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SMS History
SMS was an accidental success that took
nearly everyone in the mobile industry by
surprise. Few people predicted that this hard of
use service would take off. There was hardly any
promotion for or mention of SMS by network
operators until after SMS started to be a
success. SMS advertising went from showing
business people in suits entering text messages
to bright pink and yellow advertisements aimed
at the youth markets that adopted SMS.
SMS was the triumph of the consumer- every
generation needs a technology that it can adopt
as its own to communicate with- and the text
generation took up SMS. Paradoxically, it was
because SMS was so very difficult to use that
the young people said that they were going to
overcome the man machine interface and other
issues and use the service anyway. The fact that
the entry barriers to learning the service were
so high were an advantage because it meant that
parents and teachers and other adult authority
figures were unlikely and unable and unwilling
to be able to use the service.
SMS is one of the few services in consumer
history that has grown very fast without
corresponding decreases in pricing. Usually-
even in the case of voice mobile phones- price
reductions in the cost of the phones and phone
service have led to increases in usage. Whilst
these factors have helped to bring younger
people into the mobile market, the price of SMS
itself stayed steady because the networks were
having trouble handling the volumes of messages
being sent and dared not reduce prices.
A whole new alphabet emerged because SMS
messages took a long time to enter and were
quite abrupt as people attempted to say as much
as possible with as few keystrokes.
Abbreviations such as “C U L8er” for “See you
later” sprung up for timesaving and coolness.
The use of “smileys” to reduce the abruptness of
the medium and to help indicate the mood of the
person in a way that was difficult with just
text became popular.
The introduction of prepay mobile tariffs in
which people could pay for their airtime in
advance and thereby control their mobile phone
expenditure was the catalyst that accelerated
the take up of SMS. The network operators were
unable technically to bill prepay customers for
the SMS they were using because the links
between the prepay platform and the billing
system and the SMS Centers were not in place.
The network operators responded with silence-
the prepay literature did not mention SMS at all
even though the prepay phones supported the
service. One thing that is certain is that in
these days with the Internet revolution to
spread information, the young people will
identify loopholes like this. And they did.
Suddenly, millions more SMS messages were being
sent- with some individual mobile phone
subscriptions accounting for thousands of SMS
per month alone as they set up automated message
generators. Network operators worked with their
platform suppliers to try and sort this out and
implement charging for SMS for prepay customers.
Meanwhile SMS incubated and spread and people
were using it because it cost nothing whereas
carrying out the same transaction using voice
clearly did cost. Eventually after a few months
the network operators finally got their act
together and managed to implement SMS charging
for prepay users- such that they could decrement
the prepay credit by the cost of an SMS message
A mass SMS message distribution campaign was
then typically sent out- such that everyone that
had used SMS received a text message informing
them that from a certain date, SMS would be
charged for. This led to an immediate and
protracted decline in SMS usage to between 25%
and 40% of the pre-charging levels as people
suddenly stopped using SMS or using it as much.
Then something interesting happened- the volume
of SMS messages started gradually increasing
again and soon reached its pre-charging levels.
SMS volume growth has continued its upward
growth ever since, fueled by simple person to
person messaging as people told each other how
they were feeling and what they were doing-
information services and other operator led
initiatives failed to interest the user
community to any degree and never have done.
Whilst it was free, SMS had become an important
part of the way that young people communicated
with each other in their daily life. SMS would
have taken off without this prepay factor
because it was already being used before that
time- but it would never have taken off as
quickly.
SMS growth continued its astonishing growth
during the year 2000 in Europe, a period of time
when the mobile industry was trying to dictate
the deployment of WAP. Despite doing nearly
nothing else of any benefit, WAP did at least
increase the attention that the mobile Internet
received as people tried to work out services
that would appeal to the mobile phone users.
Those companies that survived the WAP debacle
started to realize that it was SMS and not WAP
that had the addressable audience of users and
the clearer business case. Advertising and other
services based on SMS started to be trialed as
companies realized that people who could use SMS
for person to person messaging would also be
able to access SMS based commercial messages.
The next great success for SMS based services
was ringtones. Nokia had started its smart
messaging protocol that was built on binary SMS
rather than the standard text SMS. Nokia had
expected this technology to be used for
information services and over the air service
profiling and it had languished for years, until
suddenly in the year 2000, it found its
application- ringtones that allow users to
change the way their mobile phone rang. Because
the network operators were woefully inadequate
and unable to offer the ringtone suppliers fair
and flexible revenue sharing, the service
providers started using premium rate Interactive
Voice Response (IVR) voice platforms to trigger
the transmission of ringtones. The ringtones
market soon became a billion dollar market- and
few of the network operators even offered
services- this category was dominated by
independent service providers who advertised in
newspapers and magazines.
SMS was the triumph of the consumer- a
grassroots revolution that the mobile industry
had next to nothing to do with and repeatedly
reacted to. This is in stark contrast to the top
down technology and industry led approaches to
other nonvoice services such as WAP. The
industry can learn a lot from SMS as it tries to
create other nonvoice services- it is no
surprise that the only other nonvoice success- i-mode
in Japan was also an unprecedented and
unexpected success. The mobile industry would do
well to realize that success for nonvoice
involves setting the right environment to allow
services to succeed- ensuring everyone
implements the same open standards in the same
ways, putting the right payment and microbilling
technologies in place and recognizing that it
takes a while to build a critical mass of usage.
The mobile industry needs to realize that it can
either delay the mobile Internet revolution by
refusing to cede control to the end user and
application and service development communities-
or this will be taken away from it by the
markets by force. Either way, the nonvoice
revolution will arrive- it is not a question of
whether, just when.
"Mobile" or "Cell"
What is correct: "mobile" phone or "cell"
phone? Same thing. The word cell is short for
cellular and has been used since Bell
Laboratories set up the first wireless
telephony system in 1947. It consisted of a
network of low-powered transmitters, each
placed to cover a small region or cell.
Commercial cell phones were introduced in
Chicago in 1978 and in Europe in 1981. If
you're surprised to learn that mobile
telephony has been around so long, here's
another surprise: Bell Laboratories invented
the videophone in 1927.
Numbers
Most numbers on a phone keypad have letters
assigned to them. For instance, the letters
for the number 2 are a, b and c. But there are
no letters assigned to the numbers 1 and 0.
These numbers remain unassigned because they
are so-called flag numbers, kept for special
purposes such as emergency or operator
services. Previously, Q and Z were not
included on the keypad, meaning that you could
not dial a word such as Quincy. Q is now
assigned to the number 7, and Z to number 9.
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