Vodafone have finally switched on their long awaited international filters, and now require all SMS traffic for Vodafone customers to be delivered using direct ON-NET connections. This falls into line with similar moves already made by Optus and Telstra, and means reliable & cheap global routes into any of the Australian carriers are no longer accessible. Despite a small increase in the cost of doing business for all of us, we see this as a good thing for the industry and for our clients.
Refresher: What is ON-NET messaging & Why is it good?
There are two ways to send messages into a mobile carrier.
1) Direct (On-Net) connections: where messages are sent directly to connections into the carriers in your country. On-Net routing is simply the most reliable and secure messaging format that carriers offer to the wholesale messaging industry. It is timely, accountable & fully traceable.
2) International routing: where messages are routed around local carrier direct connections, and sent offshore via international carriers making use of their interconnect systems. Implemented well, these routes have been utilised by the industry and us, to deliver low cost high quality messaging to our customers for many years. However, with all local carriers now blocking this type of traffic, there are now no openly accessible & reliable International routes left operating.
What does this mean for SMS prices?
Next Monday 17th Nov, Burst SMS prices will increase by 1c per SMS across the board. With the 300% increase in cost of reaching Vodafone subscribers, we have smoothed this out over our blended rate to a 1c per SMS increase for all accounts across the platform.
What happens to my current account balance?
No adjustments will be made to your account balance. Simply, after the price rise is implemented, any subsequent messaging you do will be charged at the new rates.
I am a White Label Reseller… What happens to my client pricing?
Your base rate will increase by 1c per SMS, but your margins will be untouched. This will result in a net increase of 1c per message to your customers for their messaging from next Monday, and unchanged margin remittance back to your account from the changeover. If you wish to maintain your SMS prices to clients, you will need to reduce your margin by 1c per SMS. This can be done at Clients > Settings. If you have 20 or more client accounts, please contact us for an automated margin update.
Delivering Great Experiences
The increase in cost, whilst never convenient, will ensure we can carry on bringing you the best SaaS SMS messaging platform on the market, with the prompt service and tech support you are used to. As with the Optus increase last year, there will be a number of companies that will continue to try and deliver traffic across international routes and keep prices down, but with this routing now heavily filtered so be mindful of the impact on reliability at these lower price points. As before, Burst SMS will continue to lead the market on Price for Quality, Ease of Use, Platform Features, Service & Tech Support, and with the playing field of messaging quality now levelled, we look forward to keeping our competitors honest and our resellers fully fuelled.
If you have any queries on the above and would like to discuss any aspects of your account, please reach out as we are most happy to take your call.