Mobile:

Wireless Instant Messaging: Propelling SMS and Desktop IM to the Next Level (report)

Datacomm Research
Market Study  October 2003

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Mobile operators are wise to invest in wireless instant messaging. Operators can obtain far higher revenue per megabyte from messaging services than from generic IP services--today, operators collect approximately 100 times as much. This report provides an in-depth look at wireless instant messaging opportunities and challenges. Essential reading for operators interested in extending SMS's success and public IM service providers interested in tapping enterprise opportunities.

Wireless Instant Messaging will enable mobile phone operators to transform short message service (SMS) into a more powerful service integrating presence, location, sophisticated user preferences, and multiple media. That is one of the conclusions of the new 54-page report, Wireless Instant Messaging: Propelling SMS and Desktop IM to the Next Level, released today by Datacomm Research Company.

“Wireless instant messaging presents significant consumer and enterprise opportunities for mobile phone operators,” said Peter Rysavy, President of Rysavy Research and the report’s author. "A large share of SMS traffic will migrate to feature-rich wireless instant messaging," he added.

“This report makes sense out of the burgeoning instant messaging market, and explains how wireless will spur interoperation between proprietary systems—leading to the widespread adoption of standards,” said Ira Brodsky, President of Datacomm Research Company.

Wireless Instant Messaging: Propelling SMS and Desktop IM to the Next Level is the result of numerous interviews with leading operators, software developers, and IM experts. The report includes sections on Technology Considerations, The Future of Messaging, and Threats, Opportunities & Strategies. More than 50 vendors are profiled.

Rysavy Research provides clients details and insight into wireless networking, assisting them in defining strategic directions, conducting market research, and deploying wireless applications. More information is available from the firm's Web site at www.rysavy.com.    

Wireless Instant Messaging: Propelling SMS and Desktop IM to the Next Level is the latest in Datacomm Research's CompetitiveEdge™ family of reports and is available for $995.00 (PDF version).  The price includes one hour of follow-on consultation. The report may be ordered online at the firm’s secure website www.datacommresearch.com. Visa, MasterCard, and American Express accepted. Orders may also be faxed to (314) 514-9793, phoned to (314) 514-9750, or mailed to Datacomm Research Company, 14318 Millbriar Circle, Chesterfield, Missouri 63017.

Additional conclusions found in Wireless Instant Messaging: Propelling SMS and Desktop IM to the Next Level: 

  1. Mobile operators are wise to invest in wireless instant messaging. Operators can obtain far higher revenue per megabyte from messaging services than from generic IP services. Today, operators collect approximately 100 times as much revenue/MB from short message service as they do from IP transport services.

  2. Instant messaging is on the verge of widespread acceptance as a business productivity enhancement tool. As enterprises deploy IM systems, they will want to extend them to mobile users.

  3. The dominant instant messaging systems today are based on proprietary protocols with no interoperability between service providers. However, standards-based solutions will be essential for interoperability between mobile phone operators, Internet-based IM service providers and enterprise systems, as well as to integrate presence and location.

  4. Most wireless IM solutions have been awkward, using either SMS with obtuse session-control messages or WAP minibrowsers. Needed are easy to use local clients that can access multiple services (e.g., enterprise and consumer). Fortunately, the increasing processing power of mobile devices (including Java and BREW support) and standards efforts (e.g., Wireless Village) tend to favor the local client approach.

  5. Successful IM services will ultimately be based on presence-enabled address books. Address books will automatically show the availability of people, perhaps including their location, and will give users means to define communications preferences, e.g., text while in a meeting, location information only when working, and push-to-talk with family members or select friends.

Table of Contents

Published Q4, 2003. 54 pages. 9 tables & figures.

 

THE FUTURE OF SMS & INSTANT MESSAGING            
INTRODUCTION     
KEY CONCLUSIONS           

INSTANT MESSAGING MARKET TODAY
           
     Overview        
     Enterprise versus Consumer Messaging
     Wireless IM Drivers    
     Wireless IM Ecosystem            
WIRELESS INSTANT MESSAGING ISSUES          
     Lack of Integration      
     Difficult to Use 
     Lack of Interoperability
TECHNOLOGY CONSIDERATIONS          
     Cellular Network Capabilities  
     Wireless LAN Technology        
     Internet Multimedia      
     Presence          
     Location-Based Services          
     Security Considerations            
     Instant Messaging Standards    
          Session Initiation Protocol (SIP)            
          Instant Messaging and Presence Protocol (IMPP)         
          SIP for Instant Messaging and Presence Leveraging Extensions (SIMPLE)       
          Extensible Messaging and Presence Protocol (XMPP) 
          Wireless Village            
          Presence & Availability Management (PAM) Working Group   
THE FUTURE OF MESSAGING      
     Interoperable Services 
     Standards Based          
     Presence-Enabled Address Book         
     Automated Operation Based on Profiles            
     Smart Clients   
THREATS, OPPORTUNITIES AND STRATEGIES 
     Cellular Operator Strategies     
     Service Provider Strategies       
     Device Vendor Strategies         
     Infrastructure Vendor Strategies            
     Software Vendor Strategies     
VENDOR AND OPERATOR PROFILES     
     Cellular Operators        
          AT&T Wireless            
          Cingular Wireless          
          Nextel 
          Sprint PCS      
          T-Mobile          
          Verizon Wireless          
     IM Service Providers   
          AOL   
          ICQ    
          MSN  

          Yahoo 
     Device, Infrastructure and Software Vendors    
          ActiveBuddy, Inc.         
          Agile Mobile    
          Akonix Systems, Inc.   
          All Instant, Inc.
          Antepo
          Apple  
          Applied Messaging Corp.         
          Bantu, Inc.       
          BEA Systems  
          Black Octopus
          Cerulean Studios          
          Comverse (Odigo)       
          Danger, Inc.    
          Dynamicsoft    
          Ecrio Inc.        
          FaceTime Communications      
          Fastmobile       
          Followap          
          General Wireless          
          Good Technology         
          Groove Networks Inc. 
          Hotsip 
          IBM    
          Ikimbo
          Infinite Agent   
          Invertix Corp.  
          Jabber, Inc.     
          MessageVine   
          Microsoft (Enterprise and MSN)          
          MobileIM        
          NMS Communications (MessageMachines)      
          One Voice Technologies           
          OpenWave      
          OZ Communications    
          PeopleSoft      
          Research in Motion      
          Ruksun Software Technologies
          Salesnet            
          Simplewire, Inc.            
          Telecommunication Systems     
          The Messaging Architects         
          Vayusphere     
TABLE OF ACRONYMS     

 

Figures
Figure 1, Forecasted wireless IM users, worldwide (in millions)
Figure 2, Danger Sidekick
Figure 3, Interoperability between IM vendors 
Figure 4, Future IM interoperability
Figure 5, Nokia 6800
 
Tables
Table 1, Wireless IM ecosystem
Table 2, Key attributes of IM standards  
Table 3, Comparison of ‘big three’ public IM service providers
Table 4, Acronyms

 






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