Posted by: | 19th Oct, 2011

iMessage: iThreat to Wireless Carriers

Apple takes text messaging to another level with 'iMessage'

The times when wireless carriers have been able to charge customers for sending and receiving text messages are soon coming to an end. With the introduction of ‘iMessage’ from Apple, why pay that extra 20 cents to send or receive a text message? According to the article: “[m]ore than two trillion text messages are sent each year in the United States, generating more than $20 billion in revenue for the wireless industry.” However, with the introduction of substitutes to text messaging, many wireless carriers have begun to raise their text messaging plan prices in order to prevent a major decline in revenue.
Not only Apple, but other methods such as Blackberry messaging, Skype, and Whatsapp have become popular amongst the new generation who are searching for alternative and cheaper methods of contacting others. Even though some of these methods may require a data plan if no wi-fi is provided, “a $25-a-month, two-gigabyte data plan” is enough to cover the costs of up to “$1,500 to send a megabyte of text traffic”

Another popular and cheaper alternative to text message: Whatsapp

In an attempt to prevent revenue decreases, AT&T has recently introduced two different texting plans. Subscribers are to choose between either: “$20 a month to send unlimited text messages or pay 20 cents for each message sent and received” instead of their previous “$10 for unlimited text messaging” service. Even though this may help in the short run, customers who are acquiring newer devices may soon turn to the alternative methods instead to cut down costs. Maybe it’s time for wireless carriers to follow with the new technological trends and develop alternative strategies to protect their business?

Images from: http://static.product-reviews.net/wp-content/uploads/Apples-iMessage-announcement-leaves-iPhone-and-iPad-carriers-stumped.jpg
http://www.fuelgrafics.com/blog/wp-content/uploads/2009/11/whatsapp.jpg

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