Texting reaches milestone, with no signs of slowing down

Text messages turned 20 on Monday, and their use may rise 40 percent by 2016, even as mobile-phone owners increasingly rely on Facebook Inc. and Whats­App to communicate.

The first SMS, or short message service, text was sent over Voda­fone Group Plc’s network on Dec. 3, 1992, with the message "Merry Christmas." By 2016, users might send 9.4 trillion texts, generating $127 billion in revenue, up from 6.7 trillion forecast for this year, according to researcher Informa Plc.

SMS became a key source of income for carriers worldwide, initially costing users a few cents per text and eventually becoming wrapped into unlimited voice and data plans. As more customers have switched to smartphones, with better access to the Internet and more applications, people are increasingly using chat features on Facebook and other websites.

Growth will come via emerging markets in Africa, Asia and Latin America where fewer users have smartphones and they rely on SMS for communication as well as services, Informa said.