The new year has started with major text messaging changes with surcharge fees levied by carriers and AT&T ending Shared Short Code. Internationally, Telcos are finally sanctioning 10 Digit Longcode (10DLC) as the way to send Application to Person (A2P) traffic, but having no way to extract host fees, Telcos are levying surcharge premiums above their transit fees to accept this traffic. Canadian carriers have been among the first to levy these premiums, with Verizon stateside soon following.
10DLC Long Code is Here To Stay
It is imperative with 10DLC being the medium of choice for critical A2P, all stake holders combat fraud and attack SPAM. Swift SMS Gateway is committed to doing this:
- Swift SMS Gateway is upholding our route quality avoiding Grey Route operators, who are known to skirt carrier surcharges by using modem pools.
- Swift SMS Gateway continues to segregate mass-marketing related directly to Short Code. Sales related traffic does not belong in the same channel as critical A2P and alert messaging. A2P SMS has become a driver of the Internet of things.
AI (Artificial Intelligence) providing pre-scripted automated response, uses texting as a go-to medium for communication. Gartner stands by their earlier prediction that by 2020, 85% of communication back will be through automated bots. This is not SPAM. It’s banking notifications, booking confirmations, system alerts, pins, and security authentications being demanded by a public that is mobile and demanding it on 10 digit long code (10DLC). While Telcos have coined such traffic as “transactional”, many in the industry have echoed the confusion expressed by users of this critical business communication. Such a term is too easily confused as just commerce related, which of course it is not. Regardless, Telcos acceptance of this is a win, although it has forced a big change in recognizing the difference between sales related marketing and critical A2P traffic.
AT&T Ends Shared Short Code
In the States, AT&T is ending Shared Short Codes. The announcement is an effective death nail effectively aimed at attacking SPAM. Due to AT&T’s respective market size other Telcos are sure to follow sooner, or later. This forces legit marketing traffic to dedicated Short Codes. SPAM has plagued the Short Code channel, and because shared services have had a cumbersome opt-in/opt-out process, the management of such shared services has resulted in far too many abuses. In Canada Shared Short Code is still being offered. This may change in the near future.
Surcharges are placing added cost on business communications that enjoyed A2P traffic 10DLC at a fraction of the cost of any short code service, while getting full reach to all Telcos and no need for keyword management. However, 10DLC remains the superior service over Short Code despite Telco surcharges. It is expected in the industry that A2P Carrier Surcharges on 10DLC ensures acceptance of legit traffic and improves deliverability.
There is little doubt these changes are fuelled by transactional traffic and authentication messaging. It is estimated to grow 20% by 2022 exceeding 2.7 trillion messages, while Grey Route traffic will fall 11% over the next 5 years, according to Juniper Research.
As Telcos enforce surcharges on 10DLC in Canada and move marketing towards Dedicated Short Code in the US, business’ message costs are being forced higher. We predict these changes will be adopted by all carriers. The promise is to reduce SPAM and improve deliverability. If you have further questions and concerns about these changes and how they may impact your business’ text messaging, please contact your sales representative here and we will be pleased to assist you and your text message requirements. Swift SMS Gateway is committed to assuring you of the best text message service at all times.