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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 software is just starting to explore 10DLC messaging or have been leveraging it for some time, it’s important to understand how these fees can affect your budget and messaging strategy.
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 rose 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, one of the major players in A2P 10DLC messaging, introduced several fee increases throughout 2024. Below is a breakdown of the increases for unregistered 10DLC messaging:
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 also introduced substantial changes to their 10DLC fees, with new rates that took effect on October 1, 2024. Here's the breakdown:
While Verizon’s pass-through fees have remained stable, 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.
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:
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 a messaging 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.
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. Do you know how much you spent on carrier fees for undelivered SMS and MMS messages in 2024? Our calculator can help you figure out how much you could save!
This will soon be a non-issue as effective February 1, 2025, only fully registered 10DLC messaging traffic will be serviceable due to the extended 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 deadline to avoid unnecessary costs.
Receiving a 10DLC Campaign rejection can be extremely frustrating, but it can also be very costly as you have to pay each time a Campaign is submitted for approval, even if it's a resubmission. Ensuring your Campaigns get approved on the first attempt is a good way to limit costs and keep your messaging from being delayed.
As rules change often, it's important to partner with a messaging API provider that is going to provide your team timely and proactive 10DLC guidance and support through the various changes to 10DLC rules and regulations.
With rising carrier fees and upcoming changes to 10DLC messaging regulations, 2024 was 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 messaging API provider like Telgorithm can help you navigate these changes and ensure that your messaging strategy remains effective and cost-efficient.
If your team needs additional resources to avoid rejections, download our free 10DLC Compliance eBook here. Need to solve your customer’s 10DLC issues faster? Book a free 10DLC consultation with a Telgorithm expert today and we'll review one of your rejected Campaigns for free.
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