Does Facebook-WhatsApp deal mean death of SMS?
Washington: Facebook announced its WhatsApp acquisition plans for an eye popping 19 billion dollars and the market went dizzy with the initial sticker stock, however, the biggest question still remains whether mobile messaging eventually bring death to the traditional SMS text messaging.
Although, for Facebook, the deal means more user base, more penetration in emerging markets , but until the deal goes through, SMS stands no chance of vanishing so soon.
According to PC World, texting is simply too ubiquitous, and essentially totally free in modern carrier plans.
In the US, Verizon is one of the few carriers that charges for texts, offering 34.99 dollars/month SMS-only text plan, and a 54.99 dollars/month plan that comes with 2GB of data.
However, overseas, sending a text from the US to other network costs more compared to WhatsApp`s free and unlimited texting offer, anywhere, without advertising.
The report said that chances are that a user`s contacts were also Facebook friends, and the social networking giant would just aim at making its Facebook Home more attractive to compel users to remain within Facebook`s comfy environs.
The acquisition might as well see WhatsApp becoming Facebook version of Skype.
Till the deal draws to a close, and real work begins inside the two companies, it is hard to argue if the multi billion dollar deal would benefit consumers more than either company.
However, it would certainly help in Facebook`s overseas expansion and consolidating its presence on the phone benefits Facebook, the report added.
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