Is it true? True as concrete. Rock solid. But there hasn’t been a leak from Google as to exactly what it is. Much less what it’s called. It’s purpose is obvious though: be to Android devices what iMessage and BBM are to their respective users.

Unfortunately there’s not much else to go by on this front, except that the usual mobile carriers are in a lot of trouble once Android, RIM, and Apple introduce their own messaging platforms. At least this was the gist of a Wall Street Journal Story that softly ‘broke’ the news of Google’s intentions for messaging.

Android Messaging

In it, reporter Anton Troianovski gives a survey of a business model in decline and cites dipping percentages of SMS use.

To borrow from the article for the sake of context:

“The new messaging tools—answers to Research In Motion Ltd.’s popular BlackBerry Messenger—are a growing threat to a texting business that generated $25 billion in revenue in the U.S. and Canada last year.

Carriers, such as AT&T Inc. and Verizon Wireless, charge fees ranging from 20 cents per text to $20 a month for unlimited texting. The texting business has low costs and high margins. A dollar of texting revenue produces at least 80 cents of profit compared with about 35 cents of profit from $1 in wireless data or voice services, according to analysts at UBS.

Google Messaging

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.”

It’s not all gloom and doom for the likes of AT&T and traditional carriers though. Towards the end of his illuminating piece, Troianovski notes how texting remains viable for its inter-device functionality. Also, in Western Europe texting culture will likely stay in place as big carriers in the Netherlands slightly adjust their subscription to fit the evolving market or go the Deutsche Telekom way and just stick to same old, same old

Read the whole article by opening the source link below. It’s highly recommended.


Via: The Wall Street Journal