Challenges and Solutions for Developing the SMS Industry in a Competitive Economy: From Strengthening Technical Infrastructure to Regulatory Reform
Date: January 6, 2025
The CEO of the knowledge-based company Madiana emphasized the vital role of the SMS industry in economic growth and business communication development, highlighting the need to facilitate access to service lines, remove regulatory barriers, and reform existing structures to ensure fairness and competition in this sector.
Sadegh Mohammadi, CEO of Madiana, noted that economic growth and the expansion of companies like Madiana—active in customer communication—are interdependent. He explained, “As the economy moves toward greater growth and competitiveness, businesses’ need to communicate with customers increases, which in turn drives the growth of companies like ours.”
He added, “On the other hand, policymakers can support growth in upstream goods and services production by targeting development in the customer communication industry.”
Mohammadi stressed that strengthening technical infrastructure and easing regulations are the most critical supports the government can provide. He pointed out a major issue in the SMS sector: “The allocation of service numbers to businesses has essentially come to a halt. Facilitating access to these service numbers not only improves business-customer communication but also increases accountability, as companies become more responsible for bulk and promotional messaging.”
The CEO explained that currently many companies—especially small and medium-sized businesses—use shared lines to send messages, and violations by one business can cause problems for other customer communication service providers.
He believes there is a significant gap from the ideal situation regarding fair access to SMS technical opportunities and other tools. “Some companies have full access to service lines or special privileges, while many others, particularly medium and small businesses, lack these opportunities.”
Mohammadi identified another major obstacle to the SMS industry’s economic growth: price controls. He stated, “Given the presence of strong competitors and players providing services to businesses, there is already a highly competitive environment. I am confident that free pricing will encourage investment and both quantitative and qualitative growth among service providers, with no significant concerns about protecting user and consumer rights.”
He also noted that various governmental bodies influence the SMS industry based on their own perspectives and concerns, but the outcomes have often been damaging. “What is essential,” he said, “is reforming the regulatory structure. Establishing a working group under a government body with active industry members would resolve many of the current coordination problems and challenges.”