Decision - Real Time Bus Information via Text Message/SMS (Short Messaging Service)

(1)       That the Cabinet Member for Environment approves the implementation of the SMS at a charge of 25p per message for the service ensuring that the service does not create financial implications for the council.  The 25p is in addition to a standard text message charge.

(2)       That the Cabinet Member for Environment delegates to the Director of Environment authority to put in place the necessary arrangements to implement the SMS scheme.

Funding for marketing, advertising and incorporating SMS text numbers at the bus stops will be required therefore the recommendation is to charge the minimum 25p per message, which may help support the marketing strategy.  However, it is important to note that any revenue made from this service is shared regionally.  Kizoom estimate that a region with 1,000 bus stops should generate revenue of approximately £1,000 per annum, which would be shared equally between all those in the SELTA region not just the city council. Within the UK, 80% of the local authorities with SMS charge their users for the service.

The alternative to charging for the SMS service is to provide the service free of charge to all users.  It has been difficult to ascertain from the local authorities researched whether the usage of the service is increased if provided free to user or charged at 25p per message.  For instance, Wales provide the service free of charge and provide a mixture of RTI and timetable information, but the Welsh Assembly Government meet the annual revenue costs of approximately £13,000.  Hampshire charge for their SMS service, therefore the annual revenue costs of £6,000, which is the agreed charge via the regional Traveline service, could become cost neutral if the revenue for text charges is large enough within the region.