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Keep up to date with current news and highlights from the SMS industry

Happy Birthday to Esendex

Adam and me back in 2003 ready to conquer the world

Adam and me back in 2003 ready to conquer the world

On Sunday, Esendex was 10 years old – based on the incorporation details of the original business.

Like many cash-strapped companies the early years were particularly tight and there’re many stories from those first years that will be held back for our 10th birthday party in June – plus some that will not even be mentioned then!

Esendex has covered a lot of miles since its beginnings as a few mobiles ziplocked to a PC in Adam’s attic. Our initial job involved sending out the results of a triathlon by SMS (something that’s now become a standard thanks to our bright idea) but other initial work included an “order your bagel by SMS” – it hasn’t caught on!

During the initial year there were a few months when we didn’t raise a single invoice. We now have more than 11,000 customers globally, and employ 45 people with offices in the UK, Australia, Spain and the US and we have direct connections to mobile networks worldwide. Plus we are still working with many of our first customers

We’ve seen a comparable rate of change in the SMS market. When we first started the major objection raised was that “SMS was surely just for kids”. But now SMS is probably the most widely used global communication channel. And whilst the crazy-frog probably didn’t do much for the entire industry, today SMS for business has come of age: recent research by Jupiter reveals that A2P (Application to Person) SMS revenues of $70.1 billion will exceed peer to peer traffic by the year 2016.

Esendex hasn’t been in a stronger position: profitable operations in 5 countries, traction in the US having only launched last year and a range of new projects. It’s hard to predict how we’ll look on our 21st birthday but if we change only half as much as we have over the last decade, exciting times are ahead.

Nearly 70% of U.S. mobile subscribers use their mobile to text

Recent data released from comScore shows that an incredible 234 million Americans aged 13 and older used mobile devices. The study covered the last three months to March 2011 and surveyed more than 30,000 U.S. mobile subscribers.

Some of the more interesting facts were:

  • Smartphone’s share of this market continued to grow. 72.5 million people in the U.S. owned such a device, with Google Android having the largest share of the market at 34.7 per cent.
  • Despite the growth of smartphones, the vast majority of American mobile devices are not smartphones.

The last fact explains why out of all the supplementary uses for a mobile phone, texting is still by far the most popular use for a mobile. 68.6 of U.S. mobile subscribers used text messaging on their mobile devices.

For brands wanting to engage with their customers the total number of U.S. mobile devices represents a huge opportunity. However, when it comes to the execution of any campaign, SMS still the most effective way of reaching the vast majority of consumers.

If you would like to know more about the different ways SMS can be used to engage with your audience, give us a call on 1-866-356-4694.

How will AT&T buyout of T-Mobile affect service delivery in the US?

The recent news about the giant AT&T swallowing up its smaller rival T-Mobile came as surprise to many people. If the regulator approves the deal, AT&T will amass an incredible 130 million subscribers, far more than its nearest rival Verizon Wireless with 94 million customers. Analysts believe that this may cause Verizon to consider acquisitions of its own, which may include Sprint Nextel Corp who are currently number three in the market.

Such a movement could spell bad news for users. With less competition in the market there will be fewer choices for customers and it could lead to higher mobile service rates. As a business SMS service provider, this is clearly a concern to us. Interestingly, AT&T has responded by saying that they believe the deal will lead to greater competition and lower prices. It’s difficult to see how this could be true and even if it was, you would have to question why they would enter into a deal that would result in greater competition for them.

In their defense AT&T cite a government study that reported over the last decade, the average bill for a cellphone had dropped. And this was during a time which saw a number of large telecom mergers.

The winners in this deal are likely to be T-Mobile customers, who may possibly get access to the iPhone. However T-Mobile has always portrayed itself as a low-cost alternative to it competitors and it is hard to see how this will fit with AT&T’s image of the providing highest quality service.