December 2012 Periodic Update

Following the 'Data Tsunami', look out for the 'Capacity Crunch'

In our last update you may remember we drew attention to fears of a 'data deluge' during the London Olympics. (As it happened, the networks got through relatively unscathed.) But now UK regulator Ofcom has warned the industry that action needs to be taken now now to avoid an imminent 'capacity crunch'.

As consumers get more and more used to downloading video, TV and films, it is estimated that by 2030 the demand for mobile data could be 80 times what it is now. As well as planning to release more spectrum, Ofcom hopes to see more efficient use of available frequencies, as well as better use of wi-fi hotspots. We shall see...

So much for a 'data tsunami'. In this issue we look at how SMS and the networks coped in the face of a real life tidal wave. How WING Money grew from a fledging 'SMS Banking' concept to one of the world's most successful mobile banking systems. And how to go about sending SMS to Brazil - land of the lambada, samba and bossa nova. Take it away...

'Go indoors immediately...'

The United States' Commercial Mobile Alert System (CMAS), a national SMS alert system launched last April, got a real testing when hurricane Sandy hit the East Coast.

The first such system in the US, the CMAS was intended to ensure the public can receive emergency alerts on their mobile, without needing to sign up or pay for them. Developed through a partnership between the Federal Emergency Management Agency (FEMA), the Federal Communications Commission (FCC), and the wireless phone carriers, the system enables authorised public safety authorities to use FEMA's Open Platform for Emergency Networks (IPAWS-OPEN) to send geographically specific alert notifications.

These Wireless Emergency Alerts (WEA) appear in the form of a 90-characters or less SMS message. According to FEMA and the National Weather Service, such messages were sent out to people in Virginia, West Virginia, Maryland, New York, Massachusetts, New Hampshire and Maine. Typical alerts included "Blizzard Warning this area till 6.00 PM", "Go indoors immediately and remain inside", and "Flash Flood Warning this area til 3.45 PM".

The system is not yet 100% universal. CTIA - The Wireless Association estimate that while many devices are compatible to receive WEA, others may need a software update. The conditions also took their toll on connectivity, as cell sites and other infrastructure were flooded or cut off from power. Immediately after the storm, the FCC estimated that 25% of cell sites in the affected area were out of operation.

As local inhabitants rallied to provide charging points, the operators dealt with the engineering backlog. Within five days after the storm hit, Verizon Wireless, AT&T and T-Mobile USA reported operational levels of over 90% in New York and the North East. AT&T and T-Mobile USA also agreed to share their networks in New York and New Jersey to provide adequate mobile service through a roaming agreement. 

Wikipedia: Hurricane Sandy near peak intensity on October 25, 2012

The FCC observed that serious outages remained in the areas worst hit, so were continuing their partnership with the Federal Emergency Management Agency (FEMA) and others in the clean-up. Operators also made significant contributions to the Red Cross relief effort, with US$500k, US$250k and US$100k from Sprint, AT&T and T-Mobile, along with a pledge of US$3m from Verizon Customers and the Verizon Foundation.

While there is a still long road to recovery, it's refreshing to see how well the mobile industry - and SMS - can rise to the challenge when it counts.

WING Takes Off

Officially launched in January 2009, WING's objective was to develop a secure mobile payments model that makes low-cost transactions accessible to everyone. In addition to simple deposit, withdrawal and domestic remittance products, WING also offers solutions for small and medium-sized enterprises. Including bill payments, payroll, business-to-business payments, and loan collections for microfinance institutions (MFIs).

From November 2010, thanks to regulatory changes, WING customers can now use our services in either US dollars or the Cambodian riel. What's more, through our collaboration with AusAid and Equal Access, WING is reaching out to people all over Cambodia, either through our expanded merchant network, or through our sponsored radio programmes. And it's working! More than 1.07 million young Cambodians tuned into WING's 'We Can Do It' radio programme, aimed at increasing financial awareness in rural areas.

Because the WING service is operator-agnostic, it is available on all of Cambodia's mobile networks, reaching 100% of the country's population, and making it the country's largest mobile money company. A mixture of EFTPOS (electronic funds transfer at point of sale) and USSD (unstructured supplementary service data) is used, with customers also receiving SMS receipts in real-time. For payroll and other bulk SMS activities, WING to proud to use RoutoMessaging to reach its customers.

Send SMS to Brazil

SMS Expert looks at how to get the most from the largest country in South America

Set against the stagnant markets of Europe and the USA, Brazil is a land of opportunity and growth, with direct foreign investment rising from less than $10m in 2003 to almost $70m in 2011.

Boosted by the new middle class, the 2014 World Cup, and the 2016 Olympics, this is a trend that's set to continue. Brazil's telecoms industry is looking to rise to the challenge, with their four largest mobile operators bidding for 4G spectrum last June.

However, even though Brazil is fifth behind China, India, the USA and Indonesia - with more than 253m mobile subscribers and 133% penetration - 90% of Brazilians do not own a smartphone. Which means the only way you can guarantee to reach 90% of this vast market is through SMS.

But first you need to be aware of local messaging issues, and how to overcome them.

Between them, Brazil's top four mobile operators share 98% of the market. Such is the country's size, they are only able to provide network coverage throughout the 26 states by using 'domestic roaming' agreements.

Investment in infrastructure doesn't always keep pace with expansion. In fact, Anatel, Brazil's National Telecommunications Agency, temporarily prevented three operators from selling lines in certain states until they improved their service.

If you intend to do business here, successfully delivering SMS via routes that are reliable and stable, you need to find a provider with a real understanding of how Brazilian operators work.

For example, you should be aware that operator roaming routes will not provide access to CDMA operators. To avoid poor delivery rates, you need a carrier who can give you other options.

You also need to know that Brazilian operators have a real aversion to 'marketing' SMS, and will block any messages which feature alpha-numeric sender ID, identical content, certain keywords, or delivery speed. They see spam as a real problem, and do everything they can to avoid complaints from their customers.

Anyone who wishes to launch a bona fide, opted-in SMS campaign must do it through a local company, with dedicated short codes. It is also necessary to register the originator addresses, plus the nature and content of the campaign with the operators, who will then charge a premium rate for termination.

Given the difficulties of sending such Application-to-Person (A2P) SMS to Brazil, what are your options? You can go down the laborious route outlined above. Or you can use a Tier 1 carrier like RoutoMessaging. An experienced provider with a real insight into the Brazilian market and a deep understanding of its challenges. Who will connect with local operators direct on your behalf, and deliver an SMS campaign in a way they will accept.

It's up to you. As they say in Brazil, Quem não arrisca não petisca. Nothing ventured, nothing gained.