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By Tony Hallett, 5 March 2003 15:16

NEWS Fixed line telcos have been urged to exploit the demand for SMS services by encouraging the use of text messages on traditional wireline phones. Last year, SMS messaging generated around $36bn in revenues for mobile operators around the world, according to GSM Association figures - this from a technology included at the last minute in the GSM spec and receiving little in the way of marketing from operators. Now Frost & Sullivan is demanding a rethink. "By generating only a small percentage of this traffic volume, fixed SMS still has the potential to yield substantial revenues for fixed operators," said analyst Nathan Budd in a statement. Forst & Sullivan believes capturing just one per cent of the SMS market is worthwhile and achievable. To date, a few domestic and business handsets - typically cordless, DECT models - offer fixed-to-mobile SMS. One notable device that does is Amstrad's converged, fixed line em@iler device. There are also likely to be future opportunities for content-driven services - as opposed to peer-to-peer messaging - or future offerings based on richer messaging formats such as MMS, though this is not the focus of the latest research. However, there are obstacles for fixed telcos to overcome. Personal mailboxes or phone numbers for individual family members would be preferable, and while SMS has taken off as mobile penetration rates have hit the 80 per cent mark in a number of European countries, Forst & Sullivan sees mobile operator bundles including free text messages each month contributing to a "well-established, well-defended market, which poses a threat to a smooth foray of fixed-line SMS". Most problematic of all, perhaps, isn't user demand but telco perception that SMS will act as a substitute to voice calls.