SMS loses ground to net-based apps on mobile phones
The humble SMS (short messaging service) is slowly losing ground. SMS, a major contributor to non-voice revenues of telecom service providers for several years, is gradually losing its significance in the wake of increasing adoption of internet-based cross-platform messaging applications.
The impact is evident from the declining number of outgoing SMSs per subscriber per month, which fell from 39 in October-December 2012 to 28 in October-December 2013 for GSM service providers and from 21 to 17 for CDMA service providers. The share of SMS in total revenues for GSM service providers declined from 5.84% to 3.39% during the period, data compiled by Credit Analysis and Research Ltd (CARE) showed. For CDMA service providers it declined from 1.80% to 1.66% for the same period.
The number of subscribers who accessed internet on mobile devices was 220 million on a total wireless subscriber base of 886 million as on December 31, 2013. In contrast, only 143 million subscribers accessed internet on a total subscriber base of 868 million as on March 31, 2013. Unsurprisingly, mobile data now accounts for 50% of the total non-voice mobile revenue of telecom operators.
The proliferation of affordable smart phones and lucrative data plan offers have fuelled the growth of the mobile data segment. Smartphones are now available at a price of as low as 4,500, while several models of tablets are also available in the price band of 6,000-7,000.
"The increased affordability of smartphones and tablets is playing a major role in taking mobile internet to telecom subscribers," CARE Ratings said. As per industry estimates, the number of smartphone users in the country is expected to be over 100 million by the end of 2014.
The impact is evident from the declining number of outgoing SMSs per subscriber per month, which fell from 39 in October-December 2012 to 28 in October-December 2013 for GSM service providers and from 21 to 17 for CDMA service providers. The share of SMS in total revenues for GSM service providers declined from 5.84% to 3.39% during the period, data compiled by Credit Analysis and Research Ltd (CARE) showed. For CDMA service providers it declined from 1.80% to 1.66% for the same period.
The number of subscribers who accessed internet on mobile devices was 220 million on a total wireless subscriber base of 886 million as on December 31, 2013. In contrast, only 143 million subscribers accessed internet on a total subscriber base of 868 million as on March 31, 2013. Unsurprisingly, mobile data now accounts for 50% of the total non-voice mobile revenue of telecom operators.
The proliferation of affordable smart phones and lucrative data plan offers have fuelled the growth of the mobile data segment. Smartphones are now available at a price of as low as 4,500, while several models of tablets are also available in the price band of 6,000-7,000.
"The increased affordability of smartphones and tablets is playing a major role in taking mobile internet to telecom subscribers," CARE Ratings said. As per industry estimates, the number of smartphone users in the country is expected to be over 100 million by the end of 2014.
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