Submitted by Mike Grenville on Thu, 14 Jul 2005 13:35

SMS has finally make an impact in the USA with messaging traffic up 59% in the last year according to an Informa report

The value of the US mobile data market increased by around 80% during the year to March 2005, according to the June 2005 edition of Informa Telecoms & Media’s World Cellular Data Metrics, as interoperability agreements finally helped SMS make a significant impact on the market, which has traditionally lagged behind Europe and Asia.

Total revenues from non-voice services for the four largest US mobile operators totaled more than USD 1.2 billion in Q1 2005, compared to USD 689 million in the same period of 2004.

TV Interaction and Interoperability Drives Take Up

GSM operator T-Mobile was particularly noteworthy; its subscribers sent a total of 3.6 billion messages during Q1 2005, equivalent to around 67 per subscription per month, more than double the volume 12 Months ago. The operator’s recent launch of bundled SMS packages, including one offering unlimited messages for USD 15 per month, is sure to drive traffic still higher. As well as interoperability, continued subscriber education and growth in popularity of interactive TV programmes have boosted SMS traffic levels in the USA.

“Thanks largely to SMS, data now typically contributes 6-10% of mobile operators’ total revenues in the States,” observed Mann. “While this still remains some way below the industry average, it marks a significant increase from the 4% recorded this time last year and less than 2% at the beginning of 2003.”

Non-voice services form an average of 15-16% of mobile operators’ revenues in Western Europe, according to the report, while in the leading data markets in Asia they typically generate 20-30%. The Philippines continues to stand out as a notable exception, with Smart generating 48% of its revenues from data in Q1 2005 and Globe 43%.

Data as a % of revenue from the four largest US mobile operators