TDC and CMG will build a pan-European SMS platform, to be called MIGway.
Danish telco TDC, and Anglo-Dutch wireless consultancy firm CMG have announced a joint venture to provide a two-way pan-European SMS/Internet platform, so that companies can send and receive SMS messages from customers across Europe, without having to negotiate bilateral agreements with mobile operators in each country and without building their own physical infrastructure.
Although the companies claim that the joint venture, to be called MIGway, will be the breakthrough for mCommerce in Europe, this should be taken with a pinch of salt. It does, however, demonstrate the growing realization among players in the mobile industry that – for now at least – SMS is one of the most important revenue sources.
Unlike much-hyped services, such as WAP and now GPRS, SMS appeared almost as an afterthought and spread by word-of-mouth. Its uptake was driven simply by the consumer’s own desire to communicate, rather than by external content providers. Only now is the industry beginning to catch up with the technology’s potential.
MIGway will be a boost to independent mContent providers. At present, mobile operator-backed SMS portals such as Sonera’s Zed platform (which Vodafone and Vivendi’s Vizzavi mPortal has also licensed) can deliver mServices directly to the mobile operator’s customers. Other would-be SMS providers must negotiate a deal with each mobile operator in each territory they want to operate in, if they are to provide services. This has left smaller independent operators marginalized; MIGway will help redress the balance.
Going into the future, the platform should also make it easier for content providers to incorporate new developments in the mobile instant messaging arena, such as EMS (enhanced messaging service) and MMS (multimedia messaging service). These services will be increasingly important revenue streams in the mobile industry, complementing GPRS and 3G offerings.
MIGway isn’t going to set the world on fire. However, it stands a good chance of generating significant revenues for TDC and CMG, while also stimulating the commercial use of SMS.
