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Text messaging is dying, report shows

Andrew Couts By

If a recent decline in the number of text messages sent is any indication, the days of over-priced texting plans may soon come to an end.

The gig is up: American cellphone users are quickly abandoning text messaging plans that make wireless companies bundles in profit, reports the Wall Street Journal. Americans sent and received over 1 trillion text messages in the second half of 2010, shows a study from wireless industry watcher CTIA. While that may sound high, it’s actually only an 8.7 percent increase from the six months prior — the lowest jump to date.

Until recently, texting was a must-have feature for many cell phone users. Because of this, wireless companies have been able to charge obscene amounts of money for the service, about $0.20 per message or around $20 per month for unlimited texting plans. According to UBS analysts, this brought wireless companies about $0.80 of profit for ever $1 charged to a consumer. For voice and data services, the profit margin is much lower — about $0.35 per $1. In other words, text messages are a giant rip-off.

News of a slow-down in text messaging comes as wireless customers are offered more and more messaging alternatives. Just this week, Apple announced the introduction of iMessage, a free text and multimedia messaging service that only works between iOS devices, like the iPhone, iPad and iPod touch. Apple reportedly didn’t tell wireless carriers of the iPhone and 3G enabled iPad models (i.e. AT&T and Verizon in the US) about iMessage before the service was publicly announced at the Worldwide Developers Conference on Monday, presumably because they wouldn’t be pleased by the news.

Apple’s iMessage more or less mimics the functionality of the highly popular BlackBerry Messenger service, which has long been a selling point for BlackBerry handsets. And Electronista reports that Google has, at least at one point, developed its own internal messaging service for its Android mobile operating system.

All of this is in addition to a wide range of third-party apps that allow users to send SMS messages, chat over instant messenger services and make calls through VoIP services, like Skype or Google Voice.

So, it seems as though the evidence all points to a world without the current text messaging plans that we have today. Of course, wireless companies aren’t going to give up their lucrative profits easily. But eventually, they may not have a choice.

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Showing 49 comments

  1. Luigi Cirelli at 6:59pm 10th June 2011 it's a slow death, protocol encapsulation dishorder they call it; I've seen it before, they start losing it, bit by bit, and after the 7th is gone, they stop making sense altogether; so sad man
  2. Luigi Cirelli at 6:59pm 10th June 2011 it's a slow death, protocol encapsulation dishorder they call it; I've seen it before, they start losing it, bit by bit, and after the 7th is gone, they stop making sense altogether; so sad man
  3. Luigi Cirelli at 6:59pm 10th June 2011 it's a slow death, protocol encapsulation dishorder they call it; I've seen it before, they start losing it, bit by bit, and after the 7th is gone, they stop making sense altogether; so sad man
  4. BurntHam77 at 11:46am 10th June 2011 I hear you can get email on these smart phone things now.
    1. SheSheWin at 4:19am 13th June 2011 Shhhhhh, that'll be the next thing that they start charging for. Actually, I'm surprised they haven't started charging a monthly fee for each email account. Definitely too much spam out there for them to charge a per email fee.
  5. Dan Gaul at 11:34am 10th June 2011 Good, maybe they will lower their rates to try to spur people to use it more.
  6. Scott Aron Bloom at 5:45pm 10th June 2011 Honestly.. thats why I have a separate gmail account just for that :) However you might want to try whatsapp (no affiliation) it has cross platform texting as well
  7. Scott Aron Bloom at 5:45pm 10th June 2011 Honestly.. thats why I have a separate gmail account just for that :) However you might want to try whatsapp (no affiliation) it has cross platform texting as well
  8. Scott Aron Bloom at 5:45pm 10th June 2011 Honestly.. thats why I have a separate gmail account just for that :) However you might want to try whatsapp (no affiliation) it has cross platform texting as well
  9. Chris Johnson at 3:53pm 10th June 2011 Except that depending on the mail server, email can be extremely slow. When I send messages/files through BBM it's instantaneous.Also, I don't want my inbox full of just random messages like, "Hey, let's grab a drink" or "Can you pick up some milk?"
  10. Chris Johnson at 3:53pm 10th June 2011 Except that depending on the mail server, email can be extremely slow. When I send messages/files through BBM it's instantaneous.Also, I don't want my inbox full of just random messages like, "Hey, let's grab a drink" or "Can you pick up some milk?"
  11. Chris Johnson at 3:53pm 10th June 2011 Except that depending on the mail server, email can be extremely slow. When I send messages/files through BBM it's instantaneous.Also, I don't want my inbox full of just random messages like, "Hey, let's grab a drink" or "Can you pick up some milk?"
  12. Scott Aron Bloom at 3:41pm 10th June 2011 @Chris there is a cross platform program that allows "rich content" messagin.. On all phones + desktop + tablet...Its called email..
  13. Scott Aron Bloom at 3:41pm 10th June 2011 @Chris there is a cross platform program that allows "rich content" messagin.. On all phones + desktop + tablet...Its called email..
  14. Scott Aron Bloom at 3:41pm 10th June 2011 @Chris there is a cross platform program that allows "rich content" messagin.. On all phones + desktop + tablet...Its called email..
  15. Elatia Grimshaw at 3:37pm 10th June 2011 Just because growth has slowed, it doesn't mean texting is dying. Until data can be used reliably for cross platform communication, texting will continue.
  16. Elatia Grimshaw at 3:37pm 10th June 2011 Just because growth has slowed, it doesn't mean texting is dying. Until data can be used reliably for cross platform communication, texting will continue.
  17. Elatia Grimshaw at 3:37pm 10th June 2011 Just because growth has slowed, it doesn't mean texting is dying. Until data can be used reliably for cross platform communication, texting will continue.
  18. Michael Little Bear Neely at 3:33pm 10th June 2011 So....just because text messaging saw a more slight increase in the second half of 2010....its dying?
  19. Michael Little Bear Neely at 3:33pm 10th June 2011 So....just because text messaging saw a more slight increase in the second half of 2010....its dying?
  20. Michael Little Bear Neely at 3:33pm 10th June 2011 So....just because text messaging saw a more slight increase in the second half of 2010....its dying?
  21. Mar Jun Noya Iting at 3:28pm 10th June 2011 i dont think so,.
  22. Mar Jun Noya Iting at 3:28pm 10th June 2011 i dont think so,.
  23. Mar Jun Noya Iting at 3:28pm 10th June 2011 i dont think so,.
  24. Bill Coakley at 3:02pm 10th June 2011 That's plans. More people are using Pay-As-You-Go
  25. Bill Coakley at 3:02pm 10th June 2011 That's plans. More people are using Pay-As-You-Go
  26. Bill Coakley at 3:02pm 10th June 2011 That's plans. More people are using Pay-As-You-Go
  27. Pinky Chow at 2:58pm 10th June 2011 is it only talking about SMS texting
  28. Pinky Chow at 2:58pm 10th June 2011 is it only talking about SMS texting
  29. Pinky Chow at 2:58pm 10th June 2011 is it only talking about SMS texting
  30. Christopher Grant Harvey at 2:58pm 10th June 2011 I think the idea of paying for sms's (limited to 160 characters at 80 centsper message in South Africa) in today's day and age is robbery... So I hope it dies altogether to leave us with a free, open and unified messaging platform.
  31. Christopher Grant Harvey at 2:58pm 10th June 2011 I think the idea of paying for sms's (limited to 160 characters at 80 centsper message in South Africa) in today's day and age is robbery... So I hope it dies altogether to leave us with a free, open and unified messaging platform.
  32. Christopher Grant Harvey at 2:58pm 10th June 2011 I think the idea of paying for sms's (limited to 160 characters at 80 centsper message in South Africa) in today's day and age is robbery... So I hope it dies altogether to leave us with a free, open and unified messaging platform.
  33. Jerry F. Nerviano at 2:58pm 10th June 2011 Define "dying". I don't use it as constantly as I had in the past, but I do still use it regularly. I think the "fad bubble" burst, as it's no longer the "cool new thing", but the utility has in no way diminished. For those who use it properly (quick, non-time-sensitive communications by or to those unable to talk on the phone), it's still indispensable. I even use it for client communications, when appropriate. Until something better comes along, it won't be going anywhere.
  34. Jerry F. Nerviano at 2:58pm 10th June 2011 Define "dying". I don't use it as constantly as I had in the past, but I do still use it regularly. I think the "fad bubble" burst, as it's no longer the "cool new thing", but the utility has in no way diminished. For those who use it properly (quick, non-time-sensitive communications by or to those unable to talk on the phone), it's still indispensable. I even use it for client communications, when appropriate. Until something better comes along, it won't be going anywhere.
  35. Jerry F. Nerviano at 2:58pm 10th June 2011 Define "dying". I don't use it as constantly as I had in the past, but I do still use it regularly. I think the "fad bubble" burst, as it's no longer the "cool new thing", but the utility has in no way diminished. For those who use it properly (quick, non-time-sensitive communications by or to those unable to talk on the phone), it's still indispensable. I even use it for client communications, when appropriate. Until something better comes along, it won't be going anywhere.
  36. Dave Moehle at 2:57pm 10th June 2011 Guess all u that want cross platform, have never heard of Skype or yahoo messenger or google talk. All cross platform and yahoo even handles video chat between phones and/or pc and mac. Android has an app called ebuddy that works with most all IM clients at same time.
  37. Dave Moehle at 2:57pm 10th June 2011 Guess all u that want cross platform, have never heard of Skype or yahoo messenger or google talk. All cross platform and yahoo even handles video chat between phones and/or pc and mac. Android has an app called ebuddy that works with most all IM clients at same time.
  38. Dave Moehle at 2:57pm 10th June 2011 Guess all u that want cross platform, have never heard of Skype or yahoo messenger or google talk. All cross platform and yahoo even handles video chat between phones and/or pc and mac. Android has an app called ebuddy that works with most all IM clients at same time.
  39. Kandie Kochka Humphrey at 2:55pm 10th June 2011 I call the "Bulls--t" card on this one! This isn't going to happen. I alone text more than ever.....and so do my kids!!! Guess you had no real subject to write about! Thank goodness many of US Dont take this serious! Hahaha
  40. Kandie Kochka Humphrey at 2:55pm 10th June 2011 I call the "Bulls--t" card on this one! This isn't going to happen. I alone text more than ever.....and so do my kids!!! Guess you had no real subject to write about! Thank goodness many of US Dont take this serious! Hahaha
  41. Chris Johnson at 2:53pm 10th June 2011 Until there are free messaging programs that can cross platforms, text messaging may not gain any ground but it's not going anywhere.I'd much rather use BBM than a SMS/MMS service but I don't know many people who have Blackberrys. Give me a program that allows me to use a program like BBM with iPhone/Android/Win7 and I'd never send a text again. Of course, if a company were to introduce something that went cross-platform, I could see carriers preventing it from working.
  42. Alejandro Arashi at 2:52pm 10th June 2011 title is misleading and should have read: Texting for a fee plans are dying
  43. Alejandro Arashi at 2:52pm 10th June 2011 title is misleading and should have read: Texting for a fee plans are dying
  44. Alejandro Arashi at 2:52pm 10th June 2011 title is misleading and should have read: Texting for a fee plans are dying
  45. Travis George at 2:51pm 10th June 2011 False. New report shows this report is dumb.
  46. Travis George at 2:51pm 10th June 2011 False. New report shows this report is dumb.
  47. Lee Maxwell at 2:51pm 10th June 2011 Hahahaha... this just shows you can make a report about anything!
  48. Reevah A at 2:46pm 10th June 2011 i sent and received 800 texts (and none spam or whatever) last month alone. it certainly isn't dying and if it is i will revive it single-handedly. ;)
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