extremepreneur

SMS is Here To Stay, It May Never Die

SMS still dominates Mobile data revenue, defying all attempts to replace it with something new.

"... And in the master's chambers,
They gathered for the feast
They stab it with their steely knives,
But they just can't kill the beast"

- Lyrics, Hotel California, The Eagles.

Worldwide Revenue for SMS has been predicted to reach $100B for 2007.

"The ITU measured SMS revenues for 2006 to be worth 80 billion dollars (ITU 2007) and this service, proven to be as addictive as cigarette smoking, keeps growing at enormous rates."

- Tomi T Ahonen, Communities Dominate Brands

The 'replacement' for SMS has been long predicted, but SMS keeps on dominating mobile data services.  Even in the USA, always slow to adopt mobile technology, over half of the population now sends text messages.  It's not just teens texting teens (teens prefer texting to talking), services are also growing in use.  For example, 64.5 million text message votes were recorded for the 5th season of American Idol.

So why does a decade old technology continue to dominate mobile data revenues?  Why have the contenders failed?

"The Good is the Enemy of The Better..."

The leading contender to SMS was MMS, otherwise known as Picture Messaging.  It has not reduced the size or growth of SMS.  Part of the reason was MMS's rough start.  Interoperability between different carriers did not happen until recently and doesn't always work even today.  It is nearly impossible to launch a paid service, for example daily horoscopes, across carriers on MMS.

So what is so great about SMS, a technology originally created to notify users that they had voice messages waiting?

1. SMS Messages get through, even if the recipient is busy or have their phone turned off.  This is in contrast to voice, which often results in a game of "phone tag" between callers.

2. SMS Messages don't have to be checked.  In most cases mobile email requires the user to check their emails in a client.  The exceptions (email with notification), DoCoMo's mobile email and Research In Motion, Blackberry have achieved success in their market/demographic segments.

3. SMS Messages can be sent during other activities.  Students often send them during classes, much to the chagrin of teachers everywhere.

AND THE MAIN REASON:

4. SMS WORKS.  It works on almost every handset.  It works even when mobile networks are taxed.  During last weeks San Diego fires I often found that the voice networks were tied up due to traffic.  I was able to notify friends and family that all was well (abet smoky) via SMS.

Other solutions, for example Instant Messaging on Phones, often require users to install software on their handset.  That is something only a segment of the market will put up with.

For many applications the Mobile Web (WAP) is the right choice, but not all phones are setup to access the web ... almost all can receive a SMS text message.  On our Mobile Social Marketplace (MyNuMo) many customers prefer using keyword text messaging to order a ringtone, wallpaper, or video ... over a web (PC) based shopping cart.  It's just simple to text CT1 to 74415 to get a ringtone (in this case, a motorcycle ringtone).  This is what mobile consumers have gotten used to.  In the case of a mobile purchase the SMS transaction eventually ends up pushing a WAP page to the handset, with the advantage being that the customer doesn't have to type in the 'address' of the website.

Maybe this will change.  I am reminded of my first technology job, at a company called Rising Star, how management was convinced that a better protocol than the current Internet and POP/SMTP email would arise and take over.  That was in 1983.

Two new games for the iPhone

These new games feature a improved interface used for aiming.

501 Darts:  Can’t get to the pub to play?  No worries mate, MyNuMo has bought the classic 501 darts game to the iPhone.  Players start with 501 points and throw three darts at a time to get to zero before their opponent beats them to it.  501 Darts features MyNuMo’s new “press to play” sports game system that makes iPhone gaming fast and fun.   

http://mynumo.com/iphone/darts/index.htm

Golf Driving Range: FORE!  MyNuMo brings the classic golf driving range to the iPhone.  Play for accuracy and move onto more difficult levels.  No need to wait for t-times, just fire up the iPhone and swing away. Golf Driving Range features MyNuMo’s new “press to play” sports game system that makes iPhone gaming fast and fun.   

http://mynumo.com/iphone/golf/main.htm