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Fixed Line SMS and the Migration to Multimedia Messaging
Frost & Sullivan, May 2004
The fixed-line telephony market continues to face a number of challenges in determining and realising new sources of growth. Players will chose to respond to these challenges in various ways and several options have been generated to enable fixed operators to reverse some of this decline.
It is the emulation of mobile functionality, however; in particular the development of fixed line messaging, that we explore in the context of this report.
Technically fixed line SMS and MMS work well, but it is the go-to-market approach taken by device manufacturers and operators that will define continued success for fixed SMS and early success in the fixed MMS market. We believe that the realisation of attractive revenues for both services relies on the fixed (and indeed mobile) operators’ ability to define a set of unique service offerings and value propositions for the most appropriate target segments. Furthermore, it is the communication of these offers through the appropriate marketing vehicles that will develop the initial market for the service.
This report has been created to enable an understanding of the drivers behind the deployment of fixed line messaging; the successes and failures of the fixed SMS market; the critical factors in its future success and the potential return this can provide market players.
Critical to the fixed line SMS market is analysis of progress made in the last year, This enables the development of strategies for future success and lessons that can be applied to the potential of fixed MMS service. Strategic implications for market players are addressed, along with action points and recommendations to utilise market potential.
Frost & Sullivan have continued to track the fixed line SMS market since the completion of the initial report in 2003. This report, therefore, sets a context in which the fixed SMS market is addressed and acts as a benchmark from which progress can be tracked and lesson learnt. Frost & Sullivan work closely with operators, platform providers and the F-MMS Forum to generate and align segmentation, value propositions, channel strategy and recommendations for all players involved in the future of the market.
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