NEC announced that it has launched a next generation instant messaging solution for mobile phones, dubbed "IP Messaging".

The NEC solution enables the service to interwork with the various existing messaging types (SMS, MMS and mobile IM) and works with the mobile operators' existing messaging infrastructure as well as the messaging system of other licensed operators, according to NEC.

SMS is one of the most successful mainstream mobile services, second only to voice, growing both in terms of usage and reach. However price competition and the bundling of services are driving down revenues generated from peer-to-peer SMS. With MMS generally failing to plug the mobile data revenue gap, mobile operators are switching their attention to Mobile Instant Messaging (IM) to drive up their mobile data revenue. Insatnt Messaging (IM) has been highly successful in the internet world, and is now - through the attentions of a number of key Internet players and the GSMA - it comes into the mobile arena.

NEC will showcase its IP Messaging concept at 3GSM 2007 in Barcelona.