Latest in Brian acton

Image credit:

WhatsApp founder says he doesn't want to hurt carriers, much

Sharif Sakr
April 4, 2012
Share
Tweet
Share

Sponsored Links

Given how much the world has already noticed that instant messaging can be cheaper than SMS, it's surprising to see the founder of WhatsApp trying to persuade carriers that he's actually doing them a favor. In an interview with Reuters, Brian Acton said that his messaging service is "facilitating a broad movement to data plans," from which carriers "stand to benefit quite substantially." While it's certainly true that smartphones and data plans make nice margins for operators, Acton's thesis also slithers around some slightly inconvenient evidence. According to analysts at Ovum, carriers lost $13.9 billion in SMS revenues last year, and are set to lose another $23 billion this year. All the while, WhatsApp's traffic is growing rapidly, with total messages doubling from one billion in October 2011 to two billion in February. With data costs falling around the world, and with platforms like WhatsApp running on lower-priced handsets (such as those running Nokia S40), it's the consumer, not the carrier, who ought to be charmed.

All products recommended by Engadget are selected by our editorial team, independent of our parent company. Some of our stories include affiliate links. If you buy something through one of these links, we may earn an affiliate commission.
Share
Tweet
Share

Popular on Engadget

NVIDIA apologizes for RTX 3080 order chaos

NVIDIA apologizes for RTX 3080 order chaos

View
The Morning After: PS5 and RTX 3080 rollouts are frustrating for gamers

The Morning After: PS5 and RTX 3080 rollouts are frustrating for gamers

View
TikTok and WeChat will be banned from US app stores on Sunday

TikTok and WeChat will be banned from US app stores on Sunday

View
How and where to pre-order a PlayStation 5

How and where to pre-order a PlayStation 5

View
You’ll need more than $299 to truly enjoy next-gen gaming

You’ll need more than $299 to truly enjoy next-gen gaming

View

From around the web

Page 1Page 1ear iconeye iconFill 23text filevr