Internet communications threaten mobile networks

Recent research has found that mobile networks may be losing £8.8bn to social networking applications. Popular messaging apps such as Whatsapp and Blackberry Messenger could be proving very costly to networks.

Ovum, the organisation which conducted the research, monitored how smartphone users used their messaging apps, which also included Facebook Chat. As well as common apps used in the UK, they also studied popular messaging apps from other countries, like MXit, used in South Africa.

Ovum suggested networks work together to counter the threat from internet-based communications. Experts also believe the way networks charge their customers can protect them from potential losses.

Social networking apps use internet connections rather than the more traditional text messaging system which is more expensive. The apps, however, are not free to use. They use mobile data which can cost users money, and therefore provides additional income for networks.

The research suggested networks work with app developers by providing them with information about app users. Mobile networks which sell the handsets can control which apps are loaded onto the handsets before sale.

Another research group, Enders, believe this isn’t the full picture. They claim people use these apps to avoid texting people on international networks, rather than sending an email. Users wouldn’t have spent money on communication regardless of their method of choice.

Some research suggests only 4% of users send messages using Whatsapp in a given month whilst a YouGov poll found that 81% of mobile users still believed text messages were the main method to use for messaging contacts.

James Barford, an analyst for Enders, believes the correct tariffs will keep mobile users and counter the threat from internet-based communications. He added that “People are still using the mobile networks to communicate – and they’re willing to pay for that.”