Carrier Fees for AT&T, Verizon and T-Mobile
Application to Person (A2P) SMS fees, 10DLC Fees, and Campaign and Brand registration
As you may know, with the exponential rise of Business to Consumer SMS, the largest US telecom carriers (AT&T, Verizon, and T-Mobile) have implemented or are implementing special service fees for messages sent across their network from applications (like Aloware). Furthermore, they are requiring Brands (like you) to register their business with the carriers to avoid SMS filtering and ensure high deliverability rates.
As a service provider, we will be subject to passing on this fee and regulation requirement to our customers. Please see below for this important update and how it impacts your business.
The most notable change is AT&T. Starting 3/1/21, AT&T will be charging a Network Access Fee (NAF) on all text messages sent to their subscribers. The fee varies between $0.002 to $0.004 depending on the message type (SMS, MMS), its length, and it's content (marketing, conversational, informational, etc). Messages that are originating from unregistered campaigns will be subject to a higher fee.
A full schedule of these fees is given at the end of this document. Aloware will automatically pass on all the fees to you on a monthly basis at no mark-up. For most of our accounts, these fees will be covered under their uPro / xPro plans for agent-to-consumer SMS, however, all non-agent SMS (sequences, bulk SMS, integrations, SMS gateway, etc) are subject to these fees.
The telecommunication industry is moving fast to reduce SMS Spam and unwanted SMS. As a software vendor, we do not have a direct relationship with the Registry. Our vendors, however, are industry partners with the carriers and have made it easy to register both your brand and your campaign.
Both the A2P routes and brand registration are designed to improve deliverability and reduce spam. We are in support of this movement. Before the March deadline, we will be registering Aloware as a Service Provider with the registry and we will provide you with an easy way to register your brands and enjoy lower or no fees on your conversational SMS.
What is the implication of this on my business?
We are still working with our carrier Twilio on the fine prints of this transition. Between 3/1/21 and 4/1/21, we will be contacting you to onboard your brand as a registered brand with AT&T and other carriers. Most of the time, all you need is a valid business address, verifiable business name, and a registration document.
We do not expect the registration requirement to hinder small businesses with a low SMS volume. However, larger volumes will most likely be impacted. Therefore we will be prioritizing onboarding our brands based on your SMS traffic.
What are the fees I should expect?
Currently, only AT&T fees are known but we expect T-Mobile to publish their fees soon. Verizon fees are at $0.0025 for SMS regardless of the use case.
You can find the fees for AT&T network below:
|Campaign Type||SMS Carrier Fees||MMS Carrier Fees||Use case examples|
|Declared use case||$0.002||$0.0035|| Single-use case covering 2FA, authentication, customer care, group messaging, notifications, operations, etc.
|Marketing||$0.003||$0.0035||Marketing use case or combination of marketing and other use cases|
|Basic / Unregistered||$0.004||$0.005||High-risk providers, unregistered campaigns, or brands|
|Political||$0.002||$0.0035||Political use cases (not supported by Aloware)|
The details of this transition are still being worked on and we will be in touch with you before we change anything in your account. For more information, please see this link.
Updated Feb 13th, 2020.
The previous version of this article is no longer applicable and is posted below for informational purposes only:
Some carriers in the United States and Canada have started charging fees on SMS and MMS sent to their numbers. At the time of this writing (Sept 12th, 2020), Aloware will pay these fees on your behalf and we will not be charging your accounts. Please see the announcement below.
Verizon’s new A2P product for Long Code SMS went into effect in May 2019. All messages originating from our Long Codes and terminating to Verizon destination numbers in the US shall be routed through the new Verizon A2P product.
Verizon will be levying a surcharge fee of USD 0.0025 per message unit sent to a Verizon subscriber. We will not apply this carrier surcharge fee as is on your Long Code SMS messages to Verizon subscribers at the time of this writing.
Other network providers in the US are expected to follow suit and release their own A2P services in the coming months.