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Lenco Mobile Inc. Sees Growth Opportunities in the United States for MMS Solutions

Thu, 04/14/2011 - 7:31am
SANTA BARBARA, Calif. -- (BUSINESS WIRE) -- Lenco Mobile Inc.’s CEO & President, Michael Levinsohn discussed the trends in the mobile industry and market opportunities for his company in an interview earlier today. Levinsohn noted that during 2010, wireless subscribers in the United States sent over 2 trillion text messages and 57 billion MMS messages, according to CTIA – The Wireless Association. This represents growth of 31% and 62% respectively over 2009. This growth, together with the increased number of smart phones will continue to create pressure on wireless carriers to roll out improved infrastructure.

According to industry experts Chetan Sharma Consulting, wireless penetration in the United States crossed the 100% mark in December 2010. This figure is supported by CTIA – The Wireless Association who estimate that there are now 302 million wireless subscribers in the United States. Average Revenue Per User, the industry metric to measure performance continues a decline for voice usage in the United States. While more time is spent talking on mobile phones, the revenue generated by the carriers is decreasing. Revenue for data services and messaging however continues to steadily increase.

Levinsohn noted, “The trends in the United States mirror what is happening elsewhere in the world. The bulk of MMS messaging here is what we describe as P2P or person to person messaging. As brand owners and wireless carriers start to deploy A2P or application to person messaging, the volume will grow significantly. All of this augurs well for Lenco Mobile as we continue to expand internationally.”

“Carriers are all looking for an integrated business solution that drives ARPU and helps them retain customers. When the market reaches 100% saturation, the fight to retain customers is going to increase dramatically, and carriers can’t simply throw money at the problem. They need to become more efficient in managing subscriber relationships, which is our core competency.”

Levinsohn went on to add, “We are also making excellent progress in the international market and we have three new carrier installations that we expect to come on stream within the next 30 days. In each instance the carriers have identified the value that we have to offer both technically and strategically and they have given us the go ahead to install our messaging solutions, which ultimately means new revenue for us. Unfortunately, due to the sensitive nature of the contracts we will no longer provide specific details of each new installation, but we will provide commentary on broader market developments.”

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