SMS was Western Europe’s biggest mobile data services revenue generator in 2007 raking in €16.42 billion, but operators are keen to push MMS and mobile instant messaging, as SMS revenues begin to decline. Research group Frost and Sullivan writes that SMS revenues have already begun falling, and will continue to drop 2.9 percent from 2007-2011, bringing in €14.59 billion in revenue. In comparison, MMS and other data applications generated €7.40 billion in revenues in 2007, but is predicted to grow to €24.28 billion in 2011, with a CAGR of 34.5 percent from 2007-2011. The growth, though, will depend on whether European operators can resolve interconnectivity issues, as well as cutting MMS charges. Mobile IM could be trickier for operators, especially as many see it as cannibalizing SMS revenues. Frost & Sullivan, however, says it has the potential to be the “next major growth opportunity,” if operators can get pricing right. For example, they could bundle IM with SMS, MMS and voice (release).