Probably no single communications method in recent history has had a bigger impact on society than the cellphone and SMS. The unprecedented growth in the world and South African cellphone industry paved the way for mobile data usage as means of communication in areas such as social, marketing, emergency services and recently business communications tool.
In November 2001, former CEO of MTN, Paul Edwards said the expected number of cellphone users on the African continent was 30 million by the end of 2001. Two years later, in February 2003, there were already 13 million cellphone users in SA alone.
In March 2000, South African cellphone users sent 15 million text messages during the month - compared to the 20 million text messages sent by the entire North American continent. Special days like Christmas, New Year`s Day and Valentine`s Day tend to generate significant SMS traffic. In May 2000, Vodacom`s 3.2 million users sent 630 000 SMS messages on Mother`s Day. The newcomer on the SA cellular market, Cell C, delivered in excess of 3.4 million SMS messages on Christmas Day 2002. The GSM Association predicted in 2000 that by the end of 2002, 10 billion messages per month would be sent worldwide.
In February 2003, South Africans were sending 250 million SMS messages per month on the Vodacom network alone.
A new business communication tool
Besides being a personal means of communication, the business and commercial use of SMS soon became apparent. MTN`s Edwards said in 2001 that the phenomenal increase in SMS was significant in the sense that it was a precursor to full data use.
It was soon clear that the commercial applications for SMS technology were almost unlimited. The GSM network has provided for a wireless communication network with an extensive coverage area. Piggybacking on the infrastructure provided for by the cellular industry and volumes generated by consumers and voice calls, data carriers can efficiently and cost-effectively start rolling out commercial data communications over this network. This can be seen in the use of SMS in vehicle tracking, vehicle fleet management, security alarms, surveillance and remote meter reading.
Service providers and third party vendors have developed various applications currently being used by retailers, electricity providers, airlines, medical aid schemes, event organisers, relationship marketers, etc, to facilitate business processes.
But is it legal?
But is it legal to conduct financial transactions electronically by SMS or to subject unsuspecting consumers to unwanted marketing?
According to legal expert Michael Silber, the Electronic Communications and Transactions (ECT) Act of 2002 was tabled to facilitate and regulate electronic transactions and communications and to prevent the abuse of information services. The Act defines data as `electronic representations of information in any form` and data message as `data generated, sent, received or stored by electronic means and includes (a) voice, where the voice is used in an automated transaction; and (b) a stored record`. This means that SMS messages are data messages in terms of the ECT Act and can validly be used in transactions.
In addition, any requirement in law that a document must be in writing, is met if the document or information is in the form of a data message and is accessible in a manner that is usable for subsequent reference (ECT Act of 2002; Section 12). An agreement based on data messages is therefore considered to be valid and acknowledgement of receipt of a data message is not necessary to give legal effect to the message.
The ECT Act is therefore aimed at enabling and facilitating the rollout of true e-commerce transactions, in a technology neutral environment. The commercial uses of SMS technology, previously limited by legal constraints, is now becoming a reality and will become a part of commercial life in future.
The provisions of the ECT Act, relating to writing, data retention, originals and the like are broadly drafted. Interpretation of the Act will become clearer once tested by the South African judicial system.
A further aim of the ECT Act is also to protect consumers from unscrupulous merchants using the electronic medium to hide or disguise their identity, as well as unsolicited goods, services or communications. Any such communications should thus provide the consumer with an option to cancel subscription to the mailing list and with the identifying particulars of the source from where the sender obtained the personal information of the consumer.
Business applications
Local technology and business solutions company, DexData Technologies has integrated SMS technology in its business solutions model. Says MD Jans Wessels: "All indications over the past few years were that the wireless applications of technology will gain momentum and that we must be prepared for it. Through our research and development division, Dex has continually monitored progress of this technology with reference to the state of the infrastructure in terms of stability, coverage and functionality, while ensuring business application justification exists, together with market readiness. User acceptance of new technology plays a critical role in successful deployment. We have further identified areas where direct business and financial impact exist with clear ROI."
The Dex insurance solution seamlessly integrates to a generic communication module to enable the sending of SMS messages and data. The system enables pre-defined rule driven messages to be sent and also allows viewing of historic SMS messages on security levels. Full history of all SMS messages is stored with date and time sent together with verification of date and time of delivery by the network.
The DexSecurity Solutions (DSS) division utilises the GSM communication channel to facilitate sending of guard monitoring information from remote guard sites. This system integrates fully to a fingerprint biometric unit, produced and manufactured by Dex IT, to authenticate the guard`s details on location. These messages are delivered directly to the scheduling system via GPRS ensuring real-time updating of guard deployment. This application of the technology and communication process has clear uses in other industries. Several related solutions are currently under development at Dex IT.
Currently USSD technology is being investigated which will enable a two-way SMS communication in a secure interactive connection with the client. This has clear business application benefits.
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