Programmatic Lunch

mBlox Sells PSMS Business to OpenMarket

David Murphy

mBlox is selling its Premium SMS (PSMS) business in the US, UK, Ireland and Australia, to OpenMarket, but is retaining control of the PSMS business in France, Spain and Finland.

A source who knows the messaging market well told Mobile Marketing it was possible that OpenMarket would not have been interested in the French, Spanish and Finnish parts of the business, since the US, UK, Ireland and Australia represent the biggest markets for PSMS, or potential market in the case of the US.

mBlox CEO Tom Cotney said that by divesting the Premium SMS business, mBlox could continue to increase investment in its core business of messaging and mobile engagement between enterprises and consumers.

"In the future, our Premium SMS customers` needs will be better served by OpenMarket in this segment of the industry, as we focus our resources in these countries more deeply in the business-to-consumer segment,” said Cotney. “The move also allows us to give our carrier partners in these regions more proactive support, as we work with them to develop and deploy the next generation of mobile engagement solutions."

Premium SMS customers served by mBlox will be transitioned to OpenMarket`s network over a period of three to five weeks beginning next month. Cotney said that mBlox anticipated no disruption in customer service.

"This is a positive move for the clients we are transitioning to the stewardship of OpenMarket for their PSMS delivery. OpenMarket provides services that we do not offer in this space today," said Cotney.

mBlox processed over 5.3bn messages last year in the enterprise-to-mobile business. The company says it will continue to offer and improve its two-way messaging services, using both long numbers and shortcodes in all countries, and as a consequence will maintain its existing direct connections and carrier contracts.