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50 Billion Global Text Messages in Q1!
URL(s): www.gsmworld.com
25 May 2001 London, UK: More than 50 Billion SMS (Short Message Service) text messages* were sent over the world's GSMä networks in the first three months of 2001 - reports the GSM Association today. The latest figures confirm sustained global consumer interest in text communications with networks on track to exceed the Association's forecast of 200 billion global messages during 2001.
In just two years, the number of SMS messages sent worldwide has grown from 1 billion messages per month (April 1999) to an average of more than 16 Billion messages per month in Q1 2001, up fivefold on the same period last year, with no sign of slowdown. The GSM Association recently announced that there are now more than 500 million global GSM customers in the world (nearly 70 percent of the world's digital wireless market).
"The continuing growth demonstrates that the popularity of SMS is not down to a passing trend," says Rob Conway, CEO of the GSM Association. "Texting is now achieving mass market status in many markets of the world. Today the visual message is as powerful and popular as voice."
"The continued success of SMS is down to a wide range of factors," adds Conway, "Primarily because it is a universally available service and the ubiquity of GSM handsets on offer globally.
Other key factors in SMS' success include Inter-working between networks and roaming agreements, a host of lifestyle applications coming on stream - where it's clear that 'culture is king' - in addition to competitive pricing - with pre-pay SMS and attractive promotion strategies."
With more content, graphics and multimedia, bigger and better terminal displays, enhancements to security and appropriate privacy, use is expected to accelerate to even greater levels.
"The massive variety and ingenuity of services on offer is also a key propeller of growth," said Rob Conway, "As an example we are witnessing the age of mass consumer marketing campaigns with SMS as the cool response medium."
For targeted campaigns, short messages create a fast, convenient and effective way of getting instant consumer feedback and substantial interest. The coupling of global brands with the use of global media and SMS feedback mechanisms, underline a powerful advantage - and the Association has witnessed a series of excellent examples this year. The alignment of major brands with SMS proves that it is a medium that can generate fantastic interest among key target audiences, very quickly.
Use of SMS as a medium for television audience participation is also gathering pace, following the popularity of interactive TV programmes such as 'Big Brother' and 'Popstars' in 2000. The Association points to several new examples of mass media promotions, television programming and targeted campaigns that continue to boost SMS uptake:
This week, the GSM Association has learned that BBC Television in the UK is to broadcast a primetime live TV show based around the SMS text theme. Celebrating the phenomenon of text messaging in a special night of themed programming 'The Joy of Text' will be broadcast on Saturday 9th June 2001**.
The evening will include a 45minute documentary about the many ways in which text messaging touches people's lives and a live entertainment show with the audience competing in a text messaging quiz. Viewers will be encouraged to participate by sending in text messages to the programme. A text evening on this scale is a first for the UK and a large response is expected.
MTV has also pioneered SMS response techniques - its Videoclash programme was the first live TV show whose content is determined entirely by viewers sending text messages. Viewers vote by text message for the video that they want to see played next on the show. Viewers can also text their opinions or messages to the show which run live on across the TV screen. The show has created an unprecedented success for MTV - generating up to 25,000 text messages a day in one country alone!
"SMS has clearly become an key part of people's lives - from business, personal and in particular entertainment perspectives," says Rob Conway. "With brands such MTV, Coca Cola, Budweiser and others harnessing the potential, it's clear that SMS still has vast opportunities for further growth."
By December 2001, we expect that we will be seeing monthly global SMS volumes approach the 25 billion mark. And the Association's forecast of over 200 Billion messages in total for 2001 looks like being met early. Since the initial launch of text services, SMS has steadily grown before experiencing a huge increase during the last year. This pattern has been reflected around the world, as individual markets achieve mass penetration, fuelled by the popularity of GSM pre-paid subscriptions.
Growth in many European markets continues to soar. In the UK customers generated 3.5 billion text messages in the first four months of 2001, reaching a total 900 million in April alone. Germany remains the strongest market with 6 billion SMS messages in total during the first quarter 2001. Asia Pacific continues to experience rapid growth of SMS, particularly in countries such as China, Philippines, Singapore, Hong Kong and Australia.
A unique example of SMS based innovation in the Philippines is the winner of the GSM Association's Best GSM Wireless Service Award 2001, Smart Communications. The network's Smart Money re-loadable cash card is linked to a GSM phone, offering customers the facility to order and pay for goods using their pre-paid GSM account and Pre-pay top up via SMS.
"Person-to-person messaging still creates high volumes of short duration text message traffic for operators, especially in the key pre-paid markets," says Conway. "The arrival of the GSM family's next phase of evolution in the form of GPRS (General Packet Radio Services) will ensure faster speeds and boost the variety of services available even more significantly."
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