A new research has shown how much of a pain WhatsApp has been to wireless carriers around the world, and with the Facebook buyout, this problem for the carriers might never end. Apparently, WhatsApp has caused carriers to lose a whopping $33 billion in profit, which is due to users moving away from the regular text message system to an app for basic communication.
According to researchers from Ovum Ltd, the $33 billion loss in profit could increase up to $54 billion by the year 2016. This problem could become a huge threat for wireless networks, as texting brings a huge margin of profit into their coffers.
In the thickness of things, international carriers may be feeling the pinch a lot more, since, unlike their U.S. counterparts, these carriers don't usually add unlimited texting to Internet and voice plans.
"The trend has been that messaging is eating away into that revenue, in some countries more than others, and that trend will continue," Chetan Sharma, an independent wireless analyst in Issaquah, Washington, said in an interview. "The impact of free messaging has been felt worldwide. WhatsApp has clearly been the cream of the crop."
Still, contrary to Bloomberg's report, several wireless operators are shrugging off WhatsApp assault by rising in tradings, according to the BusinessWeek. Vodafone rose by 3.8 percent while Verizon Wireless rose by 3.4 percent after Facebook announced it has acquired WhatsApp for $19 billion.
It seems some networks have nothing to worry about.
WhatsApp is killing SMS. This is true, but for some network operators, that isn't a problem. Already, many operators offer plans with unlimited text messaging, yet some users continue to use Internet-based messaging apps on a regular basis. Basically, operators are making money from a service that is arguably on its last legs.
So does WhatsApp have the stuff to shake up the wireless network industry? We believe it does, but it won't have networks running scared when they can simply increase the Internet fee to cover losses. In fact, wireless networks would likely not mind if WhatsApp's user base increases.
According to Facebook CEO, Mark Zuckerberg, WhatsApp could increase it user base to 1 billion in the next few years. Instead of fear, wireless networks could see this an opportunity to increase revenue and growth via new nefarious Internet packages.
