The Premium SMS market has developed into a service where the high cost limited the market to the lucrative areas such as gaming, adult chat services and horoscopes. Premium rate SMS regulations (the Mobile Premium Service code) were introduced to address the bill-shock problems produced by these high charges, but in some cases this has only made matters worse.
Only those with high margins to spare can participate in this market and non-subscription information-based premium rate SMS services are at risk of being buried in complicated regulatory requirements and additional carrier requirements, making business cases for all premium rate SMS services less viable. Many of these content providers are overseas-based operations.
The premium rate SMS market is increasingly moving into specific niche market applications, such as the ones mentioned above, as well as competitions and voting where price points, volume and profile ensure that these services remain viable.
Mobile apps, mobile downloads, PSMS, regulations, revenues.