|Premium SMS - The value of premium SMS in UK can easily beat the value of Internet advertising - It has already happened in Norway.
Premium SMS is the mobile world's new large source of income. After the market for ordinary SMS messages has boomed mobile operators in the UK and around the world have started introducing a new type of SMS that varies in price compared to what content they are containing.
There are large amounts of money to be made within the area of Premium SMS. The price on these SMS services will most likely vary from 10 pence to £ 2 depending on the content of the SMS. The services that could be offered vary a lot. Among these are: Receiving a daily joke. Housefinder: informs users of which houses and apartments that are for sale in selected areas. Weatherfinder: Offers the user a forecast specific to the area in which the phone is located.
This new type of communication means can also be used when paying for parking, ringing tones etc. The example mentioned above concerning the jokes could be divided into various price categories. For instance: Ordinary joke 10 pence, rude joke 30 pence, a really rude joke 50 pence. This type of services was introduced in Norway in the end of year 1999. The first year, the average Norwegian will be spending £ 6.7. This year they are estimated to be spending £ 10.9 per person.
The value of premium SMS can easily beat the value of Internet advertising - It has already happened in Norway!
The potential market for premium SMS services in Europe is enormous. If we take a look at the leading country within this area, Norway, and do our
calculations based on the Norwegian level for premium SMS messages we can expect to be seeing potential earnings as high as:
Germany £ 442,657,098
Italy £ 407,003,550
UK £ 368,259,265
Spain £ 284,943,199
If the British operators were to gain the same amount of success as their Norwegian counterparts they will during the first two years be able to
generate a business in the amount of:
Year 1 Year 2
Vodafone £ 81,405,000 £ 132,435,000
Orange £ 70,350,000 £ 114,450,000
One2One £ 59,630,000 £ 97,010,000
BT Cellnet £ 73,030,000 £ 118,810,000
Other than being able to generate a large sale for the operators, Premium SMS will also take part in educating the British people about content
costing money on the mobile Internet. It will help making it easier for the operators when they start introducing UMTS. This is supposed to make it
easier for the operators when selling services on the future UMTS net.
The premium SMS services can be compared to a treasury that is wide open and waiting to be found. This is how the potential our report has found (for more information please refer to the attached file). Among other interesting findings are:
- The potential for the premium SMS market in the UK alone is somewhere between £ 265 million and £ 0.85 billion.
- The possibility for higher earnings within the area of premium SMS services worldwide is gigantic.
- New ways of invoicing will help to increase the earnings of the SMS services
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