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The rise of IM apps

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Sharath Kumar
New Update

NEW DELHI, INDIA: While the telecom service operators are in jitters, the Web 2.0 giants seem to be grappling with anxiety. While, the former is loosing traditional SMS and MMS to instant messaging (IM) providers, the social platforms such as Facebook and Google, post PRISM, are marred with consumers' apprehensions today.

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With a surge in smartphone penetration and falling data tariffs, the consumers are drifting toward IM services. Even as more advanced versions of mobile messaging apps arrive, the users are apparently looking at pure-play smarter mobile apps, though the ever-changing display resolutions give headache to developers.

The Chinese counterparts loom over the dominance of US based service providers such as WhatsApp. WeChat- a new Facebook-like app and microblogging site Weibo are stealthily getting prominence. Other apps such as Japanese LINE, Cyprus-based Viber and India's Hike and Nimbuzz are in fray to garner impressive market pie.

These companies are, however bound to rapidly innovate themselves to stay afloat. BSB-funded Hike is mulling foray into gaming offering while LINE is eyeing at localized content. WeChat, after making strides in China, is turning toward mobile Internet ecosystem to create compelling value preposition.

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Nimbuzz COO Joby Babu seems quite excited about their active user base. "We have 25 million subscribers in India and adding nearly 5 million users worldwide every month.," he said. The company has also partnered with budget smart-feature phones such as Micromax and Lemon in India.

"LBS is another area at which we are looking as advertising space seems exciting," said Babu. Nimbuzz has also come up with 'virtual gifts' offering in smaller markets such as Nepal and Indonesia, and has conducted more than 1-million transactions so far.

BSB product and strategy head Kavin Bharti Mittal believes that with new user-friendly features, they are taking IM to the next level. The app, launched in December 2012, has over 5 million users today and handles over 1 billion messages a month. The company is expecting to take 10 million users on board by December 2013.

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Unlike many, LINE offers closed and private communication, which is restricted to friends, family and acquaintances. The LINE app facilitates companies to directly interact with consumers and offers sponsored stickers for associate brand products.

Jun Masuda, chief of strategy and marketing at LINE said that they have more than 200 million users in 230 countries and have largest share in Japan, Taiwan and Thailand- surpassing arch rivals- WhatsApp and WeChat. "As of mid-July, 2013, 100 million apps were downloaded on Google Play," he said.

Developed by Tencent, WeChat reached a 100-million userbase benchmark in less than 15 months of its launch. On the other hand, company claims that Facebook took 1600 days and Twitter 1400 days to hit the same touchstone. WeChat aims to integrate more social elements.

A Radicati Group study reveals that at an average, 30 per cent of mobile device users worldwide communicate with one or the other IM service. The finding projects that IM accounts are expected to grow to 3.9 billion by year-end 2016.

 

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