Principal role of the USSD service.
USSD (Unstructured Supplementary Service Data) is a technology used for transmitting of information over GSM networks. As a session based service it can support a sequence of information exchange. It works in two modes: push mode and pull mode.
USSD Phase 1 (pull operation), described in GSM 02.90, handles mobile initiated requests. In this phase no real time session is held, as it is only able to pass information from a mobile phone to the USSD service with a confirmation.
USSD Phase 2 (push and pull operation), described in GSM 03.90, handles network-initiated requests and establishes interactive dialogue between USSD application and mobile phone. If a user don’t perform any actions the connection is released by a time out. This phase also allows to push information from network to a users’ handset.
Often overlooked, USSD technology helps users quickly and easily access information and services, and provides endless business opportunities for mobile service providers.
How does it work? User’s perspective.
1. User enters a short USSD service number on the mobile phone (e.g *100#) and press “call”.
2. USSD service receives the request and responds by sending a menu to the user.
3. The user enters a character that corresponds with his/her selection.
Usability
• Fast response. Unlike other short-message protocols which use store-and-forward technique, it offers session-based communication. Information is sent directly from a mobile phone to an USSD platform during a real-time session, avoiding SMSC in the processing path. As a result, a user don’t experience any latency while sending requests to a service.
• Worldwide access. All USSD request are rooted back to the home network. Dialing an USSD number while in roaming in another network will lead to a service which is in home network. This helps users to access their favourite services from other countries.
• Simple to use. USSD service is simple to access through practically any GSM mobile phone. A user initiate session by dialing a short code on a default mobile screen which starts with * followed by digits and terminated with # (e.g. *111#). Some of these codes request a single piece of information while others deliver a series of text menus with further navigation.
Functionality
USSD is ideal for a menu-driven applications, therefore it has great potential for mobile banking to perform such operations as balance check, account transactions, payments etc. It is important to note that USSD is not a menu on a mobile phone, but just a bearer for text selections and menus. These menus and texts are not stored on a handset or a SIM card. That’s significantly improves level of security on the users’ side as opposed to SMS messages when data is saved on a device.
Here is the other cases of using USSD:
■ Balance enquiry as alternative to IVR
■ Callback Services
■ Money transaction
■ Informational services ( weather, news, stock market etc.)
■ Voting
■ Reservations
■ Service management (activation / deactivation)
■ Notifications
■ Mobile advertising
USSD + SMS + WAP
USSD can serve as a convergence point for SMS and WAP services. As simple and straightforward service, USSD requires almost no user experience – anyone who can type on mobile devices can use it. With the help of it, service providers can encourage users to visit WAP sites. For example, USSD can respond to a user’s request with an SMS, which can contain a WAP link. This link may lead to a WAP site that is somehow connected with the USSD service which is being used.
Key Benefits
For mobile users:
• Simple to learn, direct access from any default mobile screen.
• Fast response time.
• Supported by 99% of mobile devices on the market.
• Worldwide access to services.
For service providers and operators:
• Can be quickly implemented to existing infrastructure.
• USSD can easily engage users.
• Fast mobilization of business for service providers.
• Cheaper than sending SMS.
Are Missed Calls Your Missed Opportunities? Learn Dry Facts.
It was the end of last year. I was asked to prepare a description for one of our products called Missed Calls Alerts. Not that we don’t have one. We just wanted to update to a better version.
A good news for me was that we hired a new girl to help me with writing and I though it would be a good first task for her. She did fine as to describing but…
What is the real selling point for this service, I asked myself?
(For those unfamiliar, the service sends an SMS to a subscriber who was unavailable to take the call about missed calls (who, when, how many times). The service can be extended to send SMS to both parties (the caller and the called), to send SMSes as if from the called party so it is easier for the called to call back, to identify callers from the phone book, etc.)
Well, right off the top of my head, I thought we shall be looking at at least 1 percent ARPU increase.
And you know, that’s what I found asking people from all over the world. But it is really good news! Because it means that every operator should have it (the cost of the solution compared to the benefits says: GET IT!)
And indeed, this product is rather common in mobile-developed parts of the world (meaning NOT the US).
Below are answers to my question about the service on a LinkedIn VAS Professional group:
1) Where it is used:
Felipe Huete, Founder and CEO at MZZO Chile S.A.
Here in Chile we have the service, it works quite well. I don’t have numbers but operators consider it a key service.
Ronen Mense, Interactive Mobile Channels – Mobile Marketing, Advertising, Search
I’ve seen this service here in Thailand for a few years, quite common in fact, and I believe its operator centric. Yet to see what Felipe mentioned as the addition of VAS ads, this is a great ad inventory… Would love to get some of that ad inventory!!
Refik Naccur, VAS project expert/Norconsult Telematics/at STC Kuwait “VIVA”
Talking about the MCA service in the Middle East, it is know in different names like IClip, Super Clip, Majoud “Which means: I am present” and so on. … Any way, this service is very common is the Middle East and I believe it is very essential service for the operators in the area …
Bartlomiej Chmielewski, Product Manager at PTK Centertel
Hi everyone! I’m a Product Manager for MCA-like services in Poland. I do confirm that MCA as well as Notify Me services as performing well and have a great accommodation on the market.
Frederic Ankaoua, VAS Account Manager at Comverse
Hi Ivan, I’m an account manager in Comverse and we have more than 140 operators worldwide providing this service.
Ankur Srivastava (ankur.srivastava31@gmail.com), Product Manager – Cellebrum Technologies Limited
Hi, I have implemented MCA (only called party) for one of the largest operator in India.
2) Now, let’s talk numbers. In order to calculate, we need several statistics and assumptions. That’s what people have contributed:
Bartlomiej Chmielewski, Product Manager at PTK Centertel
In terms of numbers I can say the ‘twins’ [MCA + Notify Me (when user available) - I.K.] can increase your MoU by 10-15% and I have it confirmed with numbers.
Frederic Ankaoua, VAS Account Manager at Comverse
I can tell you that figures from some Western European customers show that there is between 15 to 20% call return due to the Missed Call service.
Raul Castanon, Experienced Product Management / Product Marketing Professional
Typically I built the business case with estimate 10 to 15% which I think is a realistic rate of call return. … Statistics from different operators that have deployed missed call alert support an average of 12% call return.
Ankur Srivastava (ankur.srivastava31@gmail.com), Product Manager – Cellebrum Technologies Limited
No. of messages recvd by the subscriber in a day – 4 (avg)
Calls made after receiving of message – 50-60%
Service Penetration – 10-12%
Price point – INR 15 = 30 cents
Business Model – Revenue Share/ Managed Service with the vendor
Dmitry Mezentsev, Head of VAS R&D, CBOSS
We have in stats 10% of incoming calls that can be notified only by means of MCA and about 40% of call returns which gave 4% total calls increase.
The only question here is service penetration which is in spite of MCA is free is not 100% but sometimes only 5% (we had such a case).
So taking in consideration fair 25% penetration (or 10-12% like in Ankur case) we’ll get 0.5-1%, but it’s really great figure for such a service.
My summary will be the following:
Besides the incomplete voice mails and unreachable, our statistics show that out of 100% sent MCAs only a third are delivered (within one day, that’s the lifespan of the service here in Russia’s MTS). Also we have 100% penetration since the service is on by default.Also: what would be a percent of missed calls in general? I saw 40% somewhere but this seems too high. With our service always on, we have the *perfect* number of about 10% of all calls that are missed and alerted of. Of which, only a third of MCAs are delivered within one day, thus we have a 3% potential increase in voice traffic. If we combine this with Raul’s 12% call back stats, we get 0.3% increase in ARPU. I think the return rate is three times higher (about 40%) thus we have a 1% increase in calls. Thus an estimate of 1/2 – 1 % increase in ARPU as compared to the situation of no such service seems to be a pretty good approximation.
However, this calculation assumes that the calls made after the alert (let’s call them “MCA calls”) would have not happened otherwise (i.e. without the alert). It seems to be a pretty restrictive assumption and it depends on how impulsive and important were the calls. Would they have happened in any case? Let’s hypothesize: I think about a half of MCA calls are a pure increase (impulsive, non-important), whereas the other half would be made anyway (called until one delivers the important message).
We then get a 1/2 percent increase… within the (lower) range of others, seems reasonable altogether.
To make it sweeter and to support the proud name of a marketer, I would say (because of all other assumptions which can take on higher values as well) 0.5-1 percent ARPU increase. Viola!
(Of course, there are additional complications like minute-bundles: may be that’s the reason why the US does not need this service — they probably care for LESS MoU for unlim plans)
US SMS Costs; Again
Are in the spotlight of the recent NYT article. I also loved the discussion on Slashdot and comparison of SMS to the transmission from space which is apparently cheaper than to send (and receive!) an SMS in the US.
The discussion on Slashdot has yielded about 400 comments looking at the “phenomenon” so there is very little one can add. Well, except for the voices from the infrastructure side that is us.
As to clogging of the network by SMS, I recommend this resource — http://www.smsanalysis.org/
Our pricing model takes into account the number of SMS per second since it takes resources in terms of the signaling links and computing/storage. In terms of power consumption or variable costs, just recently I have calculated how much resources are consumed by our SMS center. The center sends 180,000 SMS consuming as much electricity as just one 60W bulb. As to the bottleneck in terms of the number of SMS per second, there are costs associated with signaling links, but in general we can provide any capacity extending the solution by adding computing capacity (BTW, we use Sun).
There is at most linear relationship between the number of SMS per second and costs. But costs are one-time (except for some for support) and they are recovered… in just four months as my colleague who worked on the operator’s side says.
Indeed, (I love this quote!), “Texting is the closest thing to pure profit ever invented” – Sir Chris Gent, founder of Vodafone.
Green SMS and USSD Centers
There is a lot of talk nowadays about being Green (because of the climate change) and now also about being cost efficient (because of the world financial crisis).
So the question is: how efficient is your SMS/USSD center/gateway?
See what people are answering: http://www.linkedin.com/answers/technology/information-technology/telecommunications/TCH_ITS_TCI/358022-7613196
And cast your vote!
Speaking of voting: Congrats to Obama supporters!
Eyeline USSD/SMS Center
SMS Saves the Plane
It’s simply incredible. I am astonished. READ THE LINK.
http://www.irishtimes.com/newspaper/ireland/2008/0807/1218047756406.html
Landing a plane by SMS! May be the recent fuzz about SMS and safety should be taken a bit cautiously? Because Arnold already banned SMS and driving (I support this though). I guess you can still SMS in Russia and elsewhere. True or false?
VOTE:
Is the US Economy Going Nuts?
Oh, yes, and this is snow below. Our first snow in Siberia which appeared on September 17th. Hello winter and global… what – freezing? Or it is a part of the global weather shifting?
Well, besides obvious housing and financial market problems, Telco companies, which are low in count but high in subscription numbers, seem to be getting greedier in the US than ever before: Read more
Blue Man Group
I saw the Blue Man Group live in NYC where their home base is and I loved it. True connectivity with the audience! A subsequent video was also a great treat — smart and glueing.
Mobile Marketer writes that Blue Man Group is using now SMS and mobile interactivity. Love it! (Think of USSD though — easier to choose from the menu and easier to collect numbers to send promotions later.) Read more
Interesting SMS Stats
From MobileMarketingWatch
Mobile Spam
“American consumers are expected to receive an estimated 1.5 billion unsolicited text messages in 2008,” read an article in New York Times. Charged at c20 an incoming message, does it make sense for operators to REALLY combat it? It means throwing away $300,000,000. Yes. Could be a nice present for any company, could it NOT?
As to spammers: easy to guess — <att-cell-phone-number>
It’s hard to comprehend. American mobile operators should be ashamed of charging for spam.
To couter-balance the tone, look at the sunset. The picture is taken by the US space craft that landed on Mars.
To put in some context advertising 
— USSD cannot be used for spam!
