SMS messaging is the most widely used application worldwide for the 5.9 billion mobile subscribers around the world. SMS remains one of the main contributors to the mobile operator’s non-voice revenue stream. However, the mobile industry lost up to $58.4 billion last year due to revenue leakage, which accounted for over 6% of a mobile operator’s total revenues and could grow to 23% by 2016 if not addressed urgently. SMS spam and fraud remain one of the main contributors to this revenue leakage scenario.

Data traffic demand is growing rapidly in the wake of operator strategies to encourage mobile broadband adoption. As a result, the industry is talking about offload as a solution but one which takes many forms, leaving many operators unsure of which path to take. The business case for Wi-Fi is evolving, and not just for data offload but also voice and messaging, offering an opportunity for the deeper integration of Wi-Fi with the operator’s service portfolio. However, what are the issues and friction points that operators might envisage, and how might they be overcome?