Global text messages to reach 360-B in 2002

The text craze that has taken the country by storm has now spread worldwide. In line with the unprecedented expansion of the global GSM network – with more than 167 million new GSM users added in the last 12 months alone – the staggering growth of Short Messaging Service (SMS) continues.

According to industry figures presented by the GSM Association during its 47th plenary meeting recently, an astounding 75 billion text messages were sent globally in the first quarter of this year, representing an increase of more than 50 percent during the same period a year ago.

The total forecast for 2002 is now placed at 360 billion messages, up from 250 billion in 2001.

Given these astronomical numbers, it is even more amazing that the Philippines still accounts for over 20 percent of the worldwide volume of text messages. But Dennis Mendiola, chief executive officer of Chikka Holdings Ltd., an SMS solutions provider, says the country’s hold on the title "text capital of the world" may soon be passed on to another GSM market, as the rest of the world is now steadily picking up its SMS volume.

"China, for instance, now boasts of more than 160 million customers, easily dwarfing the Philippine’s 12 million GSM market," Mendiola says.

He explains that there are various key factors behind the growth of text messaging worldwide. "With the number of GSM wireless customers fast approaching the three-quarter-billion mark, many applications are now being developed to tap into this huge market."

Mendiola adds that cellular phones are no longer used for just calls these days, as SMS applications have already become a way of life, by providing entertainment, information, business, etc. "The good news for carriers," he says, "is that these value-added services increase the average revenue per user."

Mendiola says that being the "texting capital of the world," the Philippine SMS scene is advanced even when compared to the more developed countries.

"SMS innovations such as mobile auctions, interactive television and even mobile portals were easily adapted here. In fact, the local market has grown not only to accept, but even to expect, the many innovations in SMS models and functions," he says.

Some of the innovations with SMS include Chikka’s own mobile Instant Messenger, which allows subscribers to send text messages to PCs and vice versa. According to Mendiola, the mobile IM has allowed PC users outside the Philippines, who may not have GSM phones, or simply want to take advantage of a free and reliable service, a chance to participate in the Philippines’ great texting revolution. Already, Chikka’s overseas users’ network spans more than 100 countries.

Mendiola also credits the growth of the SMS market to the introduction of technologically advanced cellular phones, which allows more functions and platforms. "Impressive as digital cameras and Internet capabilities may seem, these are only the beginning," he says.

As an SMS solutions provider, Chikka Holdings Ltd. is now poised to take advantage of the market’s growth potential. It is presently the only provider to have clinched long-term, revenue-sharing contracts with the Philippines’ two dominant mobile carriers, Smart and Globe Telecom. The company is now moving to sign similar deals with carriers overseas.

Aside from jumping to other markets, Chikka has also set its sights on expanding its dominance of the local market by offering more innovative services. The company is now developing new applications for emerging mobile data platforms, to allow wholesale marketing and new text messaging contexts like mobile portals such as the recently launched "Catextism."

"Even with 178 countries presently deploying GSM family platforms, and one in nine people on the planet now using SMS, the Philippines is still leading the text revolution with the value-added services being offered here," Mendiola says. "And as such, many countries would like to adapt the business models that we’ve used."