Mobile operators to leverage SMS to expand market

It is official now. The mobile sector has finally found its killer app-SMS. Mobile operators joined hands with Indiatimes to leverage on one of the most popular applications in a bid to sustain their
bottomlines. 

Subscribers can dial into 8888 and access various kinds information related to weather, astrology, sports and politics from the Indiatimes websites. While the content would be free, subscribers would have to pay the normal SMS charges. The second phase of the initiative would see Indiatimes offering services like games, mobile banking, and even dating.

Operators are optimistic about the service since it is SMS-based as opposed to being WAP-based. This means that cost of accessing these services for the subscribers is marginal and does not require any investment by the customer. In comparison, the much-hyped WAP failed to take off because it involved investment by both the operator and subscriber. Subscribers had to buy new handsets while operators had to upgrade their networks the cost of which was passed on to consumers.

Although SMS has taken off in a big way amongst urban subscribers, it still has a long way to go as compared to more matured countries like Philippines. Each day Phillipinos send seven million messages as against a comparable figure in India in an entire month. The revenue generation from SMS stands at around 20 percent in matured economies while it hovers at around five percent in India. 

Speaking about the criticality of content for the success of any SMS-based services, Sarvjit S Dhillion, CEO, Bharti Cellular operations in Delhi said, "As I see it, the success of SMS content would depend on the three factors of ABC. A for Astrology, B for Bollywood and C for Cricket."