With the release of iOS 5 just two days’ away, carriers around the world are all ready to lose a profit because of one small feature, iMessage. The reason why this is pretty obvious really, as iPhone users will be able to message each other for free without the need to use the more expensive SMS. This is not a new idea, as it is one been in use by BlackBerry phones for sometime with BBM.
SMS has been a very lucrative business for cell phone carriers, and this will be a huge blow because of the install base of the iPhone. AppleInsider says that this is a multi-billion dollar business in the states — so just imagine how much carriers will lose in Europe and other parts of the world? Let’s not feel too sorry for them though, as they have milked enough money from us over the years, so is nice to see that we will be getting more for free.
RIM were happy to know that they were the only phone maker to offer a free message service, but will now feel threatened that Apple is about to tread on their turf. However, the market will soon be flooded with free messages, as Android and Windows Phone users could be getting in on the action as well.
Some experts believe that carrier markup for an SMS is 4,090 percent, which to anyone is inexcusable. How have the FCC and other bodies around the world allowed for such a thing, there would be an outcry if a bank tried to charge us that kind of markup on a loan?
What we like best about iMessage is the fact that you will no longer be limited to 160 characters, cell phone carriers have been served their notice when it comes to SMS — that’s what you get for taking advantage of customers.