SMS2.0, the next generation of SMS which stands for short message and search, is expected to increase the average revenue per user of mobile operators by at least 10%
NEW DELHI: SMS2.0, the next generation of SMS which stands for short message and search, is expected to increase the average revenue per user (ARPU) of mobile operators by at least 10%, according to Affle CEO and chairman Anuj Khanna.
UK-headquartered Affle is the mobile media enabler, on which value-add services (VAS) such as SMS2 could be launched. Bharti Airtel and Affle had launched the pilot project of SMS2.0 in India last month.
Besides India, Singapore also rolled out a pilot project for the next-gen SMS recently.
Operators’ ARPUs have been on a decline globally, as well as in India. GSM player Hutch Essar’s (now Vodafone Essar) blended ARPU (post and pre-paid taken together) is Rs 390 per subscriber per month, as of March 31, 2007, down from Rs 414 in the previous quarter.
Market leader Bharti’s ARPU is Rs 406 as of quarter ending March 2007, compared with Rs 427 in the previous quarter. Idea Cellular, another GSM player, also showed a drop in ARPU at Rs 317 during the quarter ending March 2007, compared with Rs 322 in the previous quarter.
CDMA major Reliance Communications, which is the second largest private wireless operator in the country, has however shown an ARPU of Rs 377 as of March 31, 2007, up from Rs 328 in the previous quarter.
SMS2.0 can include colours, emoticons, scheduled SMS and other personalisation options. Through media and content partners, the platform enables free delivery of news headlines, movie trailers and promotions.
Although Khanna is promising a much higher ARPU for mobile operators due to his company’s offering, it may take some time before the new platform’s exposure level improves.
Currently, the SMS2.0 service is available only in Delhi and surrounding regions. Also, it can be accessed only on a select few Nokia handsets at the moment.
However, nationwide launch of SMS2.0 is expected by the end of August, according to Bharti officials. In addition, Affle is in talks with other mobile operators and handset manufacturers to widen the base.
After the commercial launch of SMS2.0 in India and Singapore, Affle is targeting UK, Malaysia and around 10 other Asian countries in the next few years.
According to data available with content providers and mobile players, click-through rates on the SMS2.0 platform are almost 3 to 4 times of what is seen on the Internet.
Also, amongst all the `scrolly impressions’ served, more than 4% have been clicked on pro-actively by the users to read the full screen.
“Out of those seeing the full screen, more than 1.5% people are actually clicking on monetisable options,” as per the industry data.
The size of value added services (VAS) in the mobile industry, which was estimated at about Rs 4,950 crore in March 2007, is set to grow by over 65% and generate business worth Rs 8,200 crore by the end of this financial year, according to estimates made by the Associated Chambers of Commerce & Industry of India (Assocham).
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