How safe is SMS?

How safe is SMS? I am sending important and confidential commercial information to my associates and colleagues. Is it possible to hack SMS, either by way of entering into the SMSC/mobile operator or by someone other than the intended recipient accessing the SMS?
There have been various security vulnerabilities uncovered in SMS over the years. There are not only physical security vulnerabilities like you mention above, but technical ones as well. SMS is not necessarily designed to securely communicate confidential info so you may wish to look for an alternate solution, which may include PDAs using an encrypted connection via a wireless LAN.
This was first published in May 2004

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