Mobile Operators Must Act Now to Capitalise on Predicted $4.6bn Mobile Instant Messaging Market

New report from Strategy Analytics and Colibria suggests operator MIM services could capture over 75% of mobile IM market.

Operators could lose out on a majority hold of the emerging Mobile Instant Messaging (MIM) market despite their loyal SMS communities if they do not act now. Messaging revenue accounts for up to 80% of operators’ data revenues, with person-to-person SMS generating $56 billion in 2006 alone. However, operators need to drive the up take of new generation services now to retain their hold on the evolving messaging market according to a new report from Strategy Analytics and Colibria.

Strategy Analytics predicts the value of the MIM market will increase dramatically from this year, to reach $4.6 billion globally by 2011. Operators have the opportunity to capitalise on one of the biggest messaging revenue growth areas by extending their current SMS services to incorporate new generation instant messaging features like buddy lists and dialogue based group communication.

However, the popularity of the three major Internet IM service providers could threaten future data revenues for operators. Since its inception PC-IM, has been incredibly successful, particularly in the youth market, with over 300 million people using an IM service worldwide today. This means that although mobilising Internet IM is a service that should be considered by mobile operators, as already seen in the market, high operator revenue growth with this model will not necessarily follow, even if usage is high.

Strategy Analytics predicts that operator-owned IM services could generate more lucrative revenue streams in the coming years, than internet gateway IM services, on the proviso that the service is rolled out and marketed effectively. Achieving successful mobile IM services are, according to the report, hinged on interconnected services between networks as well as interoperability between SMS and MIM users. The report also suggests that it will be possible for the two different services to co-exist. By 2011 Strategy Analytics predicts that next-generation SMS will reach $3.4 billion in revenue for operators with Internet based MIM services reaching $1.2 billion.

Phil Taylor, Senior Analyst at Strategy Analytics commented: "The fact that SMS currently accounts for in excess of three-quarters of data ARPU illustrates the significance of messaging to the future mobile market. While there is currently a huge buzz about content and entertainment focused data, the embryonic nature of these services is thrown into sharp focus by the huge revenues messaging brings. Operators have a big opportunity in new-generation messaging services and, if they don’t take it, future messaging revenue growth potential will not be realised."

Keith Gibson, CEO Colibria, commented: "Addressing subscribers’ needs is fundamental to every mobile service be it operator or internet based. Although the messaging market is evolving to provide more converged services linking PC users with mobile, operators have the opportunity to establish very effective MIM services and brands, as well as build a clear evolutionary service path for Fixed Mobile Convergence. There is evidently space for both mobilised Internet IM and mobile to mobile operator IM services to co-exist, but it is vital that all these services roll out in a way that engages subscribers."

To download a copy of the white paper please visit http://www.colibria.com

About Colibria
Colibria was founded in 2000 and is already a leading international player in the field of new generation Mobile Instant Messaging (MIM) solutions. Based in Norway, Colibria also has locations in the UK, Belgium, Spain, Singapore and the Philippines. Colibria has a global customer base of mobile operators in Europe, Asia and Latin America, as well as working with leading systems integrators. Strategic partners include LogicaCMG, Alcatel-Lucent Technologies, Nokia, and Motorola.

Colibria’s IM platform provides an end-to-end solution from advanced server technology through to innovative handset clients. It delivers the infrastructure for launching instant messaging and associated multimedia services as well as advanced IMS based messaging and presence services. Colibria is focused on ensuring interoperability between devices, platforms and operators. Its IMPS and SIP/IMS test server facilities are now the de facto standard for product and service trials, with users in over 30 countries around the world.

Colibria is an active participant in the international standards arena, contributing extensively to the OMA IMPS forum as a member of the Open Mobile Alliance, as well as the GSMA. It is also a founding member of the COMET alliance, a global consortium committed to the delivery of end-to-end converged messaging solutions.

Colibria’s investors are Northzone Ventures (www.northzone.com), Verdane Capital (www.verdanecapital.com) and Ferd Venture (www.ferdventure.no).

For more information, please contact:
Emma Turner / Cristina Whittington
Nelson Bostock Communications
Tel: 0207 792 7440

Email:emma.turner@nelsonbostock.com / cristina.whittington@nelsonbostock.com