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Margins under pressure: WhatsApp generates three times more daily traffic than SMS

09 Jan 2017
Margins under pressure: WhatsApp generates three times more daily traffic than SMS

Margins under pressure: WhatsApp generates three times more daily traffic than SMS

WhatsApp now generates nearly three times as much daily traffic as SMS, according to a new research report from Juniper Research, highlighting the impact on mobile operators’ margins.

The new research, Mobile operator business models: Challenges, opportunities & strategies 2017-2021, analyzes the scale of operators’ traffic decline together with the uptake of over-the-top (OTT) VoIP and message services.
The study calculates that consumers’ shift from operator voice and text services to OTT messaging services and social media will cost network operators nearly $104 billion this year, equivalent to 12 percent of their service revenues.

Juniper also argues that operators will see continued erosion of traffic levels, as most alternative messaging platforms now incorporating or trialing multiple communication options, including group voice or video chat.
whatsapp-vs-sms

New revenues


However, the research highlights measures that operators could take both to halt the decline in core revenues and to develop new sources of income.

These include:

  • Big data and analytics packages for both consumer and IoT (Internet of Things) devices

  • Carrier billing payment options

  • Mobile money services

  • Mobile identity services


The research argues that with mobile increasingly deployed within the context of a quad-play offering, it is essential for telcos to provide consumers with attractive, original content to differentiate themselves.
According to research’s author Dr. Windsor Holden, “With mobile devices now regularly used for primary consumption of video content as well as snacking, operators providing popular film, drama and exclusive sports events over multiple channels are at a distinct advantage.”

This is why many service providers are making moves into the content and apps space – take AT&T’s recent proposal to acquire Time Warner.