Logica Forecasts Dramatic Rise in Mobile Messaging

Business Wire, June 13, 2000

Business Editors

LONDON--(BUSINESS WIRE)--June 13, 2000

Logica today forecast that within three years mobile telecoms operators will be sending 100 billion short messages per month, a predicted 170% per year increase over current levels.

This rate of growth will even outstrip Internet usage over the same period and will see the average mobile phone user receiving three short messages every day.

Higher than existing forecasts, Logica believes that one of the main drivers underpinning this growth is the fundamental role which SMS will play in the introduction and acceptance of new mobile telecoms technologies such as WAP, GPRS and 3G.

Mike Short, BT Cellnet and Chairman of the GSM Association's Data Task Force, explains, "In the past year, GSM operators have seen astonishing growth in the volumes of SMS traffic in their networks, achieving more than 5 billion messages per month in March 2000. We expect them to achieve more than 10 billion by the end of the year 2000, and are very pleased to see that Logica, as the telecom industry's leading SMSC provider, is preparing to support this phenomenal growth globally for many years to come."

"The introduction of packet technologies such as GPRS and 3G and Internet browser capability such as WAP will have a dramatically positive effect on SMS volumes. As experience in leading markets such as Japan already demonstrates, operators expect SMS to complement perceived weaknesses in packet technology. In the WAP environment SMS allows customers to download Internet content at the same time as holding a voice conversation," stated Kevin Duffey, Logica's group telecoms director.

Duffey continued, "We also recognize that the potential of SMS in the U.S. market is yet to be realized. When U.S. operators offer mobile originated messaging and other capabilities that are common in Europe, the growth in demand for SMS will be exceptional."

Growth of SMS usage will vary considerably by market region, as shown below. Note that figures are billions of SMS sent per month.

SMS SENT IN MONTH (BILLIONS)      DECEMBER 1999      DECEMBER 2002
----------------------------     ---------------    ---------------
 EMEA                                  2.0                24
 Japan                                 2.0                36
 Asia Pacific                          1.0                13
 North America                         0.2                10
 South America                         0.2                17
============================     ===============    ===============
 World                                 5.4               100

Note: All figures exclude voicemail notification over SMS.

NOTE TO EDITORS:

Founded in 1969, Logica plc is a leading international computer consultancy, systems integration and software company. Logica's clients operate across diverse markets including telecommunications, finance, energy and utilities, industry distribution and transport, public sector and space. Logica has over 8,500 staff in 23 countries worldwide and is listed on the London Stock Exchange where it is part of the FTSE100 index of the largest UK listed companies.