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P2P MMS set to replace P2P SMS by 2008
Posted: 28-Sep-2004 [Source: Yankee Group]

[Multimedia-based entertainment services set to become the top entertainment service revenue generator in 2005.]

According to the Yankee Group European Wireless/Mobile Data Application Forecast, service revenue generated from peer-to-peer (P2P) multimedia messaging service (MMS) is growing at a CAGR of 82.2%. Based on this growth rate, P2P MMS will replace P2P short messaging service (SMS) as the leading messaging revenue generator by 2008.

Multimedia-based entertainment services also enjoy a high CAGR (96.5%) and will become the top entertainment service revenue generator in 2005, surpassing text-based and browser-based entertainment services. As MMS becomes a core offering from mobile operators, event-driven application-to-person (A2P) MMS alert services will require an efficient infrastructure to guarantee subscriber satisfaction. With A2P MMS's spiky traffic pattern, the existing MMS infrastructure will not be sufficient to handle the traffic. An inadequate MMS infrastructure will not only deliver poor A2P MMS services, but will also jeopardize the quality of P2P MMS services, due to the heavier load created by A2P MMS traffic. Furthermore, A2P MMS requires mobile operators to have an efficient way to manage their business relationships with their content providers.

"The wireless industry is still in the early stages of providing multimedia-based services," says XJ Wang, Yankee Group Wireless/Mobile Technologies senior analyst. "Some mobile network operators (MNOs) are replacing or enhancing their existing MMS infrastructure to meet their P2P MMS traffic growth. This is the right time for MNOs to rethink their MMS infrastructure strategies. We strongly believe there is a need to separate the P2P and A2P MMS traffic to ensure good user experiences. An insufficient MMS infrastructure will hamper services, and early adopters will not hesitate to abandon a poor service. The failure of early WAP service should be a valuable lesson for launching multimedia-based services."

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