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SMS as Business Tool
Mobile
communications accounts for 25 percent of
revenues from telecommunications services
worldwide and Asian subscribers now make up 34
percent of the world total, according to the
International Telecommunication Union. Even more
interesting to telcos in search of new sources
of service revenue, more than 30 billion short
messaging system (SMS) messages are sent per
year.
With
traffic achieving this volume, it is clear that
text messaging is no longer a teen cult--the
business world is adopting SMS as a medium to
deliver a wide range of business-to-business and
business-to-consumer information services.
However, delivering these services across
national network boundaries is a complex
business. An individual company trying to run
its own SMS messaging program is faced with the
logistical problem of co-ordinating with
hundreds of mobile telephone operators across
the globe using different networks, technology
platforms, pricing strategies, billing systems
and languages.
No
shortcuts here
From the mobile network operators' points of
view there is another major issue: existing
international roaming agreements do not allow
the receiving network operator to charge for SMS
messages. When individual users drive the volume
of SMS messages the estimated revenue loss is
low. However, the explosive growth of this
medium and its rapid uptake for commercial
purposes mean that operators are likely to close
access to their networks for messaging until
cross-networking billing processes are in place
or third-party mediators such as MobileWay comes
in.
There
are technology constraints, too. Network
infrastructures may not always be capable of
carrying large, commercial volumes of SMS
message traffic while maintaining quality of
service. Also, with current international
roaming agreements there is no guarantee that
messages sent across network borders will arrive
quickly or even at all.
That's
where access aggregators come into the picture.
They provide the missing link between content
and service providers, corporations and network
operators, overcoming differences in technology,
quality and pricing. This enables any
organization to access its entire wireless
customer base via SMS, regardless of the
recipients' mobile phone network operator or
international location.
Beyond Text Messaging
Access
aggregators offer content providers high-speed
SMS message delivery, guaranteed message receipt
(complete with reporting to the enterprise
customer via remote management tools), capacity
for high-traffic volumes and support for
two-way, interactive services. They also help
content providers to provide value-added
services to mobile users.
These
third parties must operate under a strict
no-spamming policy for all mobile services. The
content provider brands and owns all content;
the aggregator does not promote its own brand to
the end user.
However, third-party mediators are providing
much more than connectivity between mobile
networks. They are also facilitating mobile
commerce by allowing the use of the telephone as
a payment device--not to store sensitive data,
but to transport authentication codes without
security exposures for the user or vendor.
Mobile commerce
For
example, a user wanting to make an online
purchase will provide his handphone number, and
then he will receive an SMS with an
authentication code that he will use to conduct
the transaction. This code is not the credit
card number, but a one-time transaction code
that authorizes the vendor to complete the
transaction and bill the card company or bank.
This
application can also be used in conjunction with
reverse billing--particularly where
micro-payments are involved--so the charge
appears on the user's telephone bill. A voucher
application could also be deployed allowing the
user to buy a movie ticket online, receive a
voucher via SMS, and then display the voucher on
their mobile phone when they show up at the
theatre.
SMS is
not just messaging. Any information that can fit
into 160 bits can be delivered by SMS--a
downloaded ringtone, graphic, voucher, or even a
code to configure a WAP phone. Third-party
mediators do much more than overcome the
technology, language and billing protocol issues
that can divide networks, content providers and
users. This is a new business model; they are
facilitating the distribution of wireless
content and the associated distribution of
money.
Examples of business-to-consumer SMS services
Mobile information provisioning: Can include
general or localized information such as updates
on news headlines, weather, events, sports
results, stock prices, horoscopes, birthdays,
film listings, etc.
Mobile financial services: Any information
useful to bank customers can be provided by SMS,
including the last five transactions, account
balances or overdraft limits. Mobile broking
also provides location-independent, real-time
information about a share price reaching a
particular stop mark.
Mobile security services: A mobile phone
with an integrated SIM card and private key
signature using SIM tool kit client software
becomes a mobile security tool for m-commerce
payments.
Mobile loyalty program: All kinds of
reminders and updates can be sent to customers,
for example confirmation of appointments,
overdue video rentals, updates on air miles
accumulated, etc.
Mobile ringtone and logo services: SMS can
be used to request and receive personalized
ringtones or openings screens.
Examples of
business-to-business SMS services
Mobile supply chain integration: Integration
of the mobile device into the supply chain will
make it possible for a sales representative to
check whether a particular item is in stock,
regardless of his location.
Job
dispatch: Mobile devices are becoming an
integral part of groupware and workflow
applications. For example, mobile data services
can be used to assign new jobs to an employee on
the move or to provide a service technician with
detailed information on a customer's problem.
Corporate employee communications system:
SMS can extend the use of corporate e-mail
systems beyond an employee's desk and computer.
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