There are many different benefits and disadvantages in light of the new 10DLC requirements in the U.S., including potential fines for breaching codes of conduct and filtering, throttling or blocking of SMS from organizations who don't meet requirements or have a low Trust Score as determined by The Campaign registry (TCR). How can your organization navigate these challenges and maximize the benefits of 10DLC use for text messaging campaigns in 2022?
What Is Changing for SMS Messaging
SMS for business is shifting away from short code text messaging and moving to a more regulated environment where local area codes (10 Digit Long Code or 10DLC) reign supreme. The proliferation of spam SMS, fraudulent text, and poor hygiene across brands using online messaging and text-based campaigns has forced wireless phone carriers to demand higher standards across the industry.
Application to Person (A2P) messages sent by organizations using a 10DLC for messaging are subject to new regulations, registration requirements and fees in order to continue using text messaging campaigns to support their brand, political machine or charity.
A2P 10DLC registration with TCR is required by all major carriers (including AT&T, Verizon, T-Mobile and Sprint), and unregistered SMS traffic may be blocked, throttled or filtered heavily, making compliance a must for any company wishing to leverage SMS marketing going forward.
Fees associated with the A2P 10DLC service vary by carrier but in most cases range from $40-$60 as a one-time fee per carrier, followed by a similar fee for each campaign. If a campaign expires, it must be reregistered as a new campaign and the fee paid again.
Fortunately, registration with TCR can be accomplished either by connecting through an API or by depending on a Campaign Service Provider (CSP) to do the heavy lifting. If you are a Swift SMS gateway customer who is affected by these changes, we can gather the necessary information from you about your brand and campaigns and help complete the registration processes. The fees are passthrough and separate from your pricing structure with us.
Benefits of the New Regulations
There are many benefits to the new regulations around 10DLC text messaging campaigns. Many businesses have been hurt by the high level of spam messages and unwanted texts the average consumer receives daily. When consumers are overloaded with texts they tend to shut off and disengage and may go on an "unsubscribe" spree, deleting access for even brands they truly wish to interact with.
By making brands register both by brand and by campaign, and associate their texting habits with specific use cases, security around business texting is increased. The required vetting of each brand and the assigned Trust Score leads to better deliverability, as SMS traffic from trusted brands can be delivered without obstacles.
Consumers get to avoid unwanted messages and have a better user experience (UX), since they can see that a text is coming from a local area code. Brand registration adds transparency and is a show of good faith to consumers, who won't have as many concerns that an incoming text could be fraud or spam.
Disadvantages of 10DLC A2P
For companies that depend on high-volume text messaging, the new 10DLC registration requirements and fees may feel like an annoyance. You must register your businesses and wait through the application approval process.
If you are an Independent Service Vendor (ISV) there could be delays while the brands you represent are vetted and assigned their Trust Scores. If you run an extremely high volume of messages (more than 3,000 per day) you may need to consider setting up separate campaigns to simplify matters.
This can add to monthly costs, and if you don't think long term, you can find yourself in a constant cycle of having campaigns expire and being forced to register them again and pay the associated fee for "new" campaign registration.
In addition, if you run afoul of codes of conduct put in place by a mobile carrier like T-Mobile, you could face a fine of up to $10,000. This means you need tight security and oversight for your campaign content, to ensure you don't violate any standards.
How to Make the Most out of 10DLC
The main thing to consider as you move forward into the future of SMS marketing and business texting is that shared short codes are on their way out. The sooner you embrace 10DLC and accept status as an A2P, the sooner you can start figuring out how to leverage the new text messaging landscape to your benefit.
Mind Your Trust Score
Your Trust Score determines your throughput (the number of messages you can send in a specific time frame), so make sure all of your ducks are in a row before you request 10DLC registration. If you think your assigned Trust Score is too low, you can pay a one-time fee and ask for an appeal.
Understand Your Campaign Use Cases
Another thing that impacts throughput is your use cases. If you have a charity or a political campaign to run, you may qualify for a special use case, but you'll have to apply and wait for approval. If you have standard use cases, you can opt for a variety of campaign designations, including mixed-use cases if you run small campaigns and want to maximize your impact by combining goals.
Minimize Campaign Disruptions by Being Proactive
Jump right in and get the process started as soon as possible to avoid potential derailment of your SMS marketing strategy. If you use U.S. carriers, you need to be on these changes immediately.
Budget for the Costs
While the costs for 10DLC brand and campaign registration aren't unduly high, they will make an impact on your bottom line if you depend heavily on high volume SMS traffic to support your company goals. Make sure you bring this up at upcoming budget meetings.
Changes to text messaging protocols don't have to be disruptive to your company. Contact us if you have any concerns about your campaigns or need registration assistance. If you are considering beginning to use SMS messaging in 2022, ask us for a free demo.