SAN DIEGO, April 16, 2002 (PRIMEZONE) -- Recent announcements from some of the largest mobile operators in the U.S. indicate that wireless network interoperability may be at hand -- but, to what extent? SMS.ac (www.sms.ac) chairman and chief executive officer, Michael Pousti, today lauded the looming development of cross-network connectivity as a positive development for the growth and proliferation of SMS/MMS messaging domestically, but added that restricted interoperability and closed billing practices by operators could still derail optimistic industry outlooks for generating new revenue.
"A lack of interoperability among U.S. operators has thus far stagnated the adoption and proliferation of wireless data messaging here," said Pousti. "It is encouraging that operators may be recognizing, albeit painfully slow, that open communities and open communications are essential components to the growth of the wireless data space. We encourage operators to go the distance now and scrap their antiquated billing and pricing models so that developers can bring consumers compelling and relevant content to a global audience. The success of this strategy is evidenced by I-mode, in Japan."
Still, there are concerns as to what network interoperability will ultimately mean to consumers. An April 4 eWeek article penned by Jason Brooks points out: "... the industry seems determined to more completely 'own' its subscribers by confining them to carefully metered, walled gardens. Not only does this approach limit yet-uninvented future revenue streams for carriers, but it also represents a wasteful use of the wireless spectrum resources that the government allots to them."
Each of the major, nationwide wireless operators in the U.S. (consumer-focused) has said that they will allow connectivity across competing networks. Nextel Communications is primarily business-focused and has not yet announced plans for cross-network text messaging compatibility.
Why has the notion of interoperability been rebuffed for so long in the U.S.? Brooks rendered the following perception of domestic network operators: "Wireless carriers remain achingly slow to embrace products and technologies that could boost revenues, but that require carriers to relinquish a measure of control over their subscribers."
"History is in danger of repeating itself," cautioned SMS.ac's Pousti. "The entertainment industry was once absolutely convinced that the VCR would extinguish the movie-going experience. Instead, the VCR helped to escalate the industry to unbelievable heights and new profitability. Likewise, network operators are fearful that wireless data messaging will diminish their user base. In fact, we believe that the unbridled exchange of wireless data will lead to immense profits and global industry growth."
SMS (Short Message Service) use is widespread, particularly throughout Asia and Europe, where a significant portion of the world's SMS is generated each month. Revenue from text messaging currently generates approximately $3 billion in revenue each month.
To learn more about SMS.ac and to discover how this brandable technology can be integrated into your company's existing infrastructure, visit www.sms.ac and contact bizdev@sms.ac.
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About SMS.ac
Through its core MMSbox(tm) technologies, SMS.ac, Inc. enables worldwide wireless interaction between network operators, technology standards, the Internet, consumers and application/content developers. The result is interaction not previously possible amongst a critical mass of developers, consumers and businesses -- igniting the widespread adoption and use of wireless data for network operators.
SMS.ac drives revenues through technology licensing, subscriptions, sponsorships and shared revenue opportunities. SMS.ac's consumer site (www.sms.ac) is an example of the brandable Web interfaces to MMSbox(tm) technologies available for licensing. The community of wireless enthusiasts at SMS.ac represents one of the fastest growing consumer properties on the Internet. SMS.ac and MMSbox are trademarks of SMS.ac, Incorporated. Other trademarks or service marks referenced herein are the property of their respective owners. To view the SMS.ac corporate Web site, visit www.sms.ac/corporate.