Abstract:

Short Messaging Service (SMS) is a versatile GSM technology with a multitude of applications. Arabic News via SMS is one example. It is basically an alert service that consists of sending subscribers a short message to alert them of important event happenings. In this study, we were interested in evaluating how the business model adopted (sponsored versus paid subscription) affects subscription. The data we utilized is based on the market experience of a Lebanon-based SMS service provider (Cellcom) in marketing the Reuters Arabic News SMS service. Our study involved tracing the offering of an Arabic News SMS service by Cellcom through various phases at different points in time. Each phase utilized a different business model, each with different participating entities, different payment methods, and different advertising mix. Based on these results conclusions are drawn and recommendations are made.