Uncommon Wisdom

Oct 16 2008   2:19PM GMT

Verizon reveals SMS monitization plan

Tom Nolle Tom Nolle Profile: Tom Nolle

Verizon has shown some of the teeth behind the monetization frenzy among operators, revealing a plan to reassess the charges levied on bulk SMS generators such as the companies who send phone alerts and market messages.

The decision is linked to a general view that SMS will become another all-you-can-eat service, and that like the Internet, there is a threat to operators in that they might then become simply a passive conduit for another’s business model. That would create investment without return.

We believe this particular item will be readily missed in coverage of the provider space, but the significance in our view is very high. Operators are working to end the free ride because in these times they must, and that will spread to other areas.

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