Report says fixed-line operators should capitalize on SMS

SAN JOSE, Calif.-A new report finds that text messaging could present a significant opportunity for fixed-line telephone providers.

According to Frost & Sullivan, fixed-line operators should emulate mobile service functionality and maximize use of their fixed network assets to compensate for diminishing revenues.

“By generating only a small percentage of this traffic volume, fixed SMS still has the potential to yield substantial revenues for fixed operators,” said Nathan Budd, an industry analyst with Frost & Sullivan. “Just 1 percent of this revenue equates to business volumes of $360 million a year. With controlled investment, fixed operators are in a position to SMS-enable networks and to maximize return on investment.”

However, the firm said that although it is clear that fixed SMS has the potential to act as a complementary technology to the mobile SMS market, it will initially be perceived as a substitute.