OpenMarket – April 11, 2019
The major US Carriers are set to nationally launch the long-awaited, carrier-supported A2P 10 DLC originators in May.
This is a landmark change for the A2P SMS messaging industry. Every US business that currently relies on shared US short codes and old-style US long codes to communicate with their audiences could be affected.
So here’s an update – including everything we’re able to share – based on our ongoing conversations with all the major US Carriers.
We’ll discuss what A2P 10 DLC is, where it sits in the market, why people should care about it, and what they should do next.
There’s a lot of information to navigate. But the OpenMarket team can help businesses find new ways to pivot and thrive in this changing SMS environment.
What is A2P 10DLC?
The new A2P 10 DLC originator has been specially designed and sanctioned for A2P messaging. It offers stability, delivery reliability, and security to businesses and their audiences. It also supports the volume messaging throughput that business use cases require.
The US long codes widely used by businesses were only ever designed for person-to-person (P2P) communications. They have low volume throughput and lack desirable security standards. Carriers consider them an unsanctioned SMS route.
Following the launch of A2P 10 DLC focused services, carriers are likely to step up efforts to remove this unsanctioned traffic from their business routes – using firewalls and other techniques based on machine-learning technology.
Businesses can’t be sure of the consequences of being caught using the old long codes. But in our view, there is a high risk that this traffic will be immediately shut down. Businesses might then be told to file their program to run on a sanctioned 10 DLC route.
Are US shared short codes being banned?
There’s been a lot of talk in the industry about the prospect of Carriers banning shared short codes following the A2P 10 DLC launch.
To Carriers, shared short codes represent a high spam risk. The fact that many businesses share use of the same short code makes them difficult to police.
But an outright ban seems unlikely. We believe shared short codes legitimately used by parent companies for individual businesses (like a chain of restaurants) could be exempt, but this would be at the discretion of the carrier. If you’re unsure, we can help. Let us know about the use cases you have running on your shared short codes and we can advise if they could be considered for exemption.
In October, AT&T listed specific use cases it will clear for shared short codes:
- Emergency notifications
- 2FA / OTP
- Transit alerts
- Job postings (if the message sender is doing the hiring)
Remember, other carriers may have longer or shorter lists.
Will I need a dedicated US short code?
Moving to a dedicated short code will be one option for businesses that find themselves unable to use shared short codes any more. The monthly costs are higher, but dedicated short codes enjoy higher carrier support, and higher potential throughput for campaigns.
Another option for companies will be to move to A2P 10 DLC. These numbers are expected to be faster to provision, have lower monthly costs, and be sanctioned by the carrier networks.
The key dates
A2P 10 DLC originators are scheduled to be nationally available in the US from July 2019.
Verizon has already gone live with A2P 10 DLC on their network, (although there are currently some issues with when the effective charging date is), with many of the other Tier 1 US carriers, (AT&T, T-Mobile & Sprint), planning to test through May with pending commercial launches towards the end of June / beginning of July..
If you’re currently running unsanctioned long-code traffic on Verizon we suggest you consider switching to a 10 DLC number. We can help you with that. Similarly, we can help any company that wants to get involved with testing in May.
The only carrier to announce their rate card for this new originator is Verizon. All other carriers are currently reviewing the market to assess what their rates may be. When we have officially been informed, we will let our customers know.
If you have any questions or need advice on getting started, just get in touch here.
A2P 10DLC vetting
It’s important to note that Carriers will be vetting businesses before allowing them to send traffic on A2P 10DLC. Remember, Carriers have a vested interest in keeping this route spam free and thereby reducing consumer harm.
You can think of this vetting process as like a credit check. A third party will be used by the Carriers to assess the risk each business poses, then assign a risk score.
An example of a business likely to score a low risk would be one that uses A2P 10DLC to send and receive SMS-based two-factor authorization (2FA). That’s because consumers have asked for this traffic, they respond to it, and it’s safe and necessary.
On the other end of the scale will be promotional marketing campaigns. There’s a potential for these campaigns to be sent to consumers who may not have been opted into the campaign correctly.
The score you receive could dictate the volume and throughput of messages each carrier allows you to send through their respective networks.
But the big takeaway is: if your campaigns are not in anyway spam-like, and your customers want to receive your messages and have been opted in correctly, you’re probably going to be alright.
Text-enabled toll-free numbers
The other messaging option available for businesses is to communicate with customers via a text-enabled toll-free number.
This is a service that allows businesses to “text enable” existing toll-free phone numbers, so they have one number customers can either text or call them on.
It’s important to note, that although “toll free” numbers are free for a consumer to call (i.e. the business pays the consumer cost), it is not free to text a “text-enabled toll-free number”. The consumer would have an SMS standard fee deducted from either the limited or unlimited text plan they have with their respective carrier.
These TETF numbers have a high throughput (though not quite as high as short codes) and are secure and approved for business use.
Like 10 DLC, they are another messaging option for businesses that want to start messaging quickly and easily without the higher cost sometimes associated with short codes.
A market in flux
At OpenMarket, we’re here to help our customers and partners pivot and move forward as changes in the market take effect.
We provide the tools, solutions, strategic advice and network access you need, while leveraging our close relationships with all the major US carriers to represent your interests.
We’re also here to help smooth out any migrations from shared short codes. As the US’s biggest short code provider, a global market leader in long codes, and one of the largest mobile messaging providers in the world, we know we have a big role to play here.
We’re holding regular talks with Carriers about this situation and will keep you informed of developments.
If you need any help or advice, just drop us a line here. Or if you’re an existing customer or partner get in touch with your account manager any time.
We’re always here to help.