LogicaCMG says that expects formidable messaging growth in North America and points to a number of indications that the region is on the verge of a surge in text messaging volumes. Based on both analyst and its own research, LogicaCMG is predicting that North American text messaging volumes will grow as much as 50 per cent in 2007 - a significant increase over previous years.
The growth will be spurred by a dramatic increase in mobile-to-mobile messaging in addition to applications such as American Idol's audience voting and Starbucks' SMS store finder.
LogicaCMG has seen similar developments in Western Europe and Asia-Pacific during the first years of this millennium. The combination of these factors resulted in an exponential growth in messaging demand and today, messaging revenues for operators in these regions typically run up to 30 per cent of total revenues. LogicaCMG projects that traffic in North America will be boosted even higher than in other parts of the world, because of the sheer size of its population and by better integration of SMS and instant messaging technologies.
According to LogicaCMG, it is critical at this stage of the market that operators maintain an excellent user experience and prevent issues such as service unavailability caused by overload of messaging infrastructure.
"There's real potential that a mobile messaging scenario could exist in North America where a combination of entertainment, business, and consumer-driven SMS traffic spikes so rapidly it overwhelms unprepared networks. This is a pattern LogicaCMG has seen in other parts of the world," said Wayne Irwin, President, LogicaCMG Telecoms, North America. "In order to manage this kind of growth and maintain service levels, operators must scale up messaging capacity effectively and stay ahead of demand. In addition, they must maintain an uncompromised quality of service under extreme traffic peaks that occur during an event such as American Idol. LogicaCMG is the ideal messaging partner for operators in North America with the experience and expertise that we have".
LogicaCMG recently announced the sale of its Telecoms Products business to a consortium of private equity buyers, subject to employee consultation and regulatory approval. Once the transaction closes the Telecoms Products business will trade under the new brand, Acision."
Posted to the site on 28th March 2007
Posted to: www.cellular-news.com/story/22837.php