Thursday, June 9, 2016

Mobile Voice Faring Better than Text Messaging in Face of OTT Substitution

Almost nothing better illustrates the fundamental change in access provider roles within the communications ecosystem than trends in use of voice and messaging apps and services.

Historically, creation and supply of both voice and messaging was controlled by telcos or mobile service providers. These days, over the top messaging is used by about 55 percent of consumers. In some markets, 47 percent of consumers use OTT messaging apps more than service provider text messaging, a study sponsored by Nokia found.

Some 34 percent of prepaid consumers claimed to use messaging apps more often than traditional phone services, compared to 25 percent of postpaid customers, the study found.

The total number of consumers using voice apps is considerably lower than the use of messaging apps, though. Some 74 percent of consumers globally still rely solely on core operator services for making and receiving calls.



A primary reason app providers including Facebook, Google and Netflix favor ubiquitous, fast and affordable Internet access is that perceptions of cost depress application usage.

A study sponsored by Nokia, for example, found that 16 percent of polled consumers avoided using messaging or voice apps, as well as video streaming,  on their mobiles because of concerns about their data allowances. About 15 percent said they avoided using social apps for the same reasons.


Those concerns also show why Wi-Fi access has become so important, globally.  Some 81 percent of consumers said they switch to Wi-Fi when at home, while 51 percent do so when visiting friends and family at their homes.

About 41 percent of respondents switched to Wi-Fi when at work or school.

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