SMS—Outgrown It’s Britches


SMS has become an unbridled success in the mobile world. After 15 years of SMS service now we generate  about 8 billion messages daily.

What to do, what to do?

Tekelec, a network gear provider, recently released a report that looks at the futue of SMS. They have assessed a number of different cases;

  1. Optimizing the Existing SMS Infrastructure,
  2. Managing Application-Originated Traffic,
  3. Protecting the SMS Business,
  4. Delivering Mobile Advertising,
  5. Offering SMS Personalized Services,
SMS message volume is forecasted to expand at a compound annual growth rate (CAGR) of 15.6 percent from 2007 to 2011, but SMS revenues are only expected to grow at a CAGR of 5.9 percent over that same period (Frost & Sullivan, 2008). That SMS traffic growth is not translating into comparable revenues is largely due to commoditization.

Tekelec

While no deep analysis they do have something that provides at least some talking points. You need to provide them a minimum of your personal information but you can get the report without any great hassle.

Our issues with SMS

We often find the way carriers look at SMS as laughable (it would be if it didn’t cost). There are a few customer aggravations that exist in our world of SMS;

  1. SMS is the most expensive data rate in the universe
  2. SMS messages are a best effort service and as such there is no way to determine the level of service.
  3. At least 5% of our SMS have service related issues (late delivery, non-delivery)
  4. Carriers make it nearly impossible to do SMS-to-email and the reverse.

What issues do you face with the success of SMS?

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