Over the past few years, there has been continuous decline in ARPU (Average Revenue per User) of Mobile Network Operators (MNOs) due to increased competition, which led to constant decline in voice & data revenue. Premium messaging opens up an additional revenue stream for mobile network operators as they are chargeable over and above the standard rate messages. 

The mobile network operators use premium messaging as value added service, which helps increasing their APRU. Customers prefer to access premium messaging services as they are user friendly; provides value to customer and are exciting.

Premium messaging is segmented into Premium SMS (PSMS) and Premium MMS (PMMS) with the former commanding most of the market volume and revenue. There would be a slight shift of revenue concentration from PSMS to PMMS as a result of penetration of camera mobile phones and reducing PMMS prices. Entertainment is the most popular premium SMS services segment, which includes songs, videos and games, ringtones and TV voting. The global premium messaging Industry volume is expected to reach 1,134.2 Billion by the year 2017 at a CAGR of 36.8% from 2012 to 2017.