Monday, October 10, 2011

Free Texting Apps Are Threat to Wireless Carriers - NYTimes.com

Check the article link below for an SMS market reality check

More than two trillion text messages are sent each year in the United States, generating more than $20 billion in revenue for the wireless industry. Verizon Wireless alone generates as much as $7 billion a year in revenue from texting, or about 12 percent of the total, Mr. Moffett said, and texting brings in about a third of the operating income.

This highly profitable product was something of a happy accident for cellphone carriers. Srinivasan Keshav, a professor at the University of Waterloo who studies mobile computing, said text messages were almost an afterthought when cellphone standards were being developed in the late 1980s.

Free Texting Apps Are Threat to Wireless Carriers - NYTimes.com

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