Clickatell has commended local mobile telephone networks for introducing shortcodes to their premium rated SMS offerings. The move, according to Clickatell`s Gary Cousins, signifies local networks` commitment to mobile data and the introduction of new billing models into the wireless application service provider (WASP) industry.
Following in the footsteps of international mobile networks, Vodacom, MTN and Cell C have released a joint set of shortcodes to be used as premium-rated numbers for use by South African subscribers. Premium-rated SMS billing has been introduced locally by Vodacom and MTN earlier this year, and involves charging a specified rate for SMS messages which are sent to specific numbers.
The introduction of shortcodes, however, will greatly enhance this as an offering for consumers, as it will ensure that short (5-digit) numbers that are common across all three networks, will be used instead of the current, uncommon 10-digit numbers. Cell C has yet to release its premium rated service, but roll-out is planned for before year-end, according to Cell C`s Rod Chapman.
Premium-rated SMS, and especially shortcodes, allow for micro-billing on the back of serving information, content, or even physical goods to consumers, by charging them on their cellphone bills. This has opened up the market to not only cater for existing content delivery, such as logos and ringtones as offered by iTouch and Exact Mobile, but also for new models to be exploited. New models, if one were to again follow in international footsteps, include anything from paying for your parking (this happens in Sweden), pay-for-view Web site access, to micro-purchases of goods and entertainment, dating and competition entries.
"This is in line with international trends," says Cousins, "and Clickatell believes that local service providers have a lot to gain by introducing this model, which is much more flexible than for instance IVR, to consumers. It also introduces for the first time an alternative to credit cards, bank payments and other methods which take time, are sometimes insecure, and may not be suitable for micro-billing in general."
Short codes further have the advantage above standard 10-digit numbers in that the consumer recognises the prefix, as well as the length of the number, as always representing a premium rated number. In this way, exploitation and abuse of the system can be minimised. The fact that it works across all three local networks means that the service or content provider only needs to publish a single, easy to remember number.
Examples of successful models utilising premium-rated SMS can be found aplenty, and it is a matter of weeks, or even days, before the first campaign using a short code will be launched. Watch this space!
Shortcode enquiries can be sent to sales@clickatell.com.
Clickatell can be visited here.
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