SAN DIEGO, Oct. 15, 2002 (PRIMEZONE) -- According to an A.T. Kearny report published earlier this year, global SMS (Short Message Service) use will climb to more than 200 billion messages sent quarterly by the end of 2002. Yet, while SMS use continues to gain momentum elsewhere, within the U.S. text messaging remains a virtually unknown commodity. Michael Pousti, chairman and chief executive officer of SMS.ac, Inc. (www.sms.ac), said that significant revenues generated from wireless data are literally at the fingertips for domestic mobile carriers.
"Unlike other areas of the world, U.S. consumers are currently exposed to poor consumer experiences where text messaging is concerned," said Pousti. "Delivery reliability, billing confusion and walled garden approaches are irrefutably frustrating consumers and prohibiting adoption here.
"That's the bad news," continued Pousti. "The good news is that consumer appetite for wireless data continues to grow. There is tremendous potential for U.S. growth in this area. For some wireless operators in Europe and Asia, SMS already accounts for nearly 30 percent of total revenues -- and figures like that are attainable domestically. But, U.S. carriers need to huddle and offer consumers attractive and easy-to-understand solutions now in order to reap similar rewards. It doesn't make sense for the carriers to disappoint consumers with what's now being offered and then claim later that there was never any real demand."
Despite announcing network interoperability earlier this year, domestic wireless carriers are not seeing the same adoption of SMS messaging that is occurring throughout Asia, the Pacific Rim and Europe. Nor are U.S. carriers sharing significantly in the more than $5 billion that is currently generated each month from SMS. And the outlook for increased SMS traffic is bright.
Specialist technology and research firm Durlacher projected that an estimated 329 billion text messages will be sent in Q2 2003. Increased SMS adoption in the U.S. would push that figure significantly higher. But, why are U.S. consumers so slow on the SMS uptake? The reason seems to be consumer unrest with related U.S. carriers' products and services.
Even U.S. mobile customers that already send SMS readily admit to continued frustrations over billing and usage. A recent SMS.ac poll that attracted 12,774 respondents from within the U.S. revealed that 69.5% of those surveyed are still not sure whether they pay their carriers to receive text messages, to send, or both. And 57.8% of those polled said that they were required to contact the carrier's customer service in order to text-enable their phones. For a look at today's SMS.ac poll, visit www.sms.ac.
Another SMS.ac poll in August 2002 asked participants if the text messages they send, independent of SMS.ac, reach their destinations. Out of the 17,491 respondents from the U.S. that answered the survey, an astounding 52.2% claim that text messages they send from their mobile devices to destinations within the U.S. arrive less than 50% of the time.
"Would anyone buy a car that worked only half the time? I don't think so," said Pousti. "What is clear from consumer feedback is that interoperability and billing are still issues and that mobile operators need to solve them. The demand is here -- SMS.ac registrations within the U.S. prove that. I think it's time for the industry to release the stranglehold it has on its subscribers. The boat has come in for mobile operators."
SMS.ac (www.sms.ac) is host to the largest mobile community in the world, with more than 6 million registered users in 220 countries as of June 2002.
To learn more about SMS.ac and to discover how this brandable technology can be integrated into your company's existing infrastructure, visit http://www.sms.ac and contact bizdev@sms.ac.
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About SMS.ac
SMS.ac hosts the largest wireless community in the world. With more than 6 million registered members, SMS.ac is a truly global mobile community with connectivity to more than 400 networks in over 170 countries. 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.
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.