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SMS.ac, Inc.

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SMS.ac Inc.
File:SMSac logo.gif
Company typePrivate
IndustryTelephony
Founded2001
HeadquartersSan Diego, California, USA
Key peopleMichael Pousti, Chairman and CEO
ProductsSMS messaging
Revenueunknown
Net incomeunknown
Number of employeesunknown
Websitewww.sms.ac

SMS.ac, Inc. is a mobile data communications company based in San Diego, California. Its domain address uses the .ac top-level domain for Ascension Island.

Membership

SMS.ac claims over 50 million registered users in more than 180 countries, making it the largest community of registered mobile users in the world.

Business model

SMS.ac derives its revenue through revenue-sharing arrangements with cellular carriers. Specifically, it sends users reverse-billed SMS text messages, which incur a charge to receive. The CEO of SMS.ac, Michael Pousti, in a speech at Global Mobile Congress 2004 , made the following remarks:

  • "Mobile operators are uniquely positioned to benefit from revenue shares derived from even the smallest transactions. As a focal point of this nascent but exploding industry, it is important for operators to enter quickly into equitable revenue share agreements with third parties. (To operators) Open your billing systems and you will prosper."
  • "Nearly 2 billion people worldwide are already paying their mobile providers for mobile phone use. Now, imagine if your company can harness the power of microbilling. If your business has not already embraced an aggressive strategy to evolve to a mobile content or application company, drop most everything you’re doing and prepare your content for mobile. Just be sure to base your offerings on communication. It’s all about communications – not just content."
  • “If we try and tether the growth too early with compliance and regulations, the chances that we’ll do more harm than good is almost a certainty."
  • "Integrated billing is the path to the future. Refine and improve the process for third-party entities to collect revenues and get paid. Achieve predictability with billing. Work towards standardization. Without this, the industry won’t ever be real.”

Criticisms

  • Sms.ac is noted in the blog community for its vigorous legal response to online criticism.
  • Phone users are often billed for supposedly "free" services that they say they never ordered.
  • Cellphone giant Sprint no longer includes sms.ac in their premium "Vision" Service.
  • Sms.ac asks for the password to users' email accounts. This is optional. Invitations are only sent to the users email contacts with their permission.

See also

References

  1. "SMS.ac". SMS.ac.
  2. http://corporate.sms.ac/Press/pr/pr_101204.htm
  3. "Trademark infringement notice" (PDF). Banpremiumsms.com (PDF). {{cite web}}: External link in |publisher= (help)
  4. "Cease and desist letter". JOI ITO (.doc).
  5. ^ "The End User: Noticing a red flag". International Herald Tribune.
  6. "Clarification". International Herald Tribune.
  7. "Message to the wise about text trick". Chicago Tribune.
  8. "CORRECTIONS AND CLARIFICATIONS". Chicago Tribune.

External links

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