Telcos set to lose $23 billion as social messaging kills SMS

Money bags mobile telecoms firms may feel their wallets become slightly lighter as analysts forecast $23 billion losses in SMS revenue – thanks to social media messaging.

Telecoms operators around the world are set to feel the pinch as the likes of Facebook claw into profits usually collected through text messaging.  This is after a loss of $9 billion to social messaging in 2011.

Analysts at Ovum are about to release a report which will highlight the massive impact on firms which are seeing customers turn to IP based messaging players rather than paying to send a text.

The onus is now on telecoms companies to try and expand their range of services to compete.

With this in mind, telecoms firms are having to look to create new services to squeeze more cash out of customers through the IP channel.

Social messaging has allowed for companies to grow which are providing services that eat into profits of the major telecoms companies. 

By creating their own versions, telecoms firms can attract customers onto data plans, and in some senses the disruption could enable revenues to be shifted to other parts of their businesses.

Recently, the boss of US social messaging service WhatsApp said that his service would actually benefit mobile firms by helping move consumers to data plans as quickly as possible.