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SMS is Dead. Here Comes Facebook Chat

Update: You can even send regular SMS with your Iphone for free: http://apple.slashdot.org/apple/08/07/13/1727211.shtml

Nick O’Neill at allfacebook has a great post featuring Facebook adding Chat Functionality to their Iphone Application.

He goes on asking correctly “Does this spell the death of SMS?”, to which I say “YES”. Not today or tomorrow, but with Iphone sales soaring (Apple set their target to 45 million Iphones in 2009),  unlimited data plans becoming affordable both in Europe (starting 30 £ per month) (Switzerland has rates around CHF 50 for 1 GB per month which is more than enough for facebook chat) and in the States (starting with 70$ per month and 130$ for voice and data unlimited) and not to mention the humongous facebook penetration, I can very clearly see this replacing SMS. Why would I pay 15-20 cents for 160 characters if I can do unlimited messaging for free?

On top of that you can now chat realtime between with someone that is on their PC and you have a chat history which SMS also lacks (I don’t think going back and opening your sent items folder is very userfriendly)

Already emails are being sent from millions of blackberry devices around the world every day. Also the adoption of the facebook chat feature requires so little effort. If you have the Iphone and you and your friends use facebook you’re all set.

What about Telcos? They will make money with new data plans which will be much requested, but will it account for the loss in SMS revenue that is about to happen?

In 2005, 16 percent of European Telco’s revenue comes from text messaging.

When are we gonna be able to use skype seamlessly on top of our facebook address book?

I mean for me it’s a no brainer. What do you think, will you use facebook’s new chat feature on your Iphone?

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2 Responses to “SMS is Dead. Here Comes Facebook Chat”

  1. gaiusparx Says:

    It is not so easy to displace sms, which is already part of daily human being (i.e. not computer user)’s lifestyle, especially in europe and asia. If chat is to replace sms, all chat platforms (msn, yahoo, aim, google talk etc) has to be able to talk to each other. Currently chats platforms are too fragmented. I am not sure why Facebook? I never use the chat, and frankly a bit bored with it already.

  2. uglychart.com: a blog about stocks » Blog Archive » links for 2008-07-16 Says:

    [...] Flavio about Business 2.0 » Blog Archive » SMS is Dead. Here Comes Facebook Chat (tags: wireless mobile web) [...]

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