Numbers continue to rise but margins are shrinking and carriers need to look to revenue models

More than two trillion text messages will be sent across the world next year, almost 20 per cent more than in 2007, according to analyst Gartner.

Mobile messaging revenue in major developed markets will also shoot up by 16 per cent to $60bn (£30bn).

But although the numbers continue to rise - 1.9 trillion messages were sent this year, 2.3 trillion will be sent in 2008 – profits margins are dropping as the market saturates. From 2002-2006, revenue growth was 29.8 per cent. But from 2007-2011 it will be just 9.9 per cent, says Gartner.

"In many markets, there has been strong pressure on operator margins for text messaging services, driven by often intense competition between carriers," said Gartner research director Nick Ingelbrecht.

"At the same time, consumers have grown accustomed to large or unlimited bundles as part of their basic cellular service package."

In Europe, the 2007 text total is expected to be 202 billion, rising to 215 billion next year.

"To sustain growth over the next few years, carriers should look to social-networking applications to drive traffic, working where possible with popular established social-networking sites," said Ingelbrecht.