Carriers Sweat as Texting Cools Off

Growth in the volume of text messaging is slowing sharply, just as new threats emerge to that lucrative source of wireless carrier profits. While U.S. cellphone users sent and received more than 1 trillion texts in the second half of 2010, according to CTIA, a wireless industry trade group, that was just an 8.7% increase from the prior six months.

It was the slimmest gain since texting exploded last decade. Text traffic will come under more pressure in the months ahead. This week, Apple showed off an application that will allow iPhone and iPad owners to bypass carriers and send text messages over the Internet to other people with Apple devices. The challenges posed by alternatives to text messaging reflect the broader changes roiling the wireless industry as carriers scramble to adjust to devices like the iPhone and Android handsets, which give cellphone users more flexibility in how they communicate.