Mobile messaging means money, study says

Mobile messaging of all types will be a big moneymaker, according to a new report from U.K.-based Portio Research. While short message service (SMS) remains the fastest growing form of text messaging, multimedia message service is poised to generate similar revenues -- $50 billion by 2010 – with fewer users, based on its premium status, the report states.

Mobile Instant Messaging, meanwhile, is predicted to grow in popularity, especially in the U.S., and begin overtaking SMS by 2009 or 2010.

The report, “Mobile Messaging Futures 2005 – 2010,” said MMS is not the market failure it is often portrayed to be, but has not succeeded SMS as the predominant form of messaging. While interoperability problems and low penetration of handsets that support MMS have slowed its usage, Portio advises mobile operators to continue promoting MMS as a premium service, while also encouraging usage of cheaper “pier-to-pier picture messaging,” until the tools needed to support MMS are more widely in use.

Other forms of mobile messaging such as mobile e-mail are expected to grow as well but at a slower pace than SMS.