Telcos Lost $13.9 Billion in SMS Revenue during 2011 due to Messaging Apps Reveals Study

The emergence of social messaging applications has come as a curse for mobile network operators worldwide. A new report highlights how the collective yearly revenues earned by network operators through their text messaging services dropped by $13.9 billion during 2011.

According to a study carried by market research and analysis outfit Ovum, the global use of web based popular services such as Facebook Chat, BlackBerry Messenger and Whatsapp has been constantly on the rise since few years and that growth is coming at the cost of mobile operators whose text message services are falling on the scale of popularity.

The report was based on the usage-statistics of the popular social messaging applications used by smartphone owners from all across the world. These applications use the data connectivity of the devices in order to send messages, which needless to say, is far more cost effective in comparison to the traditional Short Messaging Services (SMS).

"Operators must remain open to partnering with app developers, sharing end-user data with them and allowing integration with the user's social connections," author of the research, Neha Dharia said in a statement, reports BBC News.

"Working closely with handset vendors will also be important; they control some of the most popular social messaging apps, and can also provide preloaded applications," she added.