Web-based search engines such as Google (NSDQ: GOOG) may eventually dominate the mobile internet but, for now, with the mobile web still difficult to browse, SMS-based search services such as the UK’s Any Question Answered (AQA) aren’t doing such a bad business, reports BusinessWeek.

The four-year-old start-up founded by ex-Symbian chief Colly Myers, who sunk $2 million of his own money into it, charges £1 ($2.06 dollars) to answer any question a customer sends it via text message. The service isn’t particularly novel and, in fact, there is a competing service called Textperts in the UK. In the US, similar service 4Info recently received $15 million in funding from the likes of Gannett (NYSE: GCI) and Peacock Equity, the JV between GE Commercial Finance’s Media, Communications & Entertainment business and NBC Universal. Moreover, SMS search is popular in China, where Google recently launched a text-based search service that competes with several local rivals. But AQA has grown “remarkably” on very little publicity, according to analysts. Last year, revenues climbed to $5.7 million, up sharply from $846,000 in 2005. It earned $413,000 in pretax profits in 2006, after recording a loss the year before. Overheads are low--AQA has amassed a network of around 1,000 freelance researchers, who get £0.30 ($0.60) for each correct answer they provide. The remaining (£0.70) ($1.40) is split between AQA and mobile networks. AQA doesn’t have to deal with billing, as the service appears on its bill from the operators or gets deducted from their pre-paid balance.

Myers tells Businessweek that his service answers some 16,000 questions a day, and believes the figure will grow to more than 50,000 daily by 2008. AQA typically answers 75 percent of questions within five minutes, and 95 percent within half an hour, though it does not set a response deadline. Of course, some of the questions sent in are silly ones—such as “what color underwear am I wearing?” but AQA has been fielding a lot of Yellow Pages type queries on where to locate a certain business and Myers expects this line of questioning to grow. To expand the business, AQA is rolling out in Germany and Italy next year. It also has plans to offer AQA as a custom SMS answering service for firms. For example, an airline could hire them to answer questions about flight delays or connections—usually done through more expensive call centers.

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