How Mobile carriers Are Loosing To Free Social-Messaging Apps

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Free social-messaging applications like WhatsApp cost cellular network providers (Mobile carriers) around the world, as more customers have switched to smartphones with better Internet access, people are relying more on applications such as WhatsApp to communicate.

WhatsApp, Viber and other services use the Internet to send data instead of a cellular network, allowing users to send text, multimedia and voice messages for free, or close to it.

By Perseverance Tavagwisa

The rise of these applications has offered a cheaper source of communication, especially for correspondence between different countries, undercutting the texts that had once been a key source of income for carriers worldwide.

The trend has been that messaging is eating away into that revenue, in some countries more than others, and that trend will continue.WhatsApp is almost always cheaper than texting, especially across national borders.

The service is rapidly displacing traditional text messaging as the preferred method for young people to stay in touch on mobile devices.

The problem is that mobile carriers relied heavily on text messaging and minute plan (voice)revenues .Consumers are now talking less, eliminating SMS text to shift to a data plan to use software messaging services.

If we look at the cost on average of a data plan we see that data plans have significantly reduced in price because of carrier competition between each other to provide cheap data plans.This has marginally reduced the prices carriers can charge for data use.

The average price of data will continue to decrease as network speed increases. The Probable solution for most carriers is toinvest billions of dollars to improve speed not really to make money from data plans but as an incentive so consumers can switch to their companies to use their phone and SMS text message plans.

Hence forth the revenue lost in the text messaging business will be partially recovered in the data business .

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