Europe SMS & MMS Market

SUMMARY

MMS Struggling to Gain Mass Acceptance and Increase Mobile Data Revenues

Mobile operators' decision to include multimedia messaging services (MMS) in their portfolio stemmed from the need to combat the growing competition and saturation in the short messaging services (SMS) market. However, the initial hype surrounding MMS as a superior delivery mechanism for premium entertainment services and its ability to complement SMS and augment the existing revenue streams for mobile operators has fallen short of expectations. Overcoming several technical and commercial challenges such as network interoperability and high prices is critical for MMS to gain mass acceptance. Having removed the obstacles to success, mobile operators can count on MMS to increase the average revenue per user (ARPU), expand market share and reduce the customer churn rate.

This Frost & Sullivan research examines the potential of MMS in expanding the revenue and growth of mobile messaging services. This study discusses the prevailing market challenges and provides strategic recommendations to overcome them. It also examines the current social, regulatory and technological trends related to the SMS and MMS market and their impact on revenue potential.

Proliferation of Handsets with Integrated Camera Drives Popularity of MMS

SMS is likely to dominate the mobile messaging market for person-to-person (P2P) messaging since it scores over MMS in terms of simplicity, accessibility and ease-of-use. However, with the increasing interest in mobile handsets with colour-screens and integrated cameras mobile operators visualise a brighter future for MMS. "The success of SMS has only boosted mobile operators' confidence in developing MMS on a larger scale," says the analyst. "With the emergence of multimedia phones, MMS is being viewed as an extension of P2P messaging wherein customers can also send instant photos." Moreover, camera phones with mega pixel resolutions promise to deliver higher-quality photos and create additional opportunities for MMS in medical imaging applications.

MMS Serves as the Ideal Platform to Develop New Applications

"MMS is not limited to photo messaging and offers a platform for creating new types of applications that add a rich visual feel to many of the services already offered by SMS," explains the analyst. "Mobile operators must, therefore, position MMS as a primarily fun and personal content application."

In this regard, MMS is likely to thrive on the application-to-person messaging traffic. Mobile operators need to leverage the MMS capabilities to develop interactive revenue generating services such as cartoons, movie trailers, \'buddy finder' and virtual pet caretaker. In addition, mobile operators must ensure that potential customers are aware of the advantages that MMS provides in terms of advanced message management, delivery, redirection, storage and notification.

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Technologies

The following technologies are covered in this research:

• Short Message Service (SMS): A text message service that enables short messages of generally no more than 160 characters in length to be sent to and transmitted from a cellular phone.
• Multimedia Message Service (MMS): An enhanced messaging service that enables transmission of graphics, video clips and sound files from and to cellular phone units.

Benefits of this Service

Identifies Current Trends in the Mobile Messaging Market

This research service examines the current social, regulatory and technological market trends related to the short messaging services (SMS) and multimedia messaging services (MMS) markets and their impact on revenue potential. It also analyses the drivers, restraints and challenges and the key success factors in the MMS and SMS markets.

Provides Strategies to Extend the SMS Market Growth Span

This comprehensive study of the mobile messaging market provides strategies that mobile operators can use to combat SMS market saturation and increase revenues. This study also outlines the opportunities in the MMS market that mobile operators can leverage to supplement and complement their existing portfolios and enhance the average revenue per user (ARPU).

Distinguishes Assumptions from Reality in the MMS Market

This research service analyses the discrepancy between the assumptions made by mobile operators in 2002 when MMS was launched and the reality that has unfolded in the subsequent two years. This study highlights the reasons for failure and the corrective actions taken by some mobile operators to revitalise the MMS market. The analysis also compares MMS with SMS and provides factors driving its growth in application-to-person services. Strategies for successful deployment of MMS service assist participants in increasing their market share.

Provides Comprehensive Geographic Analysis

This study provides a thorough analysis of the market trends for each geographical region in Europe. It also provides SMS and MMS revenue, volume and subscriber base forecasts for each country for the period 2004 to 2008.

TABLE OF CONTENTS

1. Executive Summary

• 1. Executive Summary
  • 1. Executive Summary

2. Context

• 1. Context
  • 1. Market Environment and Challenges
  • 2. Mobile Data Revenue Options

3. Short Messaging Service (SMS)

• 1. Short Messaging Service (SMS)
  • 1. Definition and Market Snapshot
  • 2. SMS Benefits
  • 3. SMS-Key Success Factors
  • 4. SMS Applications
  • 5. SMS Revenue Model
  • 6. SMS Market- Drivers and Restraints
  • 7. SMS Market Forecast
  • 8. Recommendations to Mobile Operators
  • 9. Market Trends
  • 10. Conclusion

4. Multimedia Messaging Service (MMS)

• 1. Multimedia Messaging Service (MMS)
  • 1. Evolution of Messaging Services
  • 2. MMS Features
  • 3. Comparison of SMS and MMS
  • 4. MMS Benefits
  • 5. MMS Applications
  • 6. Emerging Lessons from MMS Market
  • 7. MMS Market: Success and Failures
  • 8. Drivers and Restraints
  • 9. Key Success Factors
  • 10. Market Forecast
  • 11. Market Trends
  • 12. Recommendations to mobile operators
  • 13. Conclusion

5. Geographical Analysis

• 1. Geographical Analysis
  • 1. The Market in Austria
  • 2. The Market in Belgium
  • 3. The Market in Denmark
  • 4. The Market in Finland
  • 5. The Market in France
  • 6. The Market in Germany
  • 7. The Market in Italy
  • 8. The Market in Ireland
  • 9. The Market in Netherlands
  • 10. The Market in Norway
  • 11. The Market in Portugal
  • 12. The Market in Spain
  • 13. The Market in Sweden
  • 14. The Market in UK

6. Frost & Sullivan Awards

• 1. Service Innovation Award
  • 1. Award Recepient-TIM (Telecom Italia Mobile)
• 2. Competitive Strategy Leadership Award
  • 1. Award Recepient-Vodafone
• 3. Market Leadership Award
  • 1. Award Recepient-TeliaSonera Finland

List of Figures

• Western Europe SMS Market (2002-2008)
• Western Europe MMS Market (2002-2008)
• Western Europe Mobile Operators\' Total ARPU per Month
• Western Europe Advanced Mobile operators\' Data Revenue Percentage in Total Revenue
• Mobile Operator Data Revenue Breakdown
• Western Europe SMS Market (2002-2008)
• Western Europe SMS Subscriber Base (2002-2008)
• Western Europe MMS Market (2002-2008)
• Western Europe MMS Subscriber Base (2002-2008)
• Austria SMS & MMS Revenues & Volume (2002-2008)
• Austria SMS & MMS Subscriber Base (2002-2008)
• Belgium SMS & MMS Revenues & Volume (2002-2008)
• Belgium SMS & MMS Subscriber Base (2002-2008)
• Denmark SMS & MMS Revenues & Volume (2002-2008)
• Denmark SMS & MMS Subscriber Base (2002-2008)
• Finland SMS & MMS Revenues & Volume (2002-2008)
• Finland SMS & MMS Subscriber Base (2002-2008)
• France SMS & MMS Revenues & Volume (2002-2008)
• France SMS & MMS Subscriber Base (2002-2008)
• Germany SMS & MMS Revenues & Volume (2002-2008)
• Germany SMS & MMS Subscriber Base (2002-2008)
• Italy SMS & MMS Revenues & Volume (2002-2008)
• Italy SMS & MMS Subscriber Base (2002-2008)
• Ireland SMS & MMS Revenues & Volume (2002-2008)
• Ireland SMS & MMS Subscriber Base (2002-2008)
• Netherlands SMS & MMS Revenues & Volume (2002-2008)
• Netherlands SMS & MMS Subscriber Base (2002-2008)
• Norway SMS & MMS Revenues & Volume (2002-2008)
• Norway SMS & MMS Subscriber Base (2002-2008)
• Portugal SMS & MMS Revenues & Volume (2002-2008)
• Portugal SMS & MMS Subscriber Base (2002-2008)
• Spain SMS & MMS Revenues & Volume (2002-2008)
• Spain SMS & MMS Subscriber Base (2002-2008)
• Sweden SMS & MMS Revenues & Volume (2002-2008)
• Sweden SMS & MMS Subscriber Base (2002-2008)
• UK SMS & MMS Revenues & Volume (2002-2008)
• UK SMS & MMS Subscriber Base (2002-2008)
• Vodafone Data Revenue Percentage in Total Revenue in Major European markets