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The Common Short Code market in the United States represents an exciting opportunity for anyone, including media, entertainment, consumer packaged goods, advertising, or technology companies to connect nearly 200 million wireless subscribers to their goods and services using interactive applications never before available in the wireless industry. More than 363 billion mobile messages were sent over U.S. carrier networks during 2007 which was more than double the 162 billion messages sent during 2006. This trend is expected to continue and it is estimated that 600 billion messages were sent during 2008. Since the first quarter of 2005, the number of active text users has grown from 25% to 64% in Q1 2007. Analysts estimate that worldwide 3.4 billion mobile messages will have been sent in 2008, rising to 4.9 trillion in 2011.
As message volumes increase so will revenues. Telenor, a European wireless carrier, generated $85 million in revenue from CSCs in less than a year after their introduction. Users sent more than 1 billion messages to short codes, leading to major jumps in SMS traffic.
The revenue opportunities for CSCs can be separated into four different categories: marketing, advertising, entertainment, and commerce (See below). Each has separate objectives, but all depend on instituting a complete solution that incorporates domestic acceptance of CSC, a premium billing capability, and valuable content offerings.
Revenue Opportunities from Common Short Codes
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| Category |
Description |
| Entertainment |
Premium rate messages, subscription service for TV and radio polling, games, chat, dating, quizzes. |
| Marketing |
Premium billed contests, subscription services and promotional dollars for reminders, group functions, incentives and promotions. |
| Advertising |
Drive purchases to targeted markets, create affinity groups and ongoing communications of new products using broadcast (TV, Radio), print (online, newspaper, magazine). |
| Commerce |
Transaction fees for the redemption of coupons, point of sale purchases and micropayments; subscriber rate plans. |
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