The difficulty with any new technology or economy are the proliferation of terms and acronyms. The article describes the process of delivering mobile content, charging for it and the common terms used in this process.
It is aimed at anyone creating content, music, video, pictures or games and wants it to be seen, or even bought by a mobile audience. There are three main methods of delivery mobile content – directly over IP (Internet Protocol), through a distributor or via a mobile content delivery platform. Each has it’s own advantages and disadvantages …
Content Directly over IP
There is nothing to stop anyone delivering to content to a mobile phone user by simply using the internet. Create the content, upload it onto a web server, create a WAP site and tell your mobile users the URL.
The advantage is that it is cheap, simple and quick to achieve.
The disadvantage is that it does not protect the content, there is no revenue and most significantly, mobile users rarely type URLs directly into their mobile browser. It also doesn’t take into account the compatibility issues of the many handsets and mobile operating systems.
Mobile Formats
Unlike PCs and the internet, there are many more handsets, operating systems and screen sizes available. When delivering content these need to be taken into account. For pictures, the format is a simple jpg or gif. Most handsets will manage resizing these days, so the format is not a primary issue.
When it comes to audio and video the situation is more complex. Typically video is downloaded in the 3gp format. 3GP stores video streams such as MPEG-4, H.263 or H.264, and audio streams as AMR-NB or AAC-LC formats. 3GP also describes image sizes and bandwidth, so content is correctly sized for mobile display screens.
Music can be delivered as AAC-LC in a 3gp wrapper, however most mobile handsets can manage mp3 and is a more broadly compatible format to use.
Mobile Distributors
The second option for delivering content is via a distributor such as Player X. Unlike a direct IP delivery, the distributor will take care of all the formats, as well as finding portals to sell the content through. Typically these portals are sites run by the operators – such as Vodafone Live! Or T-Zones – offering free and paid content to their users. Whilst a portal may see millions of hits – users typically log on to the mobile web via these portals – there is no assurance of position on the portal. Operators tend to prioritise global events – such as film premiers or corporate tie ins. Other content can be buried a few pages down and may never receive any hits. There is no revenue paid in advance, and apart from the large games manufacturers there are no guarantees of download volumes.
The revenue generated from this is usually split 50:50 with the distributor, so for a £1 download the content owner will see around 20p revenue.
Content Distribution and Management Platform
Increasingly, content providers are seeing the possibilities of Direct to Consumer mobile content (D2C). With the poor reputation and user experience of the operator portals the growth of D2C is inevitable.
The revenue model for D2C is typically using Premium SMS or Reverse charge SMS. The way this works is that the user sends a text as a request from their mobile to a 5 or 6 digit shortcode number and they receive a reply, or billing message, which will deduct a fixed amount from their phone.
3GP – The standard format for mobile video. 3GP stores video streams such as MPEG-4, H.263 or H.264, and audio streams as AMR-NB or AAC-LC formats. 3GP also describes image sizes and bandwidth, so content is correctly sized for mobile display screens.
Aggregator – in the context of SMS and PSMS, an aggregator, such as Mblox, works with the mobile networks to agree shortcodes and bulk SMS routes which are provided to mobile platforms and content providers as single IP connection through their SMS Centre.
Billing Message – see PSMS
Bulk SMS – a common term for text messages bought from aggregators/SMS Centres. These messages are bought in blocks of 1000s or many 1000s at a lower cost than those bought from networks. Bulk SMS is typically used for mobile marketing campaigns and other web-based messaging applications.
Content Platform – or sometimes referred to as a delivery platform, such as immedia24. This is software or a web-based application for managing SMS and content delivery such as handling requests from messages sent from handsets. A platform will also provide reports of messages sent and receiving and revenues earned from PSMS.
D2C – Direct to Consumer
Flat Rate Data - – see Mobile Data Charges
ICSTIS – The premium rate billing regulator, who are now renamed PhonepayPlus. All providers of PSMS must be registered with them as a service provider. They have the power to raise fines for breaches of their regulations, but only against the service provider and not the content provider – hence the service provider for the Richard and Judy Scandal, Eckoh received the fine, not Channel 4 themselves.
IP – Internet Protocol – any data that is sent or received using the internet.
J2ME – Java-based development language used for many mobile applications, especially games
MMS – Multi Media Message Service – with the advent of colour screens and phone cameras, it was developed by mobile networks as a replacement for SMS. MMS allows the user to send and receive pictures, audio and short video content (around 250k files). The cost of MMS combined with limited user need has seen a relatively small take up, with 100 million messages per month being sent in the UK (around 2% of the SMS volumes).
Mobile Data Charges – refers to mobile operator charges for accessing the internet and email. In effect, to download anything from the internet the user is charged for data. This can be as high as £7 per megabyte and is additional to a PSMS charged by the content provider. Many users are not aware of the data charges until they appear on their phone bill. Recent flat rate data charges – around £7.50 per month for 1 – 2 gig of downloads has alleviated this, but mobile users not on a flat rate plan are likely to be put off downloading content due to the high charges.
Mobile Operating Systems – There are a number of mobile operating systems used by handset manufacturers – Symbian, Windows Mobile, Ajax, Linux. There are other systems specific to certain phones such as the Blackberry and the iphone. The battle for the dominant mobile OS is likely to develop in the next 12 months and the main players will probably be Symbian, Windows Mobile and Google’s Android.
Mobile Operators – are the companies that own and operate the mobile infrastructure – in the UK they are Vodafone, T-Mobile, O2, Orange and 3. Operators such as Virgin Mobile lease capacity from the main operators.
Mobile Portal – an entry point into the mobile web. The mobile operators run their own portals, and is typically the first point of call for a mobile user logging on to the internet.
MSISDN – the number of a mobile phone. The MSISDN is carried in all SMS and MMS and offers an ideal way to identify a specific user. It cannot be identified when the mobile user is browsing the internet.
Ofcom – The telecoms and media regulator. Any premium rate issues will be dealt with by PhonepayPlus (ICSTIS), but Ofcom will deal with non-premium issues such as SMS spam. Their site has excellent guidance on acceptable usage.
PSMS – Premium SMS – is a message that is charged to the users phone. The charge is on receipt of a message, sometimes referred to as a reverse billing SMS. In order to comply with the regulations, the user must send a request message to a shortcode (a 5 or 6 digit number).
The price of the PSMS is determined by the shortcode number used for the message. These shortcodes are priced at 10p, 25p, 50p, 75p, £1, £1.50, £3 and £5. Billings can also be multiples of the price eg 2 x £1, where the user will receive 2 messages at £1.
Shortcode – a five or six number code for both receiving SMS from and sending Premium SMS to mobile users. Each shortcode is owned by a service provider who aggregates the number across all of the major networks. Shortcodes are country specific and cannot be sent/received outside the country of origin.
SMS – Short Message Service – an SMS is 160 characters of text and 12 characters of header (such as a reply number). Unlike email, for example, an SMS cannot carry additional header information or picture or video content. There are over 4 billion text messages sent each month in the UK – more messages than voice calls made.
SMSC – SMS Centre or gateway. An SMS centre provides a connection between the mobile networks and the internet. They will typically act as an aggregator by offering a single IP-based connection across all networks. They will also set up and get the agreements for shortcodes across the mobile operators.
Subscription/Recurring Billing – is a revenue option that allows the content provider to accept a single SMS request from a mobile user and continue to send messages monthly, weekly or even daily until an opt out or ‘STOP’ message is received. This was commonly used in the ringtone market boom as a method of maximising revenue. However stricter controls have been put in place, particularly with regard to subscription billing from under 16s.
URL Sending – a common method for delivering content by SMS. The text message will contain a URL link, which, when opened will download the content.
WAP – Wireless Application Protocol – the protocol has been widely available since 2000 and was designed to offer a simplified version of web browsing from mobile phones.
Wap Push – or Wap Push Message is a method of delivering mobile content by SMS. The Wap Push is essentially a text message with a URL to the content and configured as a Service Message. It will prompt the handset user to open the URL or download the content. Due to abuse by unscrupulous companies Wap Push can no longer be used in Premium SMS.
Wireless – it used to be the word my grandparents used for their radio! These days it general refers to wireless computer networks, or WiFi. Confusingly ‘wireless’ tends to be the term used in the states for mobile networks.
WML – Wireless Mark Up Language – similar to HTML, WML was designed to be specifically used on mobile. As mobile handsets have developed WML has become less important for delivering web-type content, with XML, compact HTML and HTML also running on many mobile browsers.
For more info please see : http://www.txt4ever.com/bulksms.php
Thursday, 12 June 2008
Mobile Internet
What is it?
There are three key factors that have seen the mobile internet become a reality:
1. better handsets, screens and memory
2. better data connections through 3g
3. flat rate data-pricing.
Most mobile users in the UK now have both internet browsing and email capabilities on their phones. In fact surveys have shown that 46% of people in the UK have accessed the mobile internet. With such a large number of users there is significant potential for marketing and advertising.
With the advent of internet focussed phones, such as Apple’s iphone, some have argued that the mobile and PC internets are the same, and thus specific strategies or content for each audience is unnecessary.
The other side of this argument is that the mobile internet is significantly different for a number of reasons:
1. handset screen and keyboard size make the functionality and experience different
2. the user experience with mobile means that they will tend to access in the internet in short bursts or ‘snacking’
3. the MNO portals and repurposing of content means that the mobile user will see a different internet to the PC user (see below).
How does it work?
When most users log in to the mobile internet they will be taken to their operator portal, Vodafone Live! or T-Zones. Although many of these portals or ‘walled gardens’ include search tools, they make it difficult for the user to navigate outside of them.
To log on to the mobile internet outside of these walled gardens requires a good technical knowledge of the phone and internet settings.
Significantly, the MNOs repurpose content, ostensibly to improve the speed and compatibility with the mobile device. This can mean that the look and functions of a website are quite different to the PC-based internet. It also means that some sites, depending on the network are blocked entirely.
A few examples
Google have already made significant inroads to providing mobile search and mobile applications, such as email and maps. As yet, the company has not included it’s adwords advertising into these applications but is widely expected to do so at some point.
In the UK, Admob is the largest third party mobile internet advertiser offering a mobile specific pay per clicks service similar to other internet PPC providers.
For more info, please see : http://www.txt4ever.com/bulksms.php
There are three key factors that have seen the mobile internet become a reality:
1. better handsets, screens and memory
2. better data connections through 3g
3. flat rate data-pricing.
Most mobile users in the UK now have both internet browsing and email capabilities on their phones. In fact surveys have shown that 46% of people in the UK have accessed the mobile internet. With such a large number of users there is significant potential for marketing and advertising.
With the advent of internet focussed phones, such as Apple’s iphone, some have argued that the mobile and PC internets are the same, and thus specific strategies or content for each audience is unnecessary.
The other side of this argument is that the mobile internet is significantly different for a number of reasons:
1. handset screen and keyboard size make the functionality and experience different
2. the user experience with mobile means that they will tend to access in the internet in short bursts or ‘snacking’
3. the MNO portals and repurposing of content means that the mobile user will see a different internet to the PC user (see below).
How does it work?
When most users log in to the mobile internet they will be taken to their operator portal, Vodafone Live! or T-Zones. Although many of these portals or ‘walled gardens’ include search tools, they make it difficult for the user to navigate outside of them.
To log on to the mobile internet outside of these walled gardens requires a good technical knowledge of the phone and internet settings.
Significantly, the MNOs repurpose content, ostensibly to improve the speed and compatibility with the mobile device. This can mean that the look and functions of a website are quite different to the PC-based internet. It also means that some sites, depending on the network are blocked entirely.
A few examples
Google have already made significant inroads to providing mobile search and mobile applications, such as email and maps. As yet, the company has not included it’s adwords advertising into these applications but is widely expected to do so at some point.
In the UK, Admob is the largest third party mobile internet advertiser offering a mobile specific pay per clicks service similar to other internet PPC providers.
For more info, please see : http://www.txt4ever.com/bulksms.php
DMA briefing on Mobile Age Verification
Mobile age verification provides controls to prevent minors from receiving ‘over 18’ content on their phone.
Mobile age verification was established on a self-regulatory basis across all UK mobile networks in 2004. The principle of these controls are that mobile users must prove that they are over 18 before they can receive content restricted by the MNOs. For the purposes of this agreement, the definition of over 18 is not specific, but rather defined as ‘consistent with standards used by other media’. The agreement does, however, specify chat rooms as content restricted to 18 years plus.
Shortcodes
The primary focus for age verification has been on the shortcodes, where by 69xxx and 89xxx numbers are restricted to age verified phones. For shortcodes, phones are locked by default and age verification MUST be made before content can be provided.
The process of verification varies between each network, but Orange offer a typical method:
The Orange subscriber sends a text to an adult short code this will go through the automatic Age Verification process. If successful the text will be passed on to the user. If the end user is not age verified then they are advised. They can then send a free SMS to receive message explaining they need to call customer services: Pre-Pay users dial 450, Contract users dial 150.
Proof of age is made using a credit card, where a small sum is deducted and then refunded by the network. This process can usually be done through a phone call, WAP or online.
Mobile Internet
The age verification process for the mobile internet differs from operator to operator, where some restrict sites by default, but others have an optional ‘parental lock’:
All MNOs have content filtering for WAP and mobile internet - the system varies depending on the operator:
-
- Vodafone - all content filtered with extensive controls in place by default
- T-Mobile and Virgin - all content filtered
- O2 - content filtering optional as part of parental controls
- 3 - Walled garden - adult content only available as paid content through their portal
The only publicly issued Code of Practice has been from Orange – see their related document ‘UK Code of Practice’.
For more info please see : http://www.txt4ever.com/bulksms.php
Mobile age verification was established on a self-regulatory basis across all UK mobile networks in 2004. The principle of these controls are that mobile users must prove that they are over 18 before they can receive content restricted by the MNOs. For the purposes of this agreement, the definition of over 18 is not specific, but rather defined as ‘consistent with standards used by other media’. The agreement does, however, specify chat rooms as content restricted to 18 years plus.
Shortcodes
The primary focus for age verification has been on the shortcodes, where by 69xxx and 89xxx numbers are restricted to age verified phones. For shortcodes, phones are locked by default and age verification MUST be made before content can be provided.
The process of verification varies between each network, but Orange offer a typical method:
The Orange subscriber sends a text to an adult short code this will go through the automatic Age Verification process. If successful the text will be passed on to the user. If the end user is not age verified then they are advised. They can then send a free SMS to receive message explaining they need to call customer services: Pre-Pay users dial 450, Contract users dial 150.
Proof of age is made using a credit card, where a small sum is deducted and then refunded by the network. This process can usually be done through a phone call, WAP or online.
Mobile Internet
The age verification process for the mobile internet differs from operator to operator, where some restrict sites by default, but others have an optional ‘parental lock’:
All MNOs have content filtering for WAP and mobile internet - the system varies depending on the operator:
-
- Vodafone - all content filtered with extensive controls in place by default
- T-Mobile and Virgin - all content filtered
- O2 - content filtering optional as part of parental controls
- 3 - Walled garden - adult content only available as paid content through their portal
The only publicly issued Code of Practice has been from Orange – see their related document ‘UK Code of Practice’.
For more info please see : http://www.txt4ever.com/bulksms.php
Java Embedded Applications
What is it?
Java, or J2ME is a format for applications for mobile and PDAs. It provides software that can been added to mobile phones. It has been most widely used for mobile games, but many other applications such as maps, instant messengers, ip-based messaging, gps systems or phone book back-up systems have been developed.
As J2ME is widely available on mobile handsets, it offers the broadest compatibility in a highly fragmented market.
As advertising funded content increases, there will be greater demand to include this into Java applications. At the moment, most of these applications are games, however, recent studies have shown that this tends to focus on the 14-24 age range. In the older age demographic, PDA functions, such as diaries, maps or email are of the greatest interest. However, outside of the games market, there is a reluctance by many users outside of the early adopters to install applications on their mobile phones.
How does it work?
The Jave Platform, Micro Edition (J2ME) was developed by Sun Microsystems as a language and environment to run applications on mobile phones and PDAs. It's programming language is Java, which is widely understood amongst programmers and developers. Although it is more complex to develop than simple Flash-based applications, it’s broad compatibility on mobile handsets makes it an attractive development proposition. As well as the phone-based functions J2ME can also be used to connect through the internet, bluetooth or infrared.
On the downside, as with other mobile content, the many different handsets on the market results in the need to develop many versions of each application. Whilst video and audio may be transcoded for handset optimisation, J2ME applications will usually need to be developed specifically for different ranges of phones.
A few examples
There are many examples where J2ME has been used, from games to PDA style applications. Google, which is heavily involved with mobile apps provides its gmail and maps service through Java applications.
In France, Orange released a series of ad –funded games in 2007, sponsored by brands such as Coca-Cola and Saab.
Elsewhere, brands such as Nokia, McDonald’s, Diadora, Samsung, Adidas and Walt Disney have all sponsored J2ME applications.
For more info please see : http://www.txt4ever.com/bulksms.php
Java, or J2ME is a format for applications for mobile and PDAs. It provides software that can been added to mobile phones. It has been most widely used for mobile games, but many other applications such as maps, instant messengers, ip-based messaging, gps systems or phone book back-up systems have been developed.
As J2ME is widely available on mobile handsets, it offers the broadest compatibility in a highly fragmented market.
As advertising funded content increases, there will be greater demand to include this into Java applications. At the moment, most of these applications are games, however, recent studies have shown that this tends to focus on the 14-24 age range. In the older age demographic, PDA functions, such as diaries, maps or email are of the greatest interest. However, outside of the games market, there is a reluctance by many users outside of the early adopters to install applications on their mobile phones.
How does it work?
The Jave Platform, Micro Edition (J2ME) was developed by Sun Microsystems as a language and environment to run applications on mobile phones and PDAs. It's programming language is Java, which is widely understood amongst programmers and developers. Although it is more complex to develop than simple Flash-based applications, it’s broad compatibility on mobile handsets makes it an attractive development proposition. As well as the phone-based functions J2ME can also be used to connect through the internet, bluetooth or infrared.
On the downside, as with other mobile content, the many different handsets on the market results in the need to develop many versions of each application. Whilst video and audio may be transcoded for handset optimisation, J2ME applications will usually need to be developed specifically for different ranges of phones.
A few examples
There are many examples where J2ME has been used, from games to PDA style applications. Google, which is heavily involved with mobile apps provides its gmail and maps service through Java applications.
In France, Orange released a series of ad –funded games in 2007, sponsored by brands such as Coca-Cola and Saab.
Elsewhere, brands such as Nokia, McDonald’s, Diadora, Samsung, Adidas and Walt Disney have all sponsored J2ME applications.
For more info please see : http://www.txt4ever.com/bulksms.php
Ad Funded Mobile Content and Services
What is it?
Mobile content is defined as interaction on mobile outside of peer to peer activities, mainly voice and SMS. Content includes pictures, audio, video and applications all of which require storage or installation on the mobile handset.
The growth in mobile content has developed from the ring tone and picture background markets of the early millennium, through to a more complex range of content including video, games and applications.
A combination of better handsets, improved data speeds and data pricing means that the level of content downloads are predicted to increase significantly.
With a many recent scandals connected to Premium Rate Messaging, there is a significant public distrust with this billing method for content. This presents and opportunity to brands who are able to fund content and delivery it to the mobile user for free.
Conversely, whilst direct marketing to mobile through is increasing, many users and some brands see this as intrusive. Ad-funded content offers brands a different relationship with the mobile user by giving the benefit of free entertainment or information.
A report by the Mobile Entertainment Forum (MEF) believed that ad-funded mobile entertainment in games and video to generate revenue of £145m in the UK by 2012
How does it work?
As brands are looking for new ways to promote to their markets, mobile content advertising offers them a new channel with which to do this. Within video or gaming content, this is typically through a pre-roll or splash screen advertising. However there is a move towards brands to move beyond a simple sponsorship model by developing their own content. This is done by working with mobile content developers and creatives.
The distribution mechanism is usually via MMS or SMS and WAP push, where a text message is sent with a download link. This is usually triggered by a request to a shortcode (five or six digit number) from the mobile user.
The means of promotion of this content are varied, but are usually through tie-in’s to media campaigns such as television, press or billboard advertising. On the mobile side, the operator portals are currently regarded as the main point for distribution, however as more direct to consumer channels develop they will offer viable means of distributing advertising-led content. With this development there are an increasing number of ad-funded content providers connecting brands to both content and consumers.
From an advertisers point of view the ability of mobile targeted, location and time-sensitive content could make it an attractive proposition.
So far, content funded advertising has been slow to take off and meet the predicted levels, however a number of recent campaigns have shown the possibilities.
One mobile advertising portal surveyed it's user base of 16-25 year olds which showed that nearly 50% would accept ads in return for content.
A few examples
Orange have trialled ad funded content with brands such as Coke and Saab advertising in downloadable games (see J2ME applications).
MySpace in the US have been testing similar advertising funded content.
The 2007 Big Brother switched its mobile video from premium rate payment to advertising funded reported a four-fold increase in the downloads.
The mobile network, 3, launched an ad funded video service in summer 2007 gaining over 1 million subscribers in the first 6 months.
For more info please see : http://www.txt4ever.com/bulksms.php
Mobile content is defined as interaction on mobile outside of peer to peer activities, mainly voice and SMS. Content includes pictures, audio, video and applications all of which require storage or installation on the mobile handset.
The growth in mobile content has developed from the ring tone and picture background markets of the early millennium, through to a more complex range of content including video, games and applications.
A combination of better handsets, improved data speeds and data pricing means that the level of content downloads are predicted to increase significantly.
With a many recent scandals connected to Premium Rate Messaging, there is a significant public distrust with this billing method for content. This presents and opportunity to brands who are able to fund content and delivery it to the mobile user for free.
Conversely, whilst direct marketing to mobile through is increasing, many users and some brands see this as intrusive. Ad-funded content offers brands a different relationship with the mobile user by giving the benefit of free entertainment or information.
A report by the Mobile Entertainment Forum (MEF) believed that ad-funded mobile entertainment in games and video to generate revenue of £145m in the UK by 2012
How does it work?
As brands are looking for new ways to promote to their markets, mobile content advertising offers them a new channel with which to do this. Within video or gaming content, this is typically through a pre-roll or splash screen advertising. However there is a move towards brands to move beyond a simple sponsorship model by developing their own content. This is done by working with mobile content developers and creatives.
The distribution mechanism is usually via MMS or SMS and WAP push, where a text message is sent with a download link. This is usually triggered by a request to a shortcode (five or six digit number) from the mobile user.
The means of promotion of this content are varied, but are usually through tie-in’s to media campaigns such as television, press or billboard advertising. On the mobile side, the operator portals are currently regarded as the main point for distribution, however as more direct to consumer channels develop they will offer viable means of distributing advertising-led content. With this development there are an increasing number of ad-funded content providers connecting brands to both content and consumers.
From an advertisers point of view the ability of mobile targeted, location and time-sensitive content could make it an attractive proposition.
So far, content funded advertising has been slow to take off and meet the predicted levels, however a number of recent campaigns have shown the possibilities.
One mobile advertising portal surveyed it's user base of 16-25 year olds which showed that nearly 50% would accept ads in return for content.
A few examples
Orange have trialled ad funded content with brands such as Coke and Saab advertising in downloadable games (see J2ME applications).
MySpace in the US have been testing similar advertising funded content.
The 2007 Big Brother switched its mobile video from premium rate payment to advertising funded reported a four-fold increase in the downloads.
The mobile network, 3, launched an ad funded video service in summer 2007 gaining over 1 million subscribers in the first 6 months.
For more info please see : http://www.txt4ever.com/bulksms.php
Can Sms become a traded commodity?
Does SMS have the potential to become a traded commodity?
SMS is so ubiquitous these days it’s hard to imagine that the first text message was sent little over fifteen years ago. Since then there has been an explosion in both person to person and business messaging, creating an economy worth billions of pounds. Given both the size of the market and the simplicity of the product, is it possible that SMS could become a traded commodity?
The UK is a nation of ‘texters’. Each month Britons send over 5 billion messages; more text messages than voice calls. It’s popularity globally means that over 500 billion messages are sent each month. The value of the SMS economy was estimated at £1.3 billion in the UK in 2006 and $72.5 billion worldwide in the same year. Until recently the majority of this messaging has been peer to peer – from one mobile handset to another. However over the last five years there has been a massive growth in business SMS, known as ‘bulk SMS’. This has created a commodity and with it, a significant economy. In spite of attempts by mobile network operators to replace SMS with picture, video or internet-based messaging, the simplicity and low cost of sending 160 characters to any GSM phone makes it the killer application. Predictions from analysts such as Gartner, are that it will retain it’s status for the foreseeable future and the bulk SMS economy will grow with it.
The development of business SMS has been on the back of the global explosion in mobile phone use. Many developed nations are seeing mobile saturation at nearly 100% – almost everyone has one. Developing economies are also seeing significant growth. For example in China mobile phone penetration is nearly 38%, making it the world’s largest single user base.
As the mobile phone is the device that most people have with them most of the time, businesses are beginning to realize the potential of a mobile strategy delivered through SMS. This takes two main forms: customer relationship management and marketing. An early adopter of customer relationship SMS are the AA, who are notifying their customers of the expected arrival time for a recovery vehicle. The financial institutions have been slower to move into the sector, however Lloyds Bank’s recent mobile banking application shows the potential in this area.
As traditional media such as television and printing become less effective, brands are looking towards mobile as a new marketing media. SMS campaigns to opted in mobile users present an effective and low-cost alternative to direct mail.
With the development of a bulk SMS economy, the way that messages are sold and resold could make it possible to trade them as a commodity. Rather than sending an SMS through a specific network, such as Vodafone or O2, businesses will typically send the message over the internet through a gateway. These gateways are set up and owned by companies who have aggregated the connections to the various operators, making arrangements with both local and global networks to send text messages. These aggregators sell text messages on in blocks of 1000s at a discounted rate for provision to business users.
In their raw form bulk messages are of little use to an end business user. They simply consist of 160 characters of text, 12 characters to show the sending number and a receipt for delivery. In order to send messages a connection must be made over the internet to the gateway and a system developed to manage this.
There are an increasing number of companies, Ping Corp included, who take the bulk messages and add value by providing systems for sending these messages. These platforms offer a variety of functions such as marketing, appointment functions, ticketing and customer relationship management.
At Ping Corp, we shop around in order to secure the best price for our messages. Thus we make connections to different aggregators both in the UK and overseas. There are different grades of SMS available with slightly different functions, but they are all in essence the same commodity. With this trade there has developed a second tier of aggregators who do not make connections directly to the networks, but buy in bulk SMS services from other companies, repackage them and sell them on. This has created an economy of buying and selling of bulk SMS. As with other commodities there are fluctuations in demand based on peak usage and specific events. There is also a limit on supply, which Is due to network capacity. For example at the busiest time of year for SMS, New Year’s Eve, the limits on capacity cause delivery speeds to mobile users to become very slow.
Is there a strong case to be made for bulk SMS to become a traded commodity? Andrew Bud, Executive Chairman of mBlox, the world’s biggest SMS Gateway, thinks that it is unlikely right now. ‘There are significant differences in quality between SMS supplied by different providers, in terms of global reach and delivery latency.’ In practice however, there are only two quality levels and a number of territories. So in terms of trading, it would simply be a matter of grading the quality of the SMS. Andrew Bud makes a stronger argument when looking at the application of bulk messaging: ‘It is not possible to convert one grade of SMS into another, nor use low grade product for high grade applications and hence does not resemble the various linked markets for crude oil, for example.’ In effect, SMS is a processed good. There is a strong case however, that if electricity can be traded then why not SMS? Certainly the arguments in the early 90s the debates around commoditizing bandwidth could be applied to SMS now.
Bulk messaging could be commoditised if mobile operators or aggregators were to issue futures contracts or pre-book capacity. The greatest barrier to this, though comes from the mobile network operators themselves. As Andrew Bud puts it ‘They have never shown the slightest interest in it, so why bother doing so?’
Ultimately although there are many elements that would allow SMS to be traded, without support of the mobile networks it is unlikely to become a reality.
For more info please visit us at : http://www.txt4ever.com
Useful Links:
Bulk SMS System: http://www.txt4ever.com/bulksms.php
SMS is so ubiquitous these days it’s hard to imagine that the first text message was sent little over fifteen years ago. Since then there has been an explosion in both person to person and business messaging, creating an economy worth billions of pounds. Given both the size of the market and the simplicity of the product, is it possible that SMS could become a traded commodity?
The UK is a nation of ‘texters’. Each month Britons send over 5 billion messages; more text messages than voice calls. It’s popularity globally means that over 500 billion messages are sent each month. The value of the SMS economy was estimated at £1.3 billion in the UK in 2006 and $72.5 billion worldwide in the same year. Until recently the majority of this messaging has been peer to peer – from one mobile handset to another. However over the last five years there has been a massive growth in business SMS, known as ‘bulk SMS’. This has created a commodity and with it, a significant economy. In spite of attempts by mobile network operators to replace SMS with picture, video or internet-based messaging, the simplicity and low cost of sending 160 characters to any GSM phone makes it the killer application. Predictions from analysts such as Gartner, are that it will retain it’s status for the foreseeable future and the bulk SMS economy will grow with it.
The development of business SMS has been on the back of the global explosion in mobile phone use. Many developed nations are seeing mobile saturation at nearly 100% – almost everyone has one. Developing economies are also seeing significant growth. For example in China mobile phone penetration is nearly 38%, making it the world’s largest single user base.
As the mobile phone is the device that most people have with them most of the time, businesses are beginning to realize the potential of a mobile strategy delivered through SMS. This takes two main forms: customer relationship management and marketing. An early adopter of customer relationship SMS are the AA, who are notifying their customers of the expected arrival time for a recovery vehicle. The financial institutions have been slower to move into the sector, however Lloyds Bank’s recent mobile banking application shows the potential in this area.
As traditional media such as television and printing become less effective, brands are looking towards mobile as a new marketing media. SMS campaigns to opted in mobile users present an effective and low-cost alternative to direct mail.
With the development of a bulk SMS economy, the way that messages are sold and resold could make it possible to trade them as a commodity. Rather than sending an SMS through a specific network, such as Vodafone or O2, businesses will typically send the message over the internet through a gateway. These gateways are set up and owned by companies who have aggregated the connections to the various operators, making arrangements with both local and global networks to send text messages. These aggregators sell text messages on in blocks of 1000s at a discounted rate for provision to business users.
In their raw form bulk messages are of little use to an end business user. They simply consist of 160 characters of text, 12 characters to show the sending number and a receipt for delivery. In order to send messages a connection must be made over the internet to the gateway and a system developed to manage this.
There are an increasing number of companies, Ping Corp included, who take the bulk messages and add value by providing systems for sending these messages. These platforms offer a variety of functions such as marketing, appointment functions, ticketing and customer relationship management.
At Ping Corp, we shop around in order to secure the best price for our messages. Thus we make connections to different aggregators both in the UK and overseas. There are different grades of SMS available with slightly different functions, but they are all in essence the same commodity. With this trade there has developed a second tier of aggregators who do not make connections directly to the networks, but buy in bulk SMS services from other companies, repackage them and sell them on. This has created an economy of buying and selling of bulk SMS. As with other commodities there are fluctuations in demand based on peak usage and specific events. There is also a limit on supply, which Is due to network capacity. For example at the busiest time of year for SMS, New Year’s Eve, the limits on capacity cause delivery speeds to mobile users to become very slow.
Is there a strong case to be made for bulk SMS to become a traded commodity? Andrew Bud, Executive Chairman of mBlox, the world’s biggest SMS Gateway, thinks that it is unlikely right now. ‘There are significant differences in quality between SMS supplied by different providers, in terms of global reach and delivery latency.’ In practice however, there are only two quality levels and a number of territories. So in terms of trading, it would simply be a matter of grading the quality of the SMS. Andrew Bud makes a stronger argument when looking at the application of bulk messaging: ‘It is not possible to convert one grade of SMS into another, nor use low grade product for high grade applications and hence does not resemble the various linked markets for crude oil, for example.’ In effect, SMS is a processed good. There is a strong case however, that if electricity can be traded then why not SMS? Certainly the arguments in the early 90s the debates around commoditizing bandwidth could be applied to SMS now.
Bulk messaging could be commoditised if mobile operators or aggregators were to issue futures contracts or pre-book capacity. The greatest barrier to this, though comes from the mobile network operators themselves. As Andrew Bud puts it ‘They have never shown the slightest interest in it, so why bother doing so?’
Ultimately although there are many elements that would allow SMS to be traded, without support of the mobile networks it is unlikely to become a reality.
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Bulk SMS System: http://www.txt4ever.com/bulksms.php
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