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SMS Cash Cow Presents Various Regional Opportunities

Date: 7/31/2008 3:35:48 PM

Short Message Service (SMS) will continue to be the highest revenue-generating mobile messaging technology, providing global revenues of $177 billion annually by 2013, according to a recent report by ABI Research.

Regional differences, however, will largely determine the success of attempts to integrate SMS with internet media, and utilize it in various forms of advertising.

“Innovative companies are exploring opportunities for expanding mobile messaging access to Web sites as well as targeting customers with content and ads,” commented ABI principal analyst, Dan Shey. “To be successful with these enhanced services, companies that supply mobile messaging products and services must understand the regional distributions for customer type, payment preferences, message delivery method, and usage.”

Mobile phone users in Europe and North America, for example, have the highest messaging ARPUs and send the most computer-to-mobile text messages, while Asia-Pacific wireless subscribers sign up for the most SMS alert services, and Latin Americans prefer pay-per-use messaging as opposed to fixed-rate SMS bundles.

Over time, these regional differences will likely force messaging suppliers to reevaluate their business models and strategies.

“Device vendors and messaging platform suppliers serving the global market will have to manage across markets where growth is king – and other markets where product differentiation is king,” Shey explained. “This is a great time for smaller companies to develop new products and services individually and in partnerships to serve the niche needs of a region or country.”

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Source: http://www.teleclick.ca/2008/08/sms-cash-cow-presents-various-regional-opportunities/


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