Rapid rise of chat apps slims texting cash cow for mobile groups

Chat apps such as WhatsApp and Apple’s iMessage have overtaken the text message as the favorite way to tap out a note to friends, undermining the traditional SMS cash cow for mobile operators.

The data, collected for the Financial Times by telecoms and media consultancy Informa, highlights the rapid rise of a technology that did not exist five years ago but is seen by some as a potential challenger to Facebook’s dominance in social networking. There were more instant messages being sent daily by the end of last year than there were text messages, Informa said. The consultancy expects “over the top” messaging to more than double to 41bn per day this year – more than twice the number of text messages expected to be sent. The transfer in technology has big implications for the telecoms industry, which will generate more than $120 billion from text messages this year, according to Informa.