MANILA, Philippines -- A local mobile applications developer believes Smart Communications' entry into the mobile instant messaging market indicates the industry's move to providing more data and Internet Protocol (IP)-based services on faster mobile networks.

"They're moving to offering more data services because of the increasing bandwidth of [mobile] networks," said Roger Delgado, vice president for technical operations of local mobile applications developer D3 Systems.

This was Delgado's reaction to the recent unveiling of Smart's new service, dubbed Uzzap, which combines existing short messaging service (SMS) with more Internet-centric instant messaging services that have become a popular messaging platform on the web.

D3 Systems was also among the local companies that developed a mobile application, dubbed Yehba, which offers mobile instant messaging.

Other mobile networks have also ventured into mobile instant messaging. Sun Cellular has been providing similar mobile instant messaging service through its Sun iMessenger, while Globe Telecom has myGlobe IM, which is powered by Chikka.

Chikka is a local company that has been in the business of providing mobile instant messaging for the past eight years. It also powered a similar service for Smart, dubbed iChat Messenger.

"This is welcome news for us because this initiative will increase awareness on mobile instant messaging," Vince Corpus, director for product development in Chikka Asia.

"We would not think that they [Smart] would compete with us directly since Chikka targets web-based users," he added, when asked to react about Smart Uzzap.

Ramon Isberto, Smart public affairs head, agreed.

Isberto said the company's entry in the mobile instant messaging market hints the emergence of more IP-based services in mobile networks.

"With the increasing capabilities of both the handset and the networks to handle IP-based applications, this service [Uzzap] is in line with this trend," Isberto said.

With the coming of next-generation mobile networks like High Speed Downlink Packet Access (HSDPA), Isberto said the mobile "IP highway" is expected to become more "robust." In turn, the local market will see more web-like services entering the mobile market.

Asked whether mobile instant messaging is the next battleground after SMS for telecommunications companies, Isberto said “yes” but pointed out that SMS continues to be a "substantial market" for mobile networks.

To date, the Smart executive said data services, including SMS, represent more than half of the company's revenues.

Mobile instant messaging services however hope to attract next-generation mobile phone users in the country, Isberto said.

"Mobile instant messaging will co-exist with SMS," he said.