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SMS services to deliver huge market potential

CEDAR KNOLLS, N.J.—Two new studies show a huge market potential around the world for messaging services, and, according to Probe Research, U.S. wireless carriers are missing out.

“U.S. carriers could be leaving as much as $6 billion on the table each year by neglecting short message service,” said David Chamberlain, service director for Probe Research’s wireless Internet services. “In Europe and the U.K., SMS has achieved more traffic, users and revenues than any of the current-generation WAP-based offerings.”

Chamberlain said SMS is massively popular in Europe because of prepaid tariffs, active marketing and network interoperability, which are moves U.S. carriers haven’t yet taken.

“The success of SMS in Europe demonstrates the potential for useful, narrowband wireless messaging,” he said.

Another study by HPI Research Group shows that the potential for multimedia messaging—the combination of text, pictures and sounds—is equally as compelling. According to the study, there is a “very buoyant and fertile market in which to launch new messaging services.”

The HPI study was commissioned by Nokia Corp., which offers next-generation multimedia messaging products.

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