The SMS concept was developed in the Franco-German GSM cooperation in 1984 by Friedhelm Hillebrand and Bernard Ghillebaert. The GSM is optimized for telephony, since this was identified as its main application. The key idea for SMS was to use this telephone-optimized system, and to transport messages on the signalling paths needed to control the telephone traffic during periods when no signalling traffic existed. In this way, unused resources in the system could be used to transport messages at minimal cost. However, it was necessary to limit the length of the messages to 128 bytes so that the messages could fit into the existing signalling formats. Based on his personal observations and on analysis of the typical lengths of postcard and Telex messages, Hillebrand argued that 160 characters was sufficient to express most messages succinctly.

SMS was the most widely used data application, with an estimated 3.5 billion active users, or about 80% of all mobile phone subscribers at the end of 2010. The term SMS is used for both the user activity and all types of short text messaging in many parts of the world. SMS is also employed in direct marketing, known as SMS marketing. As of September 2014, global SMS messaging business is said to be worth over USD 100 billion, and SMS accounts for almost 50 percent of all the revenue generated by mobile messaging.

SMS as used on modern handsets originated from radio telegraphy in radio memo pagers using standardized phone protocols. These were defined in 1985 as part of the Global System for Mobile Communications series of standards as a means of sending messages of up to 160 characters to and from GSM mobile handsets. Though most SMS messages are mobile-to-mobile text messages, support for the service has expanded to include other mobile technologies, such as ANSI CDMA networks and Digital AMPS, as well as satellite and landline networks. (source : wikipedia)

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