Martin O’Donnell pointed out an article on CNET News.com that says Verizon has struck a deal with Telcel to allow text messaging between Latin America and Verizon’s U.S. customers. Telcel is the largest mobile carrier in Latin America. Verizon Wireless now allows text message exchange between its customers and mobile phone users in 28 other countries.
Of greater interest to me, however, is this observation contained in the CNET article:
Despite high growth in volume in the recent years, data services account for only 3 percent of overall revenue of wireless carriers in the United States. This is very low, compared with 10 percent to 12 percent in Asian and European markets.
Mobile phone customers in Europe and Asia have always used text messaging (SMS and MMS) more than Americans and, amazingly, this market force is still visible in carriers’ revenue mixes in each market. The tendency of customers in Europe and Asia to use their handsets for text messaging has made simple wireless internet services (such as WAP) an easier sell in those markets. What will cause North American users to use data services more? Streaming wireless video perhaps?