SMS and premium content will be targeted at fertile North American market
TeleCommunication Systems, Inc. (TCS) (NASDAQ: TSYS), a key architect of wireless location and messaging software, and Mobileway, a European and Asia-pacific leader in the field of wireless content delivery and world leader in managing and monetizing mobile data transactions, today announced they are joining forces to create the largest commercial Short Message Service (SMS) delivery network. The partnership will provide a single access point to over 375 million phones for 2-way messaging and 675 million phones for 1-way messaging by utilizing over 85 direct connections with carriers throughout the world.
Through the partnership, TCS will serve as Mobilewayâ€™s North America partner in delivering SMS messages to North American wireless customers, and Mobileway will serve as TCSâ€™ global partner for delivery outside North America. This strategic partnership will facilitate the delivery of additional commercial SMS traffic into carriersâ€™ networks from both companiesâ€™ media and enterprise clients.
The TCS/Mobileway partnership is targeting the expected growth in the use of wireless messaging by mobile subscribers. The U.S. market is now poised to lead the world in wireless messaging growth over the next three years. The adoption and use of SMS is the first step towards the successful deployment of premium services evolving to EMS, MMS and other advanced wireless data services. The TCS/Mobileway partnership will focus on providing the highest quality-of-service possible to enable these advanced services.
The TCS/Mobileway strategic partnership will pursue direct connect agreements with North American carriers and establish premium content revenue share deals with carriers on behalf of TCSâ€™ and Mobilewayâ€™s media and enterprise clients.
"We recognize the tremendous opportunity that this partnership will bring to the global commercial SMS marketplace," said Patrice Peyret, Mobileway CEO. "Integrating our hubs and networks will allow us to jointly create a global commercial SMS network with more reach and reliability than has been previously achieved for wireless data services."
"Merging our network with Mobilewayâ€™s will allow both companies to offer customers new revenue opportunities â€“ contributing to their overall ARPU," said Maurice B. TosÃ©, chairman, president and chief executive officer for TCS. "We are truly unleashing the potential for SMS growth in North America and advancing the ability to communicate quickly and easily â€“ from anywhere around the world."
Mobilewayâ€™s SMS hub sites are based in Paris and Singapore, while TCSâ€™ North American hub site is located in Seattle. The companies will merge their two networks to create a single global SMS network.
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