Vodafone will begin filtering & blocking internationally routed SMS traffic sometime in October/November this year, effectively falling into line with similar moves already made by Optus and Telstra. This means all reliable & cheap global routes into Vodafone will no longer be accessible. As with Optus last year, when Vodafone force all traffic on-net this will also mean an industry wide increase in the cost of message termination to their network. With Vodafone having an approximate 24% market share of traffic we will be looking at an aggregate price increase of 0.8-0.9 cents per message.
What is ON-NET messaging?
There are two ways to send messages into a mobile carrier (MNP). 1) Direct On-Net connections: where messages are routed via connections directly into the MNP in your country. and 2) International routing: which allows traffic to be routed around an MNP's direct connection using other MNP's interconnect systems, and implemented well, have been utilised by the industry to deliver low cost quality messaging to our customers up until now. When Vodafone makes its filtering move, international routing will no longer be possible in any reliable way to Australian networks.
What is good about ON-NET messaging?
On-Net routing is simply the most reliable and secure messaging format that carriers offer to the industry. It is timely, accountable & fully traceable. After Vodafone moves, all wholesale SMS services in Australia will send via identical quality connections. The differentiator in the market will no longer be routing quality. The differentiator will now be price, service and software quality. Whilst message reliability is one thing, software platforms and gateways can still vary wildly in quality. We are constantly working to make sure ours is the most advanced and reliable on the market as we always have. And proof is in the pudding, we now have in excess of 1,000 white label accounts re-branding and re-selling our services.
What does this mean for market prices now?
There is NO change to our prices at this time, but when the filtering does commence in a few months our prices will move up by approx 0.8-0.9 cents per message. We run on slim margins as it is, but we need to ensure these margins are maintained so we can continue to bring you top quality service and the best platform on the market. From our experience during the Optus increase last year, some messaging companies may attempt to continue routing internationally and keep their prices on hold, but we believe this will more than likely lead to deliverability and reliability issues as messages inevitably get caught up in the new filtering. We aim to be completely transparent and let you know what is going on. We highly value your ongoing custom, and if during this pricing transition period you have any concerns or queries on the above, or wish to discuss your account with us, please just reach out and we will be most happy to receive your call.