Common Short Codes The U.S. Ecosystem

Transcription

1 Common Short Codes The U.S. Ecosystem September Interop Technologies

2 Reproduction or transmission of any part of this documentation in any form or by any means without the express written permission of Interop Technologies is strictly prohibited. This documentation is furnished for informational use, and should not be construed as a commitment or guarantee. The furnishing or distribution of this documentation does not grant any license to patents, trademarks, copyrights, and/or other intellectual property rights. All screen shots that appear in this documentation have been taken from our actual application and are for illustrative purposes only. Interop Technologies has taken best efforts to ensure the accuracy and integrity of the information contained in this documentation. Interop Technologies assumes no responsibility or liability for any errors, omissions, or inaccuracies that may be contained in this informational documentation Interop Technologies 2

3 Table of Contents PROPOSAL Introduction... 4 CSC Players... 4 CSC Types... 5 Launching a Campaign... 5 The Interop Technologies CSC Gateway... 8 Conclusion Interop Technologies 3

4 Introduction Successful campaigns such as the My Coke Rewards program and American Idol voting have made Common Short Codes (CSCs) familiar to most Americans. CSCs are five- or six-digit leased codes that mobile subscribers use to send SMS or MMS messages through a mobile device. Using short codes, subscribers can enter contests, receive coupons, make donations, receive ringtones, participate in voting campaigns, and join in other interactive promotions. Short codes have become a popular marketing strategy for companies and brands throughout the U.S. The Common Short Code Administration (CSCA), part of CTIA-The Wireless Association, manages U.S. short code leases through a centralized registry. Other players in this ecosystem include mobile network operators, application providers, content providers, and content aggregators. According to CTIA, the U.S. model has resulted in the creation of nearly 5,000 short codes that are associated with more than 25,000 campaigns and estimated revenues of $8-12 million. This paper provides an overview of the U.S. CSC ecosystem, including the role of each player and a review of available CSC types. In addition, it reviews how the Interop Technologies CSC Gateway provides benefits to aggregators as well as to smaller mobile network operators that wish to provide short code content to their subscribers. CSC Players The CSC ecosystem is comprised of several types of companies: Content Providers Leverage short codes to promote a company or brand Application Providers Offer application-based software solutions that power short code campaigns Aggregators Serve as conduit between application and content providers and mobile network operators Mobile Network Operators Provide mobile service and short code content to mobile subscribers 2013 Interop Technologies 4

5 CSC Types Operators can introduce four types of short code campaigns: Standard Subscribers are charged standard messaging rates based on their monthly plan. Premium Subscribers are charged a fee in addition to the standard rate in their monthly plan. Free To End User (FTEU) Operator waives all fees associated with the message; standard messaging rates do not apply. Charity The dollar amount of subscribers charitable contribution or donation is added to their bill; standard messaging rates may also apply. Launching a Campaign Companies and brand owners planning to launch a short code campaign are known as content providers. To initiate a campaign, content providers first obtain a short code and apply for a campaign through the CSCA website. CTIA-The Wireless Association oversees the CSCA, which maintains the centralized CSC database and manages the technical and operational aspects of CSC functions. Leasing a specific CSC costs $1,000 per month; randomly assigned codes cost $500 per month. Each code can be leased for 3, 6, or 12 months, during which time; the code is unavailable to other content providers. Five-digit CSCs are within the range of to 99999; sixdigit CSCs are within the range of to After submitting registration information and campaign details through the CSCA website, content providers are subject to a vetting process by Aegis Mobile, a vendor selected by CTIA to confirm that the application and content provider are legitimate and that the campaign complies with the Mobile Marketing Association (MMA) Consumer Best Practice Guidelines. During the vetting process, each network operator interested in launching a specific campaign reviews and approves the content provider s application individually; this information is reviewed annually Interop Technologies 5

6 Once a code is obtained, the content provider partners with an application provider, which develops and hosts the software application needed to power the campaign. Application providers often specialize in specific application types, such as voting, couponing, or donation-related campaigns. Content providers can also develop and host applications themselves instead of partnering with an application provider. In addition, content providers partner with aggregators, which serve as the intermediary between application/content providers and operators. Aggregators typically connect to wireless networks via Short Message Peer to Peer (SMPP) over a secured virtual private network (VPN) connection. Aggregators are approved to send SMS messages by one or more operators; a given aggregator typically does not provide connectivity to all operators. Once these relationships are in place, the short code is set up on the operator s network and tested to ensure proper routing from the operator s network to the application. U.S. Aggregators The CSCA website identifies the following aggregators that are connected to at least one network operator and are approved to send SMS messages. According to the CSCA, Tier 1 and Tier 2 aggregators offer 24/7 SLAs and meet the highest standards of infrastructure quality, redundancy and network security. They publish content only when they own the rights or hold a license to publish for their clients benefit. The following Tier 1 aggregators have direct connections (SMPP) to and premium agreements with at least 4 of these 5 carriers: AT&T, 2013 Interop Technologies 6

7 Sprint/NEXTEL, T-Mobile USA, U.S. Cellular and Verizon Wireless and support both SMS and MMS, according to the CSCA: Air2Web mblox Motricity OpenMarket payvia SAP Vibes Media The following Tier 2 aggregators have direct connections (SMPP) to at least 3 of the top 5 wireless carriers (AT&T, Sprint/NEXTEL, T- Mobile USA, U.S. Cellular and Verizon Wireless) and premium agreements with at least 2 of 5, according to the CSCA. These aggregators also support SMS. 3Cinteractive Syniverse The CSCA identifies the following Tier 3 aggregators as resellers who mainly operate on the backbones of Tier 1 and Tier 2 aggregators. They typically mark up messaging rates and premium payouts. Aerialink 4INFO i2sms impactmobile Nokia Mobile Accord Moonshado Netpace Netsmart New Motion Single Touch TeleMessage Txtwire 2013 Interop Technologies 7

8 The Interop Technologies CSC Gateway Interop Technologies introduced its CSC Gateway to provide smaller, regional operators with a cost-effective way to offer CSC campaigns to their subscribers. As noted above, the U.S. ecosystem calls for operators to manage relationships with multiple aggregators to provide its subscribers with the complete range of CSC content. Likewise, aggregators must manage numerous operator relationships to satisfy content providers desire to access to as many subscribers as possible. For operators and aggregators alike, the need to manage multiple relationships can be both costly and inefficient. The Interop CSC Gateway simplifies operator-aggregator relationships by providing a single connection to aggregators, enabling operators to make numerous national-level CSC campaigns available to their subscribers without the need to manage multiple aggregator relationships. At the same time, aggregators benefit by gaining connectivity to numerous operators, therefore increasing the number of subscribers with access to their content providers campaigns Interop Technologies 8

9 Interop negotiates with aggregators either directly or on behalf of operators to obtain access to CSCs. The aggregators, in turn, negotiate with application and content providers to accept each operator and provide short code content. For a monthly fee, Interop CSC Gateway operator customers gain access to all CSC campaigns available from aggregators with which Interop has established relationships. Operators also benefit from a 2013 Interop Technologies 9

10 single billing feed for multiple aggregators and web-based tools and reports for management of all content sources. Conclusion CSCs are a popular mobile marketing strategy for companies and brands throughout the U.S. The CSC ecosystem is well defined in this country, with the CSCA maintaining a centralized registry of short codes and aggregators serving as an intermediary between application/content providers and network operators. Both operators and aggregators have benefitted from the addition of Interop Technologies CSC Gateway to this ecosystem. Aggregators satisfy content providers demand to deliver their campaigns to as many subscribers as possible while minimizing the number of operators with whom they need to establish connectivity. Likewise, operators enable subscribers to participate in national short code campaigns. Due to the popularity of these campaigns, the ability for smaller operators to offer CSCs to subscribers is important to remain competitive with Tier 1 providers. The Interop CSC Gateway provides a compelling, cost-effective way for operators to deliver this valueadded service Interop Technologies 10