[Telephia reports download purchases paid for via premium SMS (at off-portal storefronts) totaled nearly $215 million, while voting/sweepstakes entries, from campaigns like NBC's Deal or No Deal, generated more than $35 million.]

San Francisco -- Telephia launched the industry's first ever Premium SMS Report. The report provides a detailed look at the US market for off-portal content purchased via premium SMS from off-portal storefronts as well as premium text messaging services, like voting/sweepstakes and chat. Premium SMS revenues totaled more than $273 million, making up 32 percent of mobile content revenue in Q1 2007, according to Telephia, the world's largest provider of syndicated consumer research to the telecom and mobile media markets.

Download purchases paid for via premium SMS (at off-portal storefronts) totaled nearly $215 million, accounting for 79 percent of premium SMS revenue. These off-portal storefront purchases include content such as ringtones and horoscopes. Voting/sweepstakes entries generated more than $35 million. While voting/sweepstakes entries generated only 13 percent of total revenues for premium SMS transactions, they represented 47 percent of premium SMS volume, equaling more than 34 million transactions.

"Premium text messaging continues to be an additional way to reach consumers directly off the carrier decks. Premium SMS has grabbed a healthy slice of the mobile content market, accounting for an off-portal share of 32 percent," said Kanishka Agarwal, vice president of mobile media, Telephia. "Moreover, marketers are experimenting beyond the standard rate SMS voting pioneered by American Idol and tapping into premium SMS with voting/sweepstakes campaigns. NBC's Deal or No Deal has translated into a premium SMS hit, generating nearly half of the volume and revenue of voting/sweepstakes entries in the first quarter of 2007."

Premium SMS Transaction Volume (U.S.)

Off-portal Storefront Purchases 40%

Voting/Sweepstakes Entries 47%

Other 6%

Chat/Community 7%

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