Mobile IM Could Turn On A Third Of Users, At The Right Price – Report

The latest report from Capgemini’s telecommunications, media and entertainment strategy lab reckons 32 percent of U.K. mobile users will be using mobile instant messaging by 2012, sending 15 to 18 messages every day, with mobile IM revenue forecast to reach between EUR 775 million ($1.05 billion) and EUR 800 million ($1.09 billion). In Europe, carriers’ investments in 3G networks have not paid off, and even SMS revenue is expected to fall as prices go down.

But though only 1.2 percent of French and two percent of U.K. mobile users currently do mobile IM, the technology could be a valuable revenue driver, with 63 percent of 15- to 24-year-olds in the U.K. saying they would like to use such services, according to Capgemini’s study, which was written in May but published today. The report blames networks for offering proprietary standards (SMS is so popular because it’s standardized), for setting prices too high and for offering too few features (many people want advanced features like photo sharing). It recommended networks offer unlimited Windows Live Messenger, embedded on handsets, for EUR 5 per month. (Full report here).