Cell operators cash in on SMS' popularity

CHANDIGARH: The cellular operators are now reaping the fruits of increasing popularity of SMS.
Spearheaded by increase in SMS volumes, Value Added Services (VAS) have come to account for a sizable chunk of the total revenues of cellular operators.
Sample this. Within a time period of a year and a half, VAS have come to account for 20 per cent of the total revenues of a leading cellular operator.The operator has projected a further growth to around 25 to 30 per cent in a year''s time.
Another operator has reported an increase in SMS traffic by 100 per cent compared to the previous year. The average SMS traffic per day varies from three lakh messages to 12 lakh transactions for different operators.
The popularity of text messaging can be gauged from the SMS volumes during a festival like Diwali. Cellular operators here reported exchange of 25 to 30 lakh messages on the day.
The upsurge in SMS traffic is being attributed to an expanding subscriber base and the increase in maturity levels of cellular usage.
Says an official of a cellular company, "To begin with a subscriber''s usage pattern is dominated by basic voice service. But over a period of time as the customer gets accustomed to the technology, there is an increased emphasis on usage of VAS."
Officials say that globally, the revenues from VAS, that includes roaming services among others, account for as much as 60 per cent of the total revenues.
"It may take some time for operators in India to reach that level. Reaching global standards will depend on how technology savvy we get," says the official.
The increased SMS usage has prompted a cellular operator to set up a separate SMS centre at Mohali for its subscribers in Punjab, Haryana and Himachal Pradesh, who had so far been catered to by the company''s SMS centre in New Delhi. The centre will have a SMS capacity of 160 messages per second.