A Year in Review: 2024 A2P 10DLC Carrier Fee Increases and How to Reduce Costs in 2025

Written by: Samantha Carreira

As we reflect on some of the more significant changes in A2P 10DLC messaging across 2024, one standout includes the continuous increases in carrier pass-through fees. These fees, which carriers like T-Mobile, AT&T, and Verizon charge for sending and receiving A2P 10DLC messages, are a critical factor in the overall cost of SMS campaigns. 

While these fees are unavoidable, optimizing message deliverability can help reduce their impact. Telgorithm specializes in improving message deliverability, ensuring your messages reach your audience efficiently and cost-effectively. 

Whether you’re just starting to explore 10DLC messaging or have been using it for some time, it’s important to understand how these fees can affect your budget and messaging strategy.

What Are Carrier Pass-Through Fees?

Carrier pass-through fees are the charges applied by wireless carriers (such as T-Mobile, AT&T, and Verizon) for the delivery of Application-to-Person (A2P) messages. These fees are passed through to SMS providers like Telgorithm, who in turn pass them on to businesses sending messages via 10DLC (10-digit long code) numbers. 

These fees have been rising steadily throughout 2024, with different carriers introducing incremental increases over the course of the year. Understanding these increases is key to managing the costs of your SMS campaigns effectively.

T-Mobile: Steady Increases Through 2024

T-Mobile, one of the major players in A2P 10DLC messaging, has introduced several fee increases throughout 2024. Below is a breakdown of the increases for unregistered 10DLC messaging:

• January 2024: $0.008 per SMS, $0.017 per MMS
• June 1, 2024: $0.009 per SMS, $0.018 per MMS
• August 1, 2024: $0.010 per SMS, $0.019 per MMS
• October 1, 2024: $0.011 per SMS, $0.020 per MMS
• December 1, 2024: Scheduled increase to $0.012 per SMS, $0.021 per MMS

This is a notable increase over the year, with SMS fees rising by 50% and MMS fees increasing by 23.5%. These increases highlight the growing costs businesses must factor into their SMS budgets.

AT&T: Fee Hikes and New Fees in October 2024

AT&T also introduced substantial changes to their 10DLC fees, with new rates that took effect on October 1, 2024. Here's the breakdown:

• Registered 10DLC:

  • SMS: new $0.0030 fee for inbound (same cost for outbound, no change)
  • MMS: new $0.0075 for inbound, outbound increased to $0.0075

• Unregistered 10DLC:

  • SMS: new $0.0100 for inbound (same cost for outbound, no change)
  • MMS: new $0.0150 for inbound (same cost for outbound, no change)

Verizon: Stable for Now, But Change Could Be Coming

While Verizon’s pass-through fees have remained stable this year, businesses should remain vigilant for any potential changes. The carrier’s fee structure has been relatively consistent when compared to the fluctuating increases of T-Mobile and AT&T. However, it’s always wise to keep an eye on any announcements as we move into 2025, especially with the growing trend of fee increases across the industry.

How Can These Increases Impact Your Messaging Strategy?

Carrier pass-through fees are an unavoidable cost of sending A2P 10DLC messages, but there are several steps businesses can take to minimize the impact of these increases:

1. Maximize Deliverability Rates with Smart Queueing

Message deliverability is one of the most important factors in the effectiveness of your SMS campaigns. If your messages are sent but fail to be delivered, you’ll still incur the carrier fees associated with sending those messages. Choosing an SMS API provider like Telgorithm that prioritizes high deliverability rates can ensure that your messages reach your audience—and that you’re not paying for undelivered messages. Do you know how much you spent on carrier fees for undelivered SMS and MMS messages in 2024? 

At Telgorithm, we specialize in optimizing 10DLC messaging to ensure that you get the best possible deliverability rates with our Smart Queueing technology, helping you minimize unnecessary costs and maximize the impact of your campaigns.

2. Be Registered with The Campaign Registry

This will soon be a non-issue as beginning December 1, 2024, only fully registered 10DLC messaging traffic will be serviceable due to the upcoming cut off of unregistered traffic. Registering your campaign ensures that your messages are compliant with carrier guidelines and helps to avoid additional surcharges that could apply to unregistered traffic. It’s crucial to complete your registration process before the December deadline to avoid unnecessary costs.

Conclusion: Preparing for the Future of 10DLC Messaging

With rising carrier fees and upcoming changes to 10DLC messaging regulations, 2024 has been a pivotal year for businesses using A2P messaging. While it’s impossible to avoid pass-through fees, there are steps you can take to minimize their impact. Getting customers registered with The Campaign Registry and ensuring optimal deliverability rates are key strategies that will help you maintain cost-effective messaging operations despite the fee increases.

As always, working with an experienced SMS API provider like Telgorithm can help you navigate these changes and ensure that your messaging strategy remains effective and cost-efficient. Contact us today and find out how much Smart Queueing can save you.