Mobile Internet Cut To Affect Businesses

22 August, 2010 (11:06) | Internet Marketing | By: Sam Hallahan

Telstra has announced plans to cut internet access of 1.6 million Blackberry and iPhone users. The announcement follows the telco’s loss of millions from customers overspending and failing to pay bills.

An “app cap” will be implemented to those who over spend, barring services to users of smartphones until the following month.

Telstra’s chief financial officer, John Stanhope, says the “app cap” will minimise the shock customers experience when they receive a large and unexpected bill.

“It [app cap] stops the charge, but it also stops the service,” Stanhope says.

Customers who use the internet service will be inconvenienced by the mobile internet barring, but businesses with mobile internet advertising will be hit particularly hard by the “app cap”.

Telstra has advised the “app cap” is not expected to affect basic SMS services. SMS has already proved to be a reliable and cost effective way of interacting with customers. Customers now have greater incentive to keep a cap on bills by using SMS rather than mobile internet.

Traditional and digital advertisers are now turning to SMS mobile marketing to retain and increase numbers. The mobile marketing company TXT2GET has been offering advertisers mobile keywords as an alternative method of marketing to improve company and customer interaction.

“By using SMS keywords in advertising a marketer can double or triple responses to advertising. It also helps them measure what’s WORKING and what’s not,” says TXT2GET’s Australian Country Manager Andrew Campbell, “Sydney’s talkback radio station 2UE was able to increase audience interaction by using SMS. They asked listeners to enter a competition by texting 2UE to 19 33 33. By the end of their 7-day campaign, over 1000 entries were received, more than double the usual response.”

With Telstra’s internet barring, filling an entry form online or even accessing a website on a smartphone will not always be possible. But the unaltered SMS service will mean Telstra’s 1.6 million smartphone users will still be able to enter competitions, receive mobile coupons, and access giveaway campaigns using TXT2GET keywords.

Learn more about mobile marketing. Stop by TXT2GET where you can sign up for a Free Trial and see the benefits for yourself.

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