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Friday, Oct 10

The 3 Cents that Will Change the Industry

In a move that could make SMS-based marketing far less appealing to everyone from advertisers to media companies, banks and information providers, Verizon Wireless said it's going to start charging three cents for all mobile-terminated (MT) messages sent over its network starting November 1.

This is in addition to the fees that the senders already pay, which generally range from less than a penny to a few cents per message, according to RCR Wireless.

The new fee will be tacked on to both standard and premium SMS programs, but won't affect non-profit or free-to-end-user campaigns. Verizon said the new charge is necessary to cover its costs.

We received an e-mail from Steve Livingston, CMO of mobile transaction network mBlox with his take on the new Verizon Wireless policy. Here's what Livingston had to say:

This recent announcement from Verizon is very significant because a large number of market segments will no longer be able to participate in off-portal SMS services. Although we understand the carrier's need to monetize, the immediacy, the market timing and level of cost will create a shock to the system. The mobile channel will quickly become unattractive to many companies, small and large, that have been investing in new innovative programs and services.


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