“Data on SMS” Issue 1: 20th September 1998 Revision 1 Copyright Ó 1998 Simon David Buckingham All rights reserved. No part of this publication may be reproduced, in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior permission of the author. Although great care has been taken to ensure the accuracy and completeness of the information contained in this publication, its author Simon Buckingham is unable to accept any legal liability for any consequential loss or damage, however caused, arising as a result of any actions taken on the basis of the information contained in this publication. Page ii www.mobileSMS.com Simon Buckingham Contents “Data on SMS” is divided into the following sections: 1. Introduction PREFACE- THE SUCCESS STORY OF SMS IN FINLAND AIMS AUTHOR AUDIENCE ACKNOWLEDGEMENTS PART 1- What is SMS? 2. Key Features of SMS 160 CHARACTERS STORE AND FORWARD SERVICE SEND AND RECEIVE SIMULTANEOUSLY WITH VOICE, DATA AND FAX CONFIRMATION OF MESSAGE DELIVERY WAYS OF SENDING MULTIPLE SHORT MESSAGES ARE AVAILABLE TO USE SMS, USERS NEED RELEVANT SUBSCRIPTIONS AND HARDWARE 3. Comparison between SMS and Paging SERVICE DESIGN MESSAGE LENGTH CONCURRENT SERVICES INTERACTIVITY RADIO FREQUENCY DELIVERY CONFIRMATION CHARGING TERMINALS ROAMING STANDARDS SUMMARY 4. Comparison between SMS and GSM Data LIMITATIONS INFORMATION TYPES CONCURRENT SERVICES SERVICE DESIGN SERVICE TYPES TERMINALS Simon Buckingham www.mobileSMS.com Page iii 5. Future Mobile Data Standards INTRODUCTION HIGH SPEED CIRCUIT SWITCHED DATA (HSCSD) GENERAL PACKET RADIO SERVICE (GPRS) BLUETOOTH ENHANCED DATA-RATES FOR GSM EVOLUTION (EDGE) UNIVERSAL MOBILE TELEPHONE SYSTEM (UMTS) NETWORK IMPLEMENTATION OF HIGH SPEED DATA APPLICATIONS USING HIGH SPEED DATA PRICING OF HIGH SPEED DATA 6. Applications SIMPLE PERSON TO PERSON MESSAGING VOICE AND FAX MAIL NOTIFICATIONS UNIFIED MESSAGING INTERNET EMAIL ALERTS CORPORATE EMAIL VEHICLE POSITIONING JOB DISPATCH REMOTE POINT OF SALE (POS) REMOTE MONITORING PREPAYMENT OVER-THE-AIR SIMCARD INFORMATION SERVICES TYPES OF INFORMATION SERVICES SUCCESS FACTORS FOR INFORMATION SERVICES SIMPLICITY TIMELINESS CUSTOMIZATION LOCALIZATION INFORMATION SERVICES MARKET STRUCTURE AFFINITY PROGRAMS SUCH AS MOBILE BANKING ELECTRONIC COMMERCE PART 2- How does SMS work? 7. Overview of SMS mobile network implementation INFRASTRUCTURE MESSAGE TRANSFER MESSAGE DELIVERY ATTEMPTS MESSAGE DELIVERY RETRY SCHEDULES MESSAGE DELIVERY SUCCESS BILLING Page iv www.mobileSMS.com Simon Buckingham 8. The ETSI standards for SMS ETSI COMPETITION AND COOPERATION THE STANDARDS 9. General SMS Features CONCATENATION COMPRESSION ENCRYPTION AND SECURITY PRIORITY MESSAGES SUPPORT FOR DIFFERENT ALPHABETS GSM SMS INTER-NETWORK ROAMING NATIONAL SMS ROAMING INTERNATIONAL SMS ROAMING 10. SMS Hardware INTRODUCTION SMS RECEIVE SUPPORT SMS SEND SUPPORT PHONE MAN-MACHINE INTERFACES MESSAGE ORIGINATION MESSAGE ARRIVAL SIMCARDS AND MESSAGE STORAGE SERIAL CABLES INDUSTRIAL TERMINALS DUAL SLOT PHONES SMART PHONES HANDHELD COMPUTERS SYMBIAN SUMMARY 11. Interfacing Terminal Equipment with Mobile Phones BLOCK MODE TEXT MODE PDU MODE 12. Short Message Data Structure SMSC ADDRESS DESTINATION ADDRESS ORIGINATING ADDRESS STATUS REPORT REQUEST Simon Buckingham www.mobileSMS.com Page v SERVICE CENTRE TIMESTAMP VALIDITY PERIOD DATA CODING SCHEME PROTOCOL IDENTIFIER REPLY PATH MESSAGE REFERENCE MESSAGE LENGTH REJECT DUPLICATES USER DATA HEADER INDICATOR SMS COMMANDS MESSAGE TYPE INDICATOR 13. Emerging SMS-based Standards SIM APPLICATION TOOLKIT NOKIA SMART MESSAGING WIRELESS APPLICATION PROTOCOL (WAP) MOBILE STATION APPLICATION EXECUTION ENVIRONMENT (MExE) DIFFERENCES BETWEEN THESE PROTOCOLS IMPORTANCE OF THESE PROTOCOLS PART 3- SMS Hardware and Software Suppliers 14. SMS Center Selection Criteria DESIGN SCALABILITY PERFORMANCE AVAILABILITY AND RESILIENCE CONNECTIVITY PRICING 15. SMS Center Suppliers The following information is detailed for each of the following SMS Center Suppliers: Internet address Postal address Contact people Email addresses Telephone numbers Fax numbers Worldwide Locations Products and services Customers Advantages Disadvantages Page vi www.mobileSMS.com Simon Buckingham CMG LOGICA ALDISCON NOKIA SEMA ADC NEWNET ERICSSON MOTOROLA OTHER SMS CENTER SUPPLIERS (Unisys, Comverse, Glenayre, Centigram, Alcatel/ DSC Communications Corporation) 16. Comparison of SMS Center Suppliers by Selection Criteria CONNECTIVITY COST DEPLOYMENT FLEXIBILITY FUTURE-PROOF GLOBAL RELIABILITY HARDWARE 17. Comparison of SMS Centers by Specific Features X.25 TCP/IP UCS2 GSM 03.39 SMPP CONFIRMATION OF MESSAGE DELIVERY DISTRIBUTION LISTS 18. SMS Center Market Shares EUROPEAN UNION NORTH AMERICA ASIA GLOBAL 19. Overall Ranking of SMS Center Suppliers 20. Comparison of Value-Added Service Modules from SMS Center Suppliers INTERNET EMAIL SMART MESSAGING Simon Buckingham www.mobileSMS.com Page vii WIRELESS APPLICATION PROTOCOL OVER-THE-AIR INTERACTIVE VOICE RESPONSE FAX INFORMATION SERVICES CELL BROADCAST CUSTOMER DEPLOYMENTS 21. SMS Software Suppliers The following information is detailed for each of the following SMS Software Suppliers: Internet address Postal address Contact people Email addresses Telephone numbers Fax numbers Worldwide Locations Products and services Customers Advantages Disadvantages The email software providers profiled are: DIALOGUE COMMUNICATIONS (BASED IN THE UK), ISOCOR (GERMANY), SENDIT (SWEDEN), SCANDINAVIAN SOFTLINE TECHNOLOGY (FINLAND) AND TWS (USA). The suppliers of information services featured are: AIRMEDIA (BASED IN THE USA), INTELLIGENT INFORMATION INC. (III) (USA) AND GSM INFORMATION NETWORK (GIN) (NETHERLANDS), WIRELESS INFORMATION NETWORK (WIN) (UK). The vehicle positioning suppliers are: CROSLAND (UK) AND GLOBAL TELEMATICS (UK) 22. Comparison of SMS Software Suppliers by Selection Criteria CONNECTIVITY COST DEPLOYMENT FLEXIBILITY Page viii www.mobileSMS.com Simon Buckingham FUTURE-PROOF GLOBAL 23. Comparison of Wireless Email Suppliers DATA TWO-WAY IVR INTERNET PAGE FAX MULTIPLE SMS CENTERS 24. Comparison of Information Services Suppliers INTERNET INTERFACE RANGE OF CONTENT GLOBAL DEPLOYMENTS MULTIPLE LANGUAGES INTERACTIVE VOICE RESPONSE FUTURE-PROOF FILTERING PUSH-BASED 25. Comparison of Vehicle Positioning Suppliers ACCURACY DEPLOYMENT MODULAR SERVICES Part 4- SMS Market Developments 26. SMS volume market forecasts TOTAL EUROPEAN MARKET FORECAST FOR SMS SMS REVENUE IN THE USA AND CANADA 27. SMS Availability on different Network Types GSM NMT PERSONAL HANDYPHONE SYSTEM (PHS) PERSONAL DIGITAL CELLULAR (PDC) NORTH AMERICA NAMPS TDMA/ D-AMPS CDMA IDEN/NEXTEL Simon Buckingham www.mobileSMS.com Page ix TETRA/ DOLPHIN IRIDIUM GLOBALSTAR 28. Regional Guide to SMS network support and market development EUROPEAN UNION EUROPE, OTHER EASTERN EUROPE MIDDLE EAST AND INDIA NORTH AMERICA SOUTH AMERICA AFRICA ASIA 29. Network Case Study: Sonera (formerly Telecom Finland) in Finland INTRODUCTION SONERA TEXTUS BRANDED SERVICES PREMIUM RATE INFORMATION SERVICES UNIQUE FINNISH CHARACTERISTICS DEBT-FREE PULL COMPLICATED LOW USE OF MOBILE EMAIL SERVICES. SONERA SMS SUCCESS FACTORS YOUTH INTER-NETWORK NATIONAL SMS ROAMING PENETRATION EXPERIMENTATION CONCLUSION 30. Network Case Study: Vodafone in the UK MOBILE ACCESS MOBILE ACCESS- PC/ PDA RECALL TRAVELFAX RESPOND RESPOND PLUS MINUTE MANAGER DIAL UP MESSAGING ENHANCED X.25 RADIO ACCESS FONEMAIL vodafone:m@il FAX MESSAGING BUSINESS PARTNERS PROGRAM Page x www.mobileSMS.com Simon Buckingham PREMIUM RATE INFORMATION SERVICES DATA-ONLY AND HIGH VOLUME TARIFFS 31. Country Case Study: Value-Added Services in Hungary PANNON GSM WESTEL 900 32. Network Case Study: Mutiara Telecom (DiGi 1800) Malaysia 33. Country Case Study: SMS in Japan TOKYO DIGITAL PHONE (J-PHONE) IDO 34. Case Study Central Details of SMS services, applications, partnerships and promotions around the world. 35. A guide for network operators to maximize returns from SMS FOCUS ON REVENUE PER SUBSCRIBER AS WELL AS MARKET SHARE FOCUS ON SERVICES NOT TECHNOLOGY CHOOSE THE RIGHT SMS CENTER CHOOSE POPULAR APPLICATIONS AND SERVICES REMEMBER SIMPLICITY CHOOSE THE RIGHT SMS SOFTWARE SUPPLIER PRICE THEM CORRECTLY ENABLE ALL POTENTIAL USERS EDUCATE CUSTOMERS EDUCATE THE MOBILE WORKERS SET UP A BUSINESS PARTNERS PROGRAM 36. The Mobile Value Chain TERMINALS PROTOCOLS TECHNOLOGIES SERVICES APPLICATIONS 37. Summary 38. Index of Contents 39. Links to Related Internet sites Simon Buckingham www.mobileSMS.com Page xi Introduction The Short Message Service (SMS) is the ability to send and receive text messages to and from mobile telephones. The text can comprise of words or numbers or an alphanumeric combination. SMS was created when it was incorporated into the Global System for Mobiles (GSM) digital mobile phone standard. The first short message is believed to have been sent in December 1992 from a Personal Computer (PC) to a mobile phone on the Vodafone GSM network in the UK. PREFACE- THE SUCCESS STORY OF SMS IN FINLAND In August 1998, the author of the “Data on SMS” book, Simon Buckingham, traveled to Finland and learned first hand about the success of mobile phones in general and SMS in particular in that market. Meetings were held with: · Nokia, a leading mobile phone designer and manufacturer, · Scandinavian Softline Technology, a supplier of SMS-based services platforms to half a dozen mobile network operators around the world, and · Sonera, formerly Telecom Finland, a mobile network operator whose 1.2 million customers send and receive