WebProNews

As mobile operators have seen the average revenue per user (ARPU) fall, they have looked to increase revenue with value added services; however the most profitable data service is still text messaging, according to In-Stat.

Inexpensive, reliable, and easy for mobile users to operate, Short Message Service (SMS) and Multimedia Message Service (MMS) provide solid revenue streams for Mobile Network Operators (MNOs).

Frank Dickson

"SMS may be a basic, cheap technology, but it still has much life as a MNO cash cow," says Frank Dickson, In-Stat analyst.

"The keys to SMS profitability are its ease-of-use, inexpensive price tag, global reach, and increased reliability as infrastructure development increases in more rural global regions. In developed areas, however, it has become increasingly important for mobile operators to find ways to enhance and personalize the SMS service offering."

Users are sending more than 2 trillion mobile messages per day globally as of the end of 2008.

The In-Stat report found that consumers that use mobile messaging also significantly more voice minutes on average.

Along with paying for more value added services, U.S. mobile messengers are also likely to pay up to 25 percent more for their handsets.