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How to Choose an SMS Service Provider?

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How to Choose an SMS Service Provider?

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How to Choose an SMS Service Provider (SMS Gateway Provider, SMS Reseller, SMS Broker)?
Introduction
This article discusses 13 questions that you should ask yourself when choosing an SMS service provider. An SMS service provider is a business entity that provides SMS messaging services but is not a mobilenetwork operator. It acts as a middleman between mobile network operators and SMS service users. An SMS service provider signs agreements with a lot of mobile network operators to obtain their permission to exchange SMS messages with their mobile networks, and offers an interface for users to send and receive SMS messages. Some of the interfaces are very simple to use since they hide most of thetechnical details of SMS messaging. Some others are more powerful that support more features. SMS service providers are also known as SMS gateway providers, SMS resellers or SMS brokers. This is because:


SMS gateway provider. An SMS service provider provides an SMS gateway for its users to send SMS messages to. This SMS gateway will then route the SMS messages to another SMS gateway or SMSC. SMSreseller / SMS broker. SMS service providers buy a large amount of SMS messages from a lot of wireless carriers at a low price per SMS message. They then sell the SMS messages at a price higher than the cost.



More information about SMS service providers can be found in the "SMS Service Providers (SMS Gateway Providers, SMS Resellers, SMS Brokers)" section of our SMS tutorial. Links to theweb site of some SMS service providers and a comparison between their SMS messaging services are available in "Comparison Table of SMS Service Providers (SMS Gateway Providers, SMS Resellers, SMS Brokers)".

1. How much does it cost to send 1 SMS message?
Cost of service is an important factor that you need to consider when choosing an SMS gateway provider for your SMS application. Typically,SMS gateway providers can be divided into 2 categories in terms of how they require you to pay for their SMS service:


Credit-based You purchase a number of credits from the SMS gateway provider. Sending one SMS message will cost you one or more credits, depending on the country you send the SMS message to. For example, sending an SMS text message to India might cost you one credit whilesending an SMS text message to the United States might cost you two credits. SMS-based You purchase a number of SMS messages from the SMS gateway provider. The cost for sending one SMS message is the same for all destinations. For example, if you purchase ten SMS messages, you can send at most ten SMS messages no matter the destination is India or the United States.



In general: Cost per credit(credit-based payment) < Cost per SMS message (SMS-based payment) So, is credit-based payment always better? Not definitely. Let's take a look at the following

How to Choose an SMS Service Provider?

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example:

SMS gateway provider A (Credit-based payment): Cost per credit = US $0.06 SMS gateway provider B (SMS-based payment): Cost per SMS message = US $0.1 SMS gatewayprovider A To country X Cost per SMS message = $0.06 To country Y (Suppose 3 credits are required.) Cost per SMS message = $0.06 * 3 = $0.18 Cost per SMS message = $0.1 SMS gateway provider B

(Suppose 1 credit is required.) Cost per SMS message = $0.1

From the above table, you can see that if your SMS messaging application targets on country X, you should choose SMS gateway provider A since...
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