Text messages are low hanging fruit for telecoms now that infrastructure cost for this technology has been reduced and profits are rising. But with internet service available on smartphones, profits from text messages are plummeting. Many users prefer to utilize alternative messaging technology on their phone: email, social networking sites, blogs, or instant messaging systems like WhatsUp.
So the big telecom companies (i.e., Telefónica, Vodafone, and Orange) have allied to develop a common system for instant messaging. It is a new business model and more than a mere utility. Is it surprising that the telecoms would want to charge for internet use and do away with flat fees?
