CMG hails MMS success

CMG, one of the world's largest providers of SMS equipment, claims it is well placed to take advantage of MMS, despite fears that it will not be able to repeat its success in the next generation mobile market.

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By  Philip Fenton Published  May 22, 2002

CMG claims it is succeeding where text messaging rival Logica is failing by signing contracts with mobile operators for multimedia messaging products.

Shares in both CMG and Logica have fallen sharply this year over fears that neither company will be able to repeat its success in text messaging in the next generation mobile market.

Logica currently holds around 50% of the global SMS system market and rival CMG around 31%. Multimedia messaging, or MMS, is widely seen as the successor to SMS messaging, but both companies are facing strong competition from network operators who are determined not to miss the boat a second time around.

Logica was forced to issue a profits warning last week because of weak sales in its mobile business, but CMG claims that trading continues to be within its expectations.

Cor Stutterheim, chairman, told the group's annual general meeting that it had received 12 firm orders for MMS products resulting in "significant revenue growth" for its Wireless Data Solutions business.

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