MX Telecom Premium SMS Service - USA

Overview

MX Telecom offers Premium SMS connectivity to all of the major US carriers. Various aspects of implementing Premium SMS in the US are detailed below.

Tier 1 Carriers	Subs (Mar 2006)	Premium SMS
Cingular Wireless	54.1 M	Yes
Verizon Wireless	51.3 M	Yes
Sprint Nextel	39.7 M	Yes
T-Mobile USA	21.7 M	Yes

Other Carriers

The 4 Tier One Carriers are listed above. They are the largest four carriers in the USA and are considered to have a national, rather than a regional, presence. They have between them approximately 80% - 85% of the total market. However there are further two tiers of smaller carriers, comprising many other companies. Some of these have signed up to the Common Short Code initiative. The most significant of these is Alltel, a major player with about 10 M subscribers, to whom MX Telecom is connected. Please contact us or check back for more information if you are interested in specific regional or local carriers.

Contents

Before launching a Premium SMS Service in the USA, the following issues need to be understood, addressed and implemented:

• "Opt-In" and "Opt-Out" Nature of a Reverse Billing Service
• Premium SMS Users need to be on the correct Carrier
• Mobile Terminated versus Mobile Originated Reverse Billing
• Keyword or Short Code Approach?
• Incomplete Revenue Outpayments & Separate Accounts
• Advertising & Pricing Issues with Premium SMS Services
• Billing Cycles and Contract Duration
• How to run a "Subscription" Premium SMS Service
• How to run a "Two-Way" Premium SMS Service
• 8-Bit Smart Messaging and Multi-Part SMS issues
• Technical Connection Issues and Limitations
• Codes of Practice
• Account Setup
• Service Level Agreement and Support

"Opt-In" and "Opt-Out" Nature of a Premium SMS Service:

• Legal Issues

  You must ensure that each User receiving Premium SMS Text Messages has "Opted-In" for receiving Premium SMS Text Messages. You must also ensure, that the User can easily "Opt-Out" of such a service as well.

• Best Implementation Strategy;

  Users need to initially send an SMS Text Message into a Short Code "Send-In" number. (For sending in this SMS Text Message, the User will pay their normal text messaging price). This confirms a user has "Opted-In" for the service you are offering. With a User's consent, if you are running a subscription service, you are then entitled to keep on sending Premium SMS Text Messages to that User, as long as the User can somehow "Opt-Out" of the service at any stage. At a minimum the user must be able to "Opt-Out" by sending an SMS Text Message "Opting-Out" of your service or emailing your customer support address or, in certain cases, calling your live customer support toll free number.

• Technical Restrictions

  In order to enforce the above, the MX Telecom SMS Server Premium SMS Edition will not allow a Premium SMS to be sent to any User, unless they have sent in a Normal Text Message to your Short Code or Shared Keyword Short Code.

Need to ensure the User receiving Premium SMS Text Messages is on the Correct Carrier:

• Legal Issues

  You must ensure that each User receiving Premium SMS Text Messages is on the correct Carrier. For example, if a User is a Cingular subscriber, but signs up to your service which only covers T-Mobile users, then you must ensure you do not send them T-Mobile Premium SMS Text Messages. No revenue will be generated from that user, and you will be charged for sending that text message.

• Best Implementation Strategy

  The only way of confirming 100% that a user is on a certain Carrier in the US is if they can send an SMS Text Message into a Short Code that is only accessible from their carrier. In the US each carrier has its own short codes, which can only be accessed by users on that particular carrier. For example, users on the Cingular network cannot send a Text Message into a T-Mobile short code.

• Technical Restrictions

  In order to enforce the above, the MX Telecom SMS Server Reverse Billing Edition will not allow a Premium SMS to be sent to any User, unless they have sent in a Normal Text Message to your Short Code or Shared Keyword Short Code.

Mobile Terminated versus Mobile Originated Premium SMS:

• Issues

  All US carriers currently offer Mobile Terminated (MT) Premium SMS. This means the end user is billed for receiving Premium SMSs.

  In future some carriers may also offer Mobile Originated (MO) Premium SMS. This means the end user is billed when they send into a Premium SMS Billing Short Code.  

• Best Implementation Strategy  

  Mobile Terminated Premium SMS offers far more flexibility than Mobile Originated Premium SMS. The main reason for this lies with the ability to run subscription based services. For example, Users need only send in one normal SMS Text Message with the word "Subscribe", and receive Premium SMS text messages on their cell phone each day for the rest of the year. Users do of course, need the ability to unsubscribe to a service should they so choose.  

• Alternative Solutions

  If running a competition or voting service, where the service only requires a user to send in a Text Message, Mobile Originated Premium SMS would be the preferred option. However, using Mobile Terminated Premium SMS, you can simply reply to the User who has voted / entered a competition, with a Premium SMS Text Message informing them that their vote / entry has been received.

Keyword or Short Code Approach?:

• Legal Issues

  The Canadian carriers only permit the use of dedicated short codes, where each content or service provider must obtain their own Common Short Code for their service.

• Best Implementation Strategy

  Common Short Codes are leased from the Common Short Code Administration (CSCA), administered by the CTIA. The short code registration process is handled online at www.usshortcodeas.com. Either MX Telecom can register your short code on your behalf or you can register it directly. When your short code is registered, MX Telecom will then submit your service for approval by the carriers, after which time it will be provisioned.

• Technical Restrictions

  Leasing a dedicated Common Short Code ensures that all SMS traffic will be routed to your application and all revenue generated from that short code will be directly attributable to your service.

Incomplete Revenue Outpayments & Separate Accounts:

• Legal Issues

  Due to certain billing problems at the Carrier level, certain Carriers do not always outpay 100% of the expected Premium SMS Revenue generated. Operators will only outpay revenues that they claim they have received themselves. All Premium SMS contracts take account of this issue.

• Best Implementation Strategy  

  By having a dedicated Short Code, you have your own billing account with each operator, meaning you have full visibility of statistics for all SMS messages sent from that short code.

• Technical Issues

  A Premium SMS account, offers live online access to logs detailing sent messages along with a timestamp and the destination cell phone number are available to each account. Logs also include the SMS messages themselves, as well as your optional sub account details, information notes, and IP addresses.

Advertising & Pricing Issues with Premium SMS Services:

• Legal Issues

  All Message Prices need to be clearly identifiable to Service Users on any promotional material. Users also need to be fully aware of the number of SMS Text Messages they will be receiving, as well as how to "Opt-Out" of a Premium SMS Service.  

• Best Implementation Strategy

  All advertising needs to be very clear and accurate and in full compliance not just with applicable laws and standards, but also the latest carrier guidelines as communicated by MX Telecom.

Billing Cycles and Contract Duration:

• Legal Issues

  Billing cycles are based upon Calendar months. Outpayments for each Calendar month are paid 45-90 days in arrears. The standard minimum Contract duration is 12 Calendar months.

How to run a "Subscription" Premium SMS Service:

• Legal Issues

  You must ensure that each User receiving Premium SMS Text Messages as part of a Subscription Service, is fully aware of the cost and frequency of the Premium SMS Text Messages. The User needs to have "Opted-In" to the service, as well as have the ability to easily "Opt-out".

• Best Implementation Strategy

  Premium SMS is an ideal solution for "Subscription" based services. Unlike Premium Rate numbers, a user can send one single SMS into a Short Code with the word "SUBSCRIBE", and receive a Premium SMS Text message every day for the rest of the year. The onus is therefore upon the user to unsubscribe from a service, rather than keep on subscribing each day for a Premium Service.  

• Technical Restrictions

  The MX Telecom Premium SMS Service will not normally allow a Premium SMS to be sent to any User, unless they have sent in a Text Message to your Short Code.

How to run a "Two-Way" Premium SMS Service:

• Legal Issues

  You must ensure that each User receiving Premium SMS Text Messages as part of a standard "Two-Way" Premium SMS Service, is fully aware of how expensive the resulting Premium SMS will be. Because standard "Two-Way" messaging only involves a single reply to an information request, there is no need for an "Opt-out" requirement, as only one SMS response is generated.  

• Technical Restrictions

  The MX Telecom Premium SMS Service will not normally allow a Premium SMS to be sent to any User, unless they have sent in a Text Message to your Short Code.

8-Bit Smart Messaging and Multi-Part SMS issues:

• Legal Issues

  SMS Text messages have a maximum limitation of 160 characters. For messages that are longer than this, the SMS Server automatically sends a multi part series of SMS Messages. The SMS Server is also able to send certain 8-bit Smart Messages (such as Ringtones, Group Graphics, EMS, Picture Messages and Operator Logos) to certain Nokia, Ericsson and Motorola cell phones, many of which are multi-part SMS Text Messages. Note that this is only possible on some US carriers.

• Best Implementation Strategy

  It is important to check the number of SMS Text Messages that are required for each kind of Smart Message. Many Smart Messages vary in length (especially ringtones, whose length is based upon the duration of the tune). US carriers will approve such services on case by case basis.

• Technical Restrictions

  Please take a look at the Smart Messaging section which details Smart Messaging compatibility and technical issues.

Technical Connection Issues and Limitations:

• Legal Issues

  The MX Telecom Premium SMS Service will not normally allow a Premium SMS to be sent to any User, unless they have sent in a Text Message to your Short Code.

• Best Implementation Strategy

  All Premium SMS Services needs to be based around the concept of a User initially sending an SMS Text Message into a Premium SMS Short Code. All services must operate as approved and be compliant with the latest guidelines.

• Delivery Reports

  MX Telecom offers delivery notifications and confirmations of definitive delivery or otherwise of SMSs sent to cell phones, where made available by the Carriers.

Codes of Practice

The key point to remember when implementing a Premium SMS Service is the "Opt-In" and "Opt-Out" functionality Users need to have. As long as you can prove a User can subscribe and then unsubscribe to a service, the Carriers will have no issues. For concerns regarding implementation of a Premium SMS Service, please Contact Us

Account Setup

MX Telecom gateway accounts can be set up very quickly, however the Dedicated Short Code needs to be setup directly by each Carrier on their network. This involves going through a process of approval, provisioning and testing.

Service Level Agreement and Support

The MX Telecom SMS Server uses gateway connections into the heart of Mobile Network SMS Centres (SMSCs), providing high capacity, reliable, and fast SMS connectivity, direct to an end users cell phone. MX Telecom provides a complete solution, hosted, designed, developed and supported by MX Telecom.

Although MX Telecom can offer a Service Level Agreement (SLA) for the MX Telecom SMS Server Premium Service, the SLA only goes as far as MX Telecom delivering or receiving an SMS into or from a Carrier's SMS Centre (SMSC).  

About MX Telecom MX Telecom is a leader in wireless technology. MX Telecom offers an easily accessible gateway to data, voice and video messaging services including 2-way and premium SMS, multimedia messaging, interactive voice response, location-based services, video short codes, Internet and TV related solutions. For more information, MX Telecom can be reached on 1-877-MXTELECOM (+1 877 698 3532), or via email at sales@mxtelecom.com.