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Popularity
Short message services are developing very rapidly throughout the world. In 2000, just 17 billion SMS messages were sent; in 2001, the number was up to 250 billion, and 500 billion SMS messages in 2004. At an average cost of USD 0.10 per message, this generates revenues in excess of $50 billion for mobile telephone operators and represents close to 100 text messages for every person in the world.
SMS is particularly popular in Europe, Asia (excluding Japan; see below), Australia and New Zealand. Popularity has grown to a sufficient extent that the term texting (used as a verb meaning the act of mobile phone users sending short messages back and forth) has entered the common lexicon.
In China, SMS is very popular, and has brought service providers significant profit (18 billion short messages were sent in 2001). It is a very influential and powerful tool in the Philippines, where the average user sends 10-12 text messages a day . The Philippines alone sends on the average 400 million text messages a day or approximately 142 billion text messages sent a year, more than the annual average SMS volume of the countries in Europe, and even China and India. SMS is hugely popular in India, where youngsters often exchange lots of text messages, and companies provide alerts, infotainment, news, cricket scores update, railway/airline booking, mobile billing, and banking services on SMS.
In 2001, text messaging played an important role in deposing former Philippine president Joseph Estrada.
Short messages are particularly popular amongst young urbanites. In many markets, the service is comparatively cheap. For example, in Australia a message typically costs between AUD 0.20 and AUD 0.25 to send (some pre-paid services charge AUD 0.01 between their own phones), compared with a voice call, which costs somewhere between AUD 0.40 and AUD 2.00 per minute (commonly charged in half-minute blocks). Despite the low cost to the consumer, the service is enormously profitable to the service providers. At a typical length of only 190 bytes (incl. protocol overhead), more than 350 of these messages per minute can be transmitted at the same data rate as a usual voice call (9 kbit/s).
Mobile Service Providers in New Zealand, such as Vodafone and Boost Mobile, provide up to 2000 SMS messages for NZ$10 per month. Users on these plans send on average 1500 SMS messages every month.
Text messaging has become so popular that advertising agencies and advertisers are now jumping into the text message business. Services that provide bulk text message sending are also becoming a popular way for clubs, associations, and advertisers to quickly reach a group of opt-in subscribers. This advertising has proven to be extremely effective, but some insiders worry that advertisers may abuse the power of mobile marketing and it will someday be considered spam.
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