actually formed the basis of a whole new low-cost mobile communications culture. The fact that MNOs had not anticipated this market is demonstrated by the fact that many did not even implement SMS in their early GSM roll-outs - if they had recognised the potential they would certainly have ensured earlier availability. MMS has been labelled a "failure" because it has not repeated the remarkable success of SMS, though in reality MMS has been extremely successful since the early factors discouraging use (unclear pricing, complexity and lack of support) have been addressed.
Now MNOs must assess how they position SMS and MMS together within their mobile service portfolio. Are the services competing or complementary, what is the optimum ratio of MMS to SMS price and will success with one format compromise results from the other? In this report, Mobile Market Development examines the relationship between SMS and MMS and offers MNOs eight core recommendations to ensure they can maximise their income and profit from both platforms.
Table of Contents
- 1. Overview
- 2. Introduction
- 2.1 Background
- 2.2 Report Content
- 3. The Mobile Messaging Market
- 3.1 Background and History
- 3.2 Market Size
- 3.3 MMS Versus SMS
- 4. Messaging Price Development
- 4.1 MMD Research Basis
- 4.2 Price Evolution 2005 to 2007
- 4.2.1 Postpay (Contract) Messaging Prices
- 4.2.2 Prepay Message Prices
- 4.2.3 Ratio of MMS to SMS Price
- 4.3 Bundles and Add-ons
- 5. MNO Messaging Promotion
- 5.1 Promotional Approaches
- 5.2 O2 UK SMS/MMS Approach
- 5.3 Orange France SMS/MMS Approach
- 6. Conclusions
- 7. Recommendations
