Submitted by Industry Comment on Wed, 20 Jan 2010 14:17

The possible reduction in mobile call charges in South Africa will change consumer behaviour says Pieter Streicher, Managing Director of BulkSMS.com.

2010 is expected to bring a reduction in South African interconnect rates, which is likely to result in cheaper cellphone call charges. On the one hand, this is good news for consumers initiating calls, but it will also potentially mean a noticeable increase in the number of calls that people receive. In a world where information overload is already a challenge, this could be onerous for consumers, and drive changes in behaviour patterns.

One of the changes could be that people are less likely to answer calls, particularly from numbers that are not in their phone book. People may also leave their phones on silent for longer periods. These two factors would result in their numbers of voicemail messages increasing.

Recent research by US networks indicated that people are increasingly neglecting their voicemails. In a study conducted for Sprint, results showed that people under the age of 30 are four times more likely to answer an SMS within minutes than respond to a voicemail. Those over 30 were twice as likely to do the same.

It is probable, therefore, that people will increasingly resort to SMS to reach each other in order to receive a response with minimal delay. Some may even disconnect voicemail functionality altogether, or opt for services which convert voice messages to SMS.

Also, given that it costs a premium to send an SMS message, it is unlikely that people will send unnecessary communications via SMS, as we have seen with mediums where the cost to the sender is negligible, such as email, Skype or social networking tools. This means that SMS will retain its value as a communication medium.

For businesses, this trend is particularly significant. While most consumers have embraced SMS as an effective tool, the uptake amongst businesses has been slower. Many businesses rely heavily on voice and email communication, and it will become increasingly challenging for them to reach their customers as volumes of calls and emails increase.

To remain relevant and in touch with customers, businesses will need to gear themselves to embrace the opportunity of SMS. In the future, a call or a voicemail will not make the customer service grade—if a company cannot reach a customer telephonically, they should have the functionality to send a follow-up SMS.

Similarly, companies need to provide ways for their customers to reach them via SMS. Advertisers are waking up to the fact that ‘short code’ services—where customers can SMS a five-digit number—is the fastest and most effective call to action. It is easy to remember and immediate, and provided that the company acts responsibly and does not over-charge for the service, it is an effective tool for consumers.

It is expected that during the 2010 Soccer World Cup, many of the sponsors and official bodies will communicate with fans in this way. In the year ahead, therefore, SMS will be an increasingly primary communication tool, both in lives of South Africans everyday, as well as the millions of soccer fans due to visit our country in June/July.

Pieter Streicher, Managing Director of BulkSMS.com

About BulkSMS.com

BulkSMS.com is a leading SMS messaging service provider offering two-way SMS communication services in South Africa and globally. The BulkSMS gateway connects to over 700 mobile network operators world-wide. The company was launched in 2000 and is headquartered in Cape Town, South Africa, and was one of the first commercial web-based SMS messaging platforms to be launched globally. The company is a member of the following industry associations; the Wireless Application Service Provider Association (WASPA), 160 Characters, and the Mobile Marketing Association.