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Submitted by Industry Comment on Tue, 30 May 2006 12:07 |
Industry experts once predicted that MMS would cause SMS to wane and disappear. The opposite occurred: the popularity of text messages is growing. SMS is riding a huge wave of popularity. Global consumption will increase from 760 billion SMS in 2004 to a mind-boggling 2,379 text messages. Dror Bin, Vice President and General Manager, SMS Division, Comverse says that SMS Is About to Become Even More Popular — and More Versatile
SMS is riding a growing wave of popularity. Global consumption will increase from 760 billion in 2004 to a mind-boggling 2,379 billion messages in 2010 — generating a whopping $50 billion in operator revenues.
SMS is one of the most accepted and popular communication channels in the world. Even with the advent of exciting multimedia content, SMS remains irreplaceable, certain to continue to reach new milestones as a global communications phenomenon.
SMS: There's Just No Stopping It
Industry experts once predicted that MMS would cause SMS to wane and disappear. The opposite occurred: the popularity of text messages is growing. SMS and MMS do not actually compete against each other; they have complementary assets and are used differently. Rather than cannibalize each other’s traffic, they provide the user with more choice, convenience and control.
A basic, extremely effective communications channel, SMS pioneered messaging and data usage, creating a new market reality of broad consumer acceptance. It changed behavioral habits and even language usage in peer-to-peer communication. A convenient way to keep in contact, often cheaper than calling, SMS is only a couple of clicks away on the mobile phone, usually more accessible than emailing from a PC.
SMS usage is still increasing, even though new communications technologies such as MMS, mobile IM and mobile email are available to consumers.
Will U Marry Me
Quick, easy, discreet and inexpensive — SMS is something we cannot live without. It has revolutionized our daily lives and continues to drive our communications, increasing personal interaction and making subtle but important changes to society.
In many cases, consumers prefer texting to voice calls – initiating conversations, social engagements and even love interests. People used to say it with flowers, but now text messages also carry the language of love, with many users using SMS to flirt and make first (and subsequent) romantic moves with people they are interested in. Its discreet environment enables people to express themselves more freely and say things via text that they would not necessary say face-to-face.
SMS opens up a new world of personal intimacy, allowing the immediate exchange of greetings wherever and whenever users desire. Operators are astonished anew each year with the quantity of greetings exchanged during special days such as Valentine's Day or New Year. On New Year’s Eve 2005, the UK alone logged a hefty 163 million personal SMS messages sent to friends and family — in a few short hours.
SMS also expands access to service offerings tailored to individual interests, such as entertainment and sport. Operators are bracing themselves for massive peaks in consumer usage during the World Cup 2006 football tournament, with comments on the matches sent to friends, purchases of merchandise, and subscriptions to football SMS alerts. Analysts estimate that SMS revenue will skyrocket during the World Cup.
SMS is now poised to take on new dimensions and capabilities in the realms self-expression and personalization.
Getting Personal — Pleasant Surprises Ahead for SMS Users
SMS technology has surprises in store in the near future.
The mobile phone no longer merely for talking — consumers now view mobile phones as devices for routine “talking and texting" for both personal and business use, and consumers of all ages are eager to use SMS technology more extensively. To meet consumer interest, new personalized SMS services are on the horizon.
Personalization services, whose popularity is demonstrated by ringtones, ringback tones, wallpapers and avatars, enable users to customize their communications in a way that expresses their individuality and emotions. SMS is now acquiring innovative capabilities for personalization, self expression, and enriching communications.
Cross-Pollination Brings SMS Innovation
SMS is being enriched by some recognizable characteristics of email. For example, users will soon be able to customize their SMS communications with personal signatures that are immediately recognizable by the recipient, to automatically duplicate or forward text messages to other people or to their email, and even utilize auto-reply, immediately informing senders of a user’s temporary inability to respond, just like the "out of office" functionality on the PC.
Increased convenience is a major factor behind some new personalized services. SMS Virtual Private Networks (VPNs), for example, will let users exchange text messages using short numbers, such as four-digit extensions, instead of full phone numbers and the exchanged messages will feature the member’s nickname or signature, or even a company brand. Special VPN tariff reductions will further encourage intra-group messaging.
In addition, SMS technology serves as an ideal method for operators and major brands to interact with consumers on a targeted basis, informing segments of new services that are tailored to their everyday needs and interests.
Research highlights the enthusiasm of the youth market for new “sponsored†SMS messages. Sponsored SMS features brand promotion in unutilized space at the end of the SMS text. Sponsorship lowers or eliminates the SMS costs to the user, which is regarded by youth as a highly desirable and worthwhile benefit.
SMS: The Future Beckons
SMS has come a long way in usage since its introduction into the mobile market, and has firmly secured its place as a significant player in communication, information and entertainment. Yet it still has a bright and promising road ahead. By dynamically enriching SMS offerings with new personalized services with greater functionality, operators can create a competitive advantage, increase customer loyalty and satisfaction, and generate greater SMS revenues.
Dror Bin, Vice President and General Manager, SMS Division, Comverse
About Comverse
Comverse, a unit of Comverse Technology, Inc. (NASDAQ: CMVT), is the world’s leading provider of software and systems enabling network-based multimedia enhanced communication and billing services. The company's Total CommunicationSM portfolio includes value-added messaging, personalized data and content-based services, and real-time converged billing solutions.
Over 450 communication and content service providers in more than 125 countries use Comverse products to generate revenues, strengthen customer loyalty and improve operational efficiency. For more information on our products and services, ask for a copy of the Comverse Total Communication Product Portfolio, or contact us at: information@comverse.com and visit our website at: www.comverse.com
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