Apple execs goof around with iMessage, a way to send text messages for free on iOS devices
Image: Dan Frommer, Business Insider
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Apple announced a bunch of new iPhone features today during its Worldwide Developers Conference keynote. How will they affect wireless carriers?
Apple’s new iMessage service is generally bad news for carriers, as it aims to replace overpriced, extremely high-profit SMS and MMS messaging.
It seems that iMessages will go over the data network, and won’t count toward SMS subscriptions. So iPhone owners who get a lot of mileage out of iMessage will potentially be able to reduce or eliminate their SMS plans, which is bad news for the carriers.
Besides being ridiculously overpriced (compared to its cost and value), text messaging is a huge profit center for the mobile operators. But any mobile exec who doesn’t see the writing on the wall for this one is foolish. The eventual decline of the SMS business seems inevitable.
Apple’s new iCloud and PhotoStream services are generally good news for the carriers, as they will drive mobile data usage and spending.
iCloud, PhotoStream, and other things announced by Apple today that involve syncing documents, music, and photos, will use up a lot of mobile bandwidth.
As carriers discontinue all-you-can-eat mobile data plans, and increasingly charge for data through usage-based plans, iCloud and its related services may encourage people to spend more money than they currently do on mobile data packages. This is good news for carriers.
It seems that Apple’s announcements today even out, or are a modest negative for carriers.
The additional data consumption — and data subscription spending — are good trends for carriers. But this could also lead to more congested data networks and higher costs.
And the eventual decline of SMS revenue and profits, while perhaps inevitable, is not a good thing.
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