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U.S. MMS market to balloon to $900M by 2007

BOSTON-New research shows the market for multimedia messaging services in the United States will grow from just $8 million last year to $900 million by 2007, and the number of active MMS users will increase from several hundred thousand in 2002 to more than 31 million in 2007.

Further, research and consultancy firm The Yankee Group said 20 percent of all wireless users will use MMS by 2007.

However, the MMS opportunity will likely be partly stymied by the current lack of cross-carrier interoperability, a common user experience and a potential degradation of value-based pricing strategies.

As for text messaging, The Yankee Group predicts the number of active SMS users will grow from fewer than 17 million users last year to nearly 70 million users in 2007. SMS revenues will grow more than 800 percent from less than $300 million in 2002 to $2.4 billion in 2007.

The Yankee Group said Sprint PCS has been a strong leader in the MMS space.

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