As difficult as it might be to believe, it was not that long ago that MySpace dominated the social networking market, and made Facebook look like a pipsqueak. MySpace ruled the roost in such a major way that Rupert Murdoch spent nearly $600-million to make it part of his News Corp. empire. Now, MySpace is evaporating before our eyes while Facebook is battling Google for digital dominance.

…which brings us to Twitter, which dominates the micro-blogging world after vanquishing wannabes such as Jaiku and Pownce. Right now, there is no competition to Twitter – not even a weak and feeble MySpace. Instead, Twitter dominates while micro-blogging startups such as Yammer happily operate in the enterprise market.

Even so, there is growing speculation Twitter is about to face new and serious competition. The biggest threat appears to be Bill Gross’ UberMedia, which already has a strong foothold with a portfolio of Twitter applications.

According to CNN, Gross is considering a new, user-friendly service. The service would differentiate itself based on ease-of-use, and allow users to post messages longer than 140 characters.

As well, a group of developers disgruntled about how Twitter changed its API rules have launched rstatus.us, which is billing itself on two concepts: simplicity and openness.

Meanwhile, Twitter continues to search for a business model and ways to better connect and serve its users – something highlighted by GigaOm recently. When there was no threat of competition, Twitter could afford to struggle, knowing that even if it made mistakes, there was no one to capitalize on them.

But now, the landscape seems to be changing. As a result, Twitter no longer seems as impenetrable. While there’s still not a major rival on the horizon, something seems to be different.

The question is whether a new service could challenge Twitter, let alone do what Facebook did to MySpace. Does Twitter have such a dominant hold on the marketplace that it would be very difficult for a new player to make a serious charge?

My take is “no”.

As much as people love Twitter, social media users are fickle, disloyal at the drop of a hat and always looking for the next new and shiny object. If something better, different and more interesting than Twitter came along, it wouldn’t take much for it to attract a lot of attention.

Don’t get me wrong, I don’t expect the masses to abandon Twitter but if Bill Gross can come up with a new and compelling service, anything could happen. It would be a challenge because the barriers to entry are extremely high. One false move, and you’ve got a Color.com, RockMelt or Flock on your hands.

But if you could hit one out of the park right away, watch out. In theory, all you’d need are breathless reviews from a Guy Kawasaki, Robert Scoble, Mike Arrington and Walter Mossberg for a service to go from zero to 60 miles an hour. Once the cool kids deem something to be wonderful, the masses could jump on board hard and fast.

If I were Twitter and its investors, I’d be nervous. The world is good now but there are competitive rumblings. They may not be loud but they exist – something we haven’t heard in a while.

More: For some other coverage about Twitter, check out this TechCrunch story looking at the-sky-is-falling story that appeared in Fortune Magazine.

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