While many mobile phone users are familiar with short message service (or text messaging), not everyone is aware of the difference between that and premium SMS. There are different type of SMS used for different mobile communication reasons. Premium SMS is more business oriented than for personal use.
SMS messaging is also known as text messaging, which most mobile phone users are now familiar with since the technology has taken off as one of the most wide-spread forms of communication. However there are different reasons to use SMS messaging. For some, text messaging is a quick and easy way to get a simple message across to a friend, family member or co-worker. For others text messaging can be used as more of a tool to send out in mass to a list of contacts. This is great for making announcements, sending jokes and forwards similar to email, etc. However, premium SMS messages are used for a slightly different purpose. Some of these short messages may be used to provide the premium rate services to subscribers of a telephone network.
Premium SMS – How it Works:
Mobile terminated short messages, or premium SMS messages are typically used to deliver digital content like news alters, financial information, ring tones, jokes, logos and more. Many companies have capitalized on premium SMS by offering services like jokes, psychic readings, horoscopes, ring tones, etc. Since the development of premium SMS messages in 1998, the industry has now grown in the billions of dollars. Some companies are allowing premium SMS for payment of some services like movie tickets, public transportation tickets, ATM, ordering online, etc. The mobile phone carrier will subscribe to the service by texting in an opt-in message or short code number to begin receiving the messages from the company. This usually enrolls the mobile phone carrier into receiving the service and committing to pay for the messages. Typically premium SMS companies will offer an opt-out option allowing the mobile phone owner to opt out of receiving and paying for the subscription at any time.
To get technical, the value-added service provider who provides the content does so by submitting the message to the mobile operators SMSC using a TCP protocol. This may be similar to the short message peer-to-peer protocol (SMPP) or the External Machine Interface. The SMSC then delivers the SMSM message using the mobile terminated delivery procedure, which is a similar process to the basics of sending a regular SMS message. However, with premium SMS, the subscribers are charged extra to receive this type of content. These premium SMS services cost more to operate, so the subscriber is committing to pay more for the service above the standard text messaging rates. The revenue made off of these premium SMS rates then is divided typically between the value-added service provider and the mobile network operator. The submission to the SMSC is then usually managed by a third party.
Other Premium SMS Services:
Similar to the above mentioned premium SMS services, other premium SMS are used for services like donors message service. Services like this will collect donations via text message for certain humanitarian causes like disaster relief, emergency services, red cross donations, etc. These services have been especially beneficial in recent months like with the recent devastating earthquake in Japan. Services like these work by the phone owner texting in to donate using a short code. The amount the person pledges to donate will then be billed to the mobile phone provider.
Voting via premium SMS services are also becoming popular with many companies that offer the service. Voting for television, or televoting, to TV shows or to place votes on opinion polls are becoming commonly used premium SMS services. If you are a business looking into offering premium SMS messaging, it is a good idea to look into text marketing as a viable option or other premium text messaging services online. If you are a consumer and just looking for the basics on how premium SMS services work, it is important to note that you have rights as a consumer to opt-in and out of these premium SMS services at your own discretion.