The development of multimedia messaging services (MMS) is to surge during 2002 following the signing of a number of major contracts between mobile phone operators, according to a new report from Ovum.
Mobile operators are keen to develop MMS after the phenomenal success of SMS, or text messaging, which now accounts for up to 10-15% of some operators’ revenues. MMS will also provide the first ‘compelling’ applications for third generation (3G) mobile technology.
However, there will need to be a ‘critical mass’ of MMS-enabled phones if consumer take-up is to be substantial. Ovum forecasts that SMS technologies will continue to be the dominant method of person to person messaging for the next two to three years and that MMS will begin to grow strongly around 2004-2005.
John Delaney, principal analyst at Ovum, says: “Although vast rewards will not be evident immediately, MMS will be one of the most important weapons in a 3G operator’s armoury of mass-market services. It will catalyse a market for services and associated content that Ovum estimates will be worth around $70 billion globally by 2007, with more growth still to come. Around $31 billion of this will come from person to person messaging, with a further $39 billion from the entertainment and information services that MMS will enable – machine to person messaging.”
