SMS in the U.S. - The Right Technology for Cellular Messaging Success?
According to the latest visiongain report " SMS in the U.S. - The Right Technology for Cellular Messaging Success?" text Messaging, or SMS, has been hugely successful in many parts of the world, but not so in the United States. The report question why this is and debates whether SMS ever be as popular in the U.S. market compared with the rest of the world.
PR9.NET July 20, 2005 - San Francisco, CA and London, UK - With 270 billion messages sent globally last year, and the figure continuing to grow year-on-year, this communications tool has revolutionized the way that consumers and businesses across the world interact. Pricing issues and a lack of awareness of the service, are both factors that can be easily overcome by American carriers, however the results show the US market failing to embrace SMS technology as widely as the rest of the world. Speculations of other non-voice cellular communications technology, such as MMS, Mobile Instant Messaging or Mobile E-mail, could be the reason for fueling data-revenue growth in the U.S. instead.
The U.S. market for cellular communications grew 13.5% from 2002 to a value of $88 billion in 2003 and the market for wireless service in the U.S. is extremely concentrated with the top six companies sharing more than 70% of the total market. As of second quarter of 2004 the number of U.S. wireless subscribers was 163.5 million, up from slightly under 154 million at the close of 2003. The top-tier national carriers are no longer adding subscribers at the sustained rates of the past, and other factors such as ARPU, CPGA, and churn are becoming a more critical basis upon which to assess their relative strengths, weaknesses, challenges, and opportunities.
In the United States, more than 33% of mobile users are actively using text messaging- a total of 38 million. As of first quarter of 2004, mobile subscribers in Western Europe reached 332 million, for a penetration rate of 85%. Fifty million of these subscribers live in the United Kingdom, and 73% of UK subscribers use text messaging. As in continental Europe, text messaging in the UK is appealing to mobile users of all incomes and education levels. However in America texting is biased to the young - 57% of SMS users (of the 53% of mobile owners) are within the 18-25 year old age bracket.
By studying trends and business models from Europe and Asia, and the SMS strategies and solutions of the major U.S. carriers this report provides recommendations and forecasts to help companies understand the market potential of SMS, and other non-voice cellular communications technologies in the U.S. The studies of the psychology of both the European and American consumer in order to offer an understanding of what action needs to be taken to realize the market opportunities in the U.S.
The report "SMS in the U.S. - The Right Technology for Cellular Messaging Success?" investigates the American market, and explains why SMS has not reached European levels of usage. The report also details what work must be completed to tap into this vital non-voice revenue potential, and where MMS, mobile IM and E-mail will be positioned in the market over the coming years.
There are extensive examples across the globe of how the SMS market has exploded into a wealth of instant communications situations, thereby vastly improving the quality, interactivity and cost of advertising, media, and business, and at the same time generating vital revenues across the wireless industry. Globally, consumers and businesses have applied SMS to their daily business applications and have received startling results. Visiongain believes that currently 270 billion messages are sent globally each year, and growth in many European markets continues to soar.
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