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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 7.2 billion mobile messages were sent over U.S. carrier networks during June 2005, more than double the 2.8 billion messages sent during June 2004. Revenue received in the U.S. during the first six (6) months of 2005 from SMS traffic increased 154% to $1.24 billion. Analysts estimate that worldwide 878.3 billion mobile messages will be sent in 2005, rising to 1.5 trillion in 2008.
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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