Wednesday 19 October 2011

Iphone iOS 5 will remove all SMS revenue for mobile phone providers

Not sure if any telecom analysts read this but:

IoS 5 will enable iMessage in all iphones. This, together with 3G data tariffs and ICloud subscriptions will mean that all the major UK telecoms will lose revenue from SMS. Remember that SMS revenue was far higher than data revenue - its a service that gains a ludicrous margin in %'000s. It cannot be replaced by margin from data services easily. As Iphones become cheaper and cheaper and eventually hit the PAYG market the telecom companies will really miss this revenue. No more excessive charges for SMS text messages whilst abroad. If you're on wi-fi it'll be free through iCloud.

On the other side of coin. Apple will now have access to information from all the texts sent around the world and be able to build a network to determine the people who are most interconnected and targeted for advertising. A real world facebook - no need to register, you just have to use a mobile phone and send texts on a regular basis. That's pretty much 60-70% of the UK earning population - if not more. They'll use this technology eventually to target adverts for adMob and beat google and Facebook in the mobile space.

Let's see if I'm right...

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