SMS messaging in
Ireland is extremely popular; in 2001 over 1 million messages were sent daily on the
Eircell network, for example (up 4,000% in 1999). Given the comparable customer base of Eircell's chief competitor
Esat Digifone, we can arrive at a figure of almost 2 million SMS messages in total per day (for a population of 3.5 million).
At roughly 10p each (excluding tax), this means around £40m annually for sending less than 1% of voice traffic. Eircell even has such nerve that, a few years ago when its network blanked out completely for several days due to overloading, it offered all its customers free SMS messaging in compensation. Of course this is just like cigarette companies offering free packets to schoolkids for one day - the company got new SMS addicts.
Including tax, SMS messages with Eircell are 12.5p, so I'm sure the Government doesn't sneeze at £4m annually from SMS tax, either.