SOURCE: TeleCommunication Systems, Inc.

February 07, 2007 09:14 ET

TCS' Text Messaging Shows Strong Growth

60% Increase in One Year Illustrates Continued Adoption of Text Messaging

ANNAPOLIS, MD -- (MARKET WIRE) -- February 7, 2007 -- TeleCommunication Systems, Inc. (TCS) (NASDAQ: TSYS), a global leader in mission-critical wireless data communications, today announced its subscriber messaging usage rates increased 60% over 2005 with record high text messaging volume achieved on New Year's Eve. Following the Company's recently announced 25 million subscriber registrations for personalized text messaging, this latest messaging milestone confirms the predicted growth in Short Messaging Service (SMS) volume.

TCS' next generation smsExpress™ solution introduced last year has assisted wireless carriers in riding the growth wave in text messaging by providing high-capacity performance via optimized first delivery attempt (FDA). TCS' smsExpress is a proven and cost-effective solution that comes at a time when carriers are reaching the renewal cycle on their legacy Short Message Service Centers (SMSCs) much sooner than anticipated due to the rapid up-tick in demand. TCS' next-generation SMSC solution provides dual-mode delivery of text messages over SS7 and Internet Internet Protocol (IP) devices. The TCS SMS platform moves traffic from SS7 networks to wireless IP. This interface marks TCS' foray into the IP Multimedia Subsystem (IMS) arena for SMS delivery over mobile broadband devices.

"This additional growth landmark signifies operators' continued use of TCS' next-generation SMS platform to address today's rapid messaging growth with a smooth migration path to IMS," said Tim Lorello, Senior Vice President and Chief Marketing Officer of TCS. "The interface allows the billions of SMS messages that now occur to be transported more efficiently, increasing wireless operators' margins."

SMS voting for interactive television shows is a common example of "bursty" outbound traffic that TCS' smsExpress has proven to handle effectively. Messaging applications such as voting provide carriers a means for increased Average Revenue Per Unit (ARPU) via premium SMS. In addition, smsExpress facilitates the effective routing of messages, improving delivery success rates.


TeleCommunication Systems, Inc. (TCS) (NASDAQ: TSYS) produces wireless data communications technology solutions that require proven high levels of reliability. TCS provides wireless and VoIP E9-1-1 network-based services, secure deployable communication systems and engineered satellite-based services, and commercial location applications, like traffic and navigation, using the precise location of a wireless device. Customers include leading wireless and VoIP operators around the world, and agencies of the U.S. Departments of Defense, State, and Homeland Security. For more information, visit

This announcement contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities and Exchange Act of 1934, as amended.

These statements are based upon TCS' current expectations and assumptions that are subject to a number of risks and uncertainties that would cause actual results to differ materially from those anticipated.

The actual results realized by the Company could differ materially from the statements made herein, depending in particular upon the risks and uncertainties described in the Company's filings with the Securities and Exchange Commission (SEC). These include without limitation risks and uncertainties relating to the Company's financial results and the ability of the Company to (i) reach profitability as early as anticipated, (ii) continue to rely on its customers and other third parties to provide additional products and services that create a demand for its products and services, (iii) conduct its business in foreign countries, (iv) adapt and integrate new technologies into its products, (v) expand its business offerings in the new wireless data industry, (vi) develop software and provide services without any errors or defects, (vii) protect its intellectual property rights, and (viii) implement its sales and marketing strategy.

Existing and prospective investors are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. The Company undertakes no obligation to update or revise the information in this press release, whether as a result of new information, future events or circumstances, or otherwise.

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