SMS (short messaging service) is now offering a platform for doing business.

You can buy chocolates, cold drinks and pay traffic fines on your cellphone. You will be billed for them at the end of the month along with your phone charges.

BPL Mobile has tied up with Cadbury's to set up 100 machines dispensing chocolates to its cellular subscribers. The subscriber has to send an SMS specifying what he wants. The machine confirms the transaction on SMS. The subscriber accepts the confirmation and the machine dispenses.

The chocolates are charged for in the telephone bill and passed on to Cadbury. The cellular telephone operator makes Rs 3 on the two SMS the subscriber sends for a transaction. The customer does not have to hunt for change, a common sight near vending machines.

"With revenue from voice traffic slowing we have to look for other streams. SMS is a success and we are cashing in on its popularity. The possibilities for this technology are huge," Krishna Angara, chief operating officer, BPL Mobile, Mumbai says.

BPL is tying up with Pepsi for setting up more such vending machines. It is also exploring alliances with coffee and tea vending companies.

BPL is talking to the Mumbai police to allow subscribers to pay traffic fines on their cellphones. In this case, the offender will send an SMS to a specially designed server.

"Most offenders want to pay the fine rather than bribe the policeman. The Mumbai police wants to clean up the department. This technology will help," says Angara.