What is SMS Exchange?

The SMS Exchange refers to a two or more carriers exchange sms traffic over the public network, when people send sms messages around the world the telecom service providers send these SMS messages from one destination to another, the process of sending and receiving these sms messages is is referred to SMS Exchange.

SMS Exchange Platform, Why Build One ?

In this blog we will not be discussing the reasons for SMS growth, instead we will be focusing on why do we need to build an SMS Exchange platform.

The Problem

If you’ve ever tried to establish SMS interconnections with operators, you’ll immediately relate to this blog post. For those who haven’t, I’ll explain some of the challenges you might face when attempting to connect with SMS carriers.

My experience is similar to what we’ve previously encountered with voice operators. Interconnecting with a single carrier can take months, if not years, due to extensive paperwork, business case approvals, and numerous questions like what your message content is, who you’re sending it to, and why.

Even after supplying all the required information, you might still experience poor delivery rates and be charged per submission, regardless of whether the SMS was delivered or not. This doesn’t make sense to me, and I’m sure it won’t to you either. While it can take years and significant security deposits to manually connect with a few carriers, TelecomsXChange has made it simple and automated for buyers to interconnect with over 300+ voice carriers in minutes instead of years. We’ve built this solution for voice, and we see no reason why we can’t apply everything we’ve learned to make it happen for SMS as well.

The Mission

The mission of SMS Exchange is to empower “anyone” to seamlessly interconnect with SMS termination providers within minutes. Users will have the ability to route their SMS messages directly to the carrier of their choice, bypassing intermediaries. The platform also allows buyers to receive support directly from operators and aggregators, without the need to go through the exchange itself. SMS Exchange will automatically relay all rate updates from sellers in a standardized rate sheet format, enabling buyers to automate the import of these rates. Sellers will enjoy the convenience of requesting payouts whenever needed.

At the same time, the platform will maintain robust automation to ensure that all senders meet the seller’s requirements for SMS termination—whether it’s registering Sender IDs or adhering to any specific rules set by the SMS terminators. The goal is to keep the process simple yet highly efficient.

Selling SMS Routes on the Exchange

Here’s how to sell your SMPP route(s) on the SMS Exchange:

  1. Log in to your seller account [here].
  2. Navigate to the “Routes” section.
  3. Click “Add New Route.
  4. Select “SMPP” as the route type.
  5. Enter the receiving equipment’s SMPP details (Host, System ID, Password, Port).
  6. Upload your selling rates, including MCCMNC, price, and effective date.

Once your rates are uploaded, the system will automatically run a test on your route. After passing the test, your SMS route will go live in the market view, making it visible and available for buyers to purchase.

SMS Exchange Market View

The Market

The global A2P SMS Market Set for Rapid Growth, To Reach Around USD 70.0 Billion by 2020, Zion Research has published a new report titled “A2P SMS Market for Pushed Content Services, Customer Relationship Management Services, Promotional Campaigns, Interactive Services and Other Applications: Global Industry Perspective, Comprehensive Analysis, and Forecast, 2014 – 2020.” According to the report, global demand for A2P SMS market was valued at around USD 55.0 billion in 2014, and is expected to reach USD 70.00 billion in 2020, growing at a CAGR of around 4.0% between 2015 and 2020.

Contributors

We’re putting together the SMS industry leaders to contribute with both technology and market knowledge to make this happen, we’re also open for community ideas and contributions, if you have an opinion or a requirement please go ahead and email tier1@telecomsxchange.com .