News
Issue #2003 - 05 (February 2003)
(Updated Feb. 13, 2003)

MARKET OUTLOOK & TRENDS

SMS Catches On in U.S., says Boston Globe. What does it Mean to the Enterprise? 

About 20 percent of U.S. cell phone users are sending brief text messages to each other for fun and for profit. For many young cell phone users, text messaging or SMS (Short Message Service) is a cool way to communicate.

About 45 percent of young adults 18 to 24 use the text-messaging feature on their phones, according to a study by wireless marketing and consulting firm Telephia, Inc. They use it as a tool for organizing events, playing games or just to stay in touch. For older texters, SMS provides a convenient way to request and receive useful small increments of information, such as a number needed for a report during a meeting. 

Though texting is growing in the U.S., it is still way behind usage rates in Western Europe, where nearly 50 percent of cell phone users text, and in Asia, where usage rates are even higher. A breakthrough for texting in the U.S. occurred when wireless carriers made it possible to exchange the messages across networks. Texting began to take off when users could exchange messages with customers of any major carrier. Most carriers charge about 10 cents to send a text message, and two cents to five cents to receive a message. However, some carriers charge based on usage time.

Now, U.S. carriers are finding ways to promote the service. Verizon Wireless hosts the Web site www.vtext.com for SMS subject interest groups. AT&T Wireless is offering an SMS voting option for viewers of the "American Idol" talent show. Companies also are developing advertising campaigns with texting as a component. Cell phone users sign up to receive the advertising messages. (Source: Boston Globe) - more info 

Source: Boston Globe - Via CTIA News
For more information: http://www.wow-com.com

MobileInfo Comments and Advisory: SMS is surely gaining ground in North America but business journalists can get excited too fast and start applying logarithmic scales to a trend. While young adults will are using SMS now, SMS in the enterprise - instant messaging and business-activity alerts - is definitely a useful application. More and more business applications are incorporating this capability. Application servers like Oracle's 9I can generate these SMS alerts very easily. Enterprises should look into these changes to their operational applications.

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