Overview
The txtNation (mBILL) Reverse Billing SMS Service is the future of Micro-Payment SMS (Short Messaging Service) billing. There are however several implementation issues that exist with such a service, and are detailed below.
In Australia, the txtNation Reverse Billing SMS Service is currently available on the following networks:
| Mobile Operator | Subscribers (Jun 2005) | SMS Billing |
| Vodafone | 3,000,000 | Yes |
| Telstra | 8,059,000 | Yes |
| Optus | 5,600,000 | Yes |
| Hutchison 3G | 1,000,000 | No |
| Virgin Mobile | 500,000 | No |
Contents
Before launching a Reverse Billing SMS / Premium SMS Service in Australia, the following issues need to be understood, addressed and implemented:
- "Opt-In" and "Opt-Out" Nature of a Reverse Billing Service
- Reverse Billing SMS Users need to be on the correct Network
- Mobile Terminated versus Mobile Originated Reverse Billing
- Keyword or Short Code Approach?
- Incomplete Revenue Outpayments & Separate Accounts
- Advertising & Pricing Issues with Reverse Billing Services
- Billing Cycles and Contract Duration
- How to run a "Subscription" Reverse Billing SMS Service
- How to run a "Two-Way" Reverse Billing SMS Service
- 8-Bit Smart Messaging and Multi-Part SMS issues
- Technical Connection Issues and Limitations
"Opt-In" and "Opt-Out" Nature of a Reverse Billing SMS Service:
- Legal Issues
You must ensure that each User receiving Reverse Billing SMS Text Messages has "Opted-In" for receiving Reverse Billing SMS Text Messages. You must also ensure, that the User can easily "Opt-Out" of such a service as well.
- Best Implementation Strategy
Users need to initially send a Normal SMS Text Message into a Short Code "Send-In" number. (For sending in this Normal SMS Text Message, the User will pay their normal text messaging price). This confirms a user has "Opted-In" for the service you are offering. With a User's consent, you are then entitled to keep on sending Reverse Billing SMS Text Messages to that User, as long as the User can somehow "Opt-Out" of the service at any stage. To achieve this "Opt-Out", examples include providing the User with the ability to send a Normal SMS Text Message "Opting-Out" of your service, or a phone number to dial "Opting-Out", or even sending an email cancelling the service subscription.
- Technical Restrictions
In order to enforce the above, the TxtNation SMS Server Reverse Billing Edition will not allow a Reverse Billing SMS to be sent to any User, unless they have sent in a Normal Text Message to your Short Code or Shared Keyword Short Code.
Need to ensure the User receiving Reverse Billing SMS Text Messages is on the Correct Network:
- Legal Issues
You must ensure that each User receiving Reverse Billing SMS Text Messages is on the correct Mobile Network. For example, if a User is a Vodafone Australia subscriber, but signs up to your service which only covers Telstra users, then you must ensure you do not send them Vodafone Reverse Billing SMS Text Messages. If not, no revenue will be generated from that user, and you will be charged for sending that text message.
- Best Implementation Strategy
The only way of confirming 100% that a user is on a certain Network in Australia, is if they can send a Normal SMS Text Message into a Short Code that is only accessible from their network. In Australia each mobile network has its own short codes, which can only be accessed by users on that particular network. For example, users on the Telstra network cannot send a Text Message into a Vodafone-only short code.
- Technical Restrictions
In order to enforce the above, the txtNation SMS Server Reverse Billing Edition will not allow a Reverse Billing SMS to be sent to any User, unless they have sent in a Normal Text Message to your Short Code or Shared Keyword Short Code.
Mobile Terminated versus Mobile Originated Reverse Billing SMS:
- Issues
Vodafone, Telstra and Optus all offer both Mobile Originated (MO) and Mobile Terminated (MT) Reverse Billing SMS. Mobile Terminated means the end user is billed for receiving Reverse Billing SMSs. Mobile Originated (MO) means the end user is billed when they send into a Premium Rate SMS Billing Short Code.
- Best Implementation Strategy for Premium SMS Austrailia
Mobile Terminated Reverse Billing SMS offers far more flexibility than Mobile Originated Reverse Billing SMS. The main reason for this lies with the ability to run subscription based services. For example, Users need only send in one normal SMS Text Message with the word "Subscribe", and receive Reverse Billing SMS text messages on their mobile phone each day for the rest of the year. Users do of course, need the ability to unsubscribe to a service should they so choose.
- Alternative Solutions
If running a competition or voting service, where the service only requires a user to send in a Text Message, Mobile Originated Reverse Billing SMS would be the preferred option. However, using Mobile Terminated Reverse Billing SMS, you can simply reply to the User who has voted / entered a competition, with a Reverse Billing SMS Text Message informing them that their vote / entry has been received.
Keyword or Short Code Approach?:
- Legal Issues
txtNation offers companies the ability to have either their own Short Codes, or instead use a shared Short Code. An added benefit of a dedicated Short Code is the fact that it includes a dedicated billing account from the Mobile Operator.
- Best Implementation Strategy
txtNation offers the use of its own "Shared Short Codes" or can instead provide you your own Short Code. With a dedicated Short Code, any SMS Text Messages that arrives on your Short Code is automatically sent to you via the Internet. If using a Shared Short Code, a Keyword needs to be chosen. Consequently any SMSs arriving on the Shared Short Code will need to begin with the chosen Keyword(s).
- Technical Restrictions
txtNation recommends the use of dedicated Short Codes where possible. Companies need to be aware that certain services, such as "Chat" services, where users responses are not based upon a keyword, are not compatible with a Shared Short Code.
Incomplete Revenue Outpayments & Separate Accounts:
- Legal Issues
Due to certain billing problems at the Mobile Network level, certain Network Operators do not always outpay 100% of the expected Reverse Billing SMS Revenue generated. Operators will only outpay revenues that they claim they have received themselves. All Reverse Billing SMS contracts take account of this issue.
- Best Implementation Strategy
By having a dedicated Short Code, you have your own billing account with each operator, meaning you have full visibility of statistics for all SMS messages sent from that short code.
- Technical Issues
A Reverse Billing SMS account, offers live online access to logs detailing sent messages along with a timestamp and the destination mobile phone number are available to each account. Logs also include the SMS messages themselves, as well as your optional sub account details, information notes, and IP addresses.
Advertising & Pricing Issues with Reverse Billing SMS Services:
- Legal Issues
All Message Prices need to be clearly identifiable to Service Users. Message Prices should be quoted inclusive of VAT on any promotional material. Users also need to be fully aware of the number of SMS Text Messages they will be receiving, as well as how to "Opt-Out" of a Reverse Billing SMS Service.
- Best Implementation Strategy
All advertising needs to be very clear and accurate.
Billing Cycles and Contract Duration:
- Legal Issues
As is the case for Premium Rate numbers, billing cycles are based upon Calendar months. Outpayments for each Calendar month are paid 45 days in arrears. The Contract duration depends upon the use of either a Dedicated or Shared Short Code. For a Dedicated Short Code, minimum contract duration is 12 Calendar months. For a Shared Short Code, the minimum contract duration is 3 months.
- Best Implementation Strategy
If a Reverse Billing SMS account is opened midway during a Calendar Month, the revenue outpayments will be based upon that Calendar month only.
How to run a "Subscription" Reverse Billing SMS Service:
- Legal Issues
You must ensure that each User receiving Reverse Billing SMS Text Messages as part of a Subscription Service, is fully aware of how expensive and regular the Reverse Billing SMS Text Messages will be. The User needs to have "Opted-In" to the service, as well as have the ability to easily "Opt-out".
- Best Implementation Strategy
Reverse Billing SMS is an ideal solution for "Subscription" based services. Unlike Premium Rate numbers, a user can send one single SMS into a Short Code with the word "SUBSCRIBE", and receive a Reverse Billing SMS Text message every day for the rest of the year. The onus is therefore upon the user to unsubscribe from a service, rather than keep on subscribing each day for a Reverse Billing Service.
- Technical Restrictions
The TxtNation SMS Server Reverse Billing Edition will not allow a Reverse Billing SMS to be sent to any User, unless they have sent in a Normal Text Message to your Short Code or Shared Keyword Short Code.
How to run a "Two-Way" Reverse Billing SMS Service:
- Legal Issues
You must ensure that each User receiving Reverse Billing SMS Text Messages as part of a standard "Two-Way" Reverse Billing SMS Service, is fully aware of how expensive the resulting Reverse Billing SMS will be. Because standard "Two-Way" messaging only involves a single reply to an information request, there is no need for an "Opt-out" requirement, as only one SMS response is generated.
- Best Implementation Strategy
As mentioned in the 8-Bit Smart Messaging and Multi-Part SMS issues section below, some messages (especially 8-bit messages) require more than one SMS Text Message to be sent. Consequently, the User will in fact be billed for each Reverse Billing SMS Text message that he/she receives. Therefore, if for example, a single 2-part ringtone is sent to a User on a 1.00 AUD Reverse Billing SMS Tariff rate, then the user will actually be billed 2.00 AUD. The User must be fully informed in such a situation of the costs involved.
- Technical Restrictions
The TxtNation SMS Server Reverse Billing Edition will not allow a Reverse Billing SMS to be sent to any User, unless they have sent in a Normal Text Message to your Short Code or Shared Keyword Short Code.
8-Bit Smart Messaging and Multi-Part SMS issues:
- Legal Issues
GSM SMS Text messages have a limitation of 160 characters. For messages that are longer than this, the SMS Server automatically sends a multi part series of SMS Messages. The SMS Server is also able to send certain 8-bit Smart Messages (such as Ringtones, Group Graphics, EMS, Picture Messages and Operator Logos) to certain Nokia, Ericsson and Motorola mobile phones, many of which are multi-part SMS Text Messages. Users will therefore be billed for each multi-part SMS, even though it appears as if they have only received a single SMS Text message on their mobile handset.
- Best Implementation Strategy
It is important to check the number of SMS Text Messages that are required for each kind of Smart Message. Many Smart Messages vary in length (especially ringtones, whose length is based upon the duration of the tune).
- Technical Restrictions
Please take a look at the Smart Messaging section which details Smart Messaging compatibility and technical issues.
Technical Connection Issues and Limitations:
- Legal Issues
The txtNation SMS Server Reverse Billing Edition will not allow a Reverse Billing SMS to be sent to any User, unless they have sent in a Normal Text Message to your Short Code or Shared Keyword Short Code.
- Best Implementation Strategy
All Reverse Billing SMS Services needs to be based around the concept of a User initially sending an SMS Text Message into a Reverse Billing Short Code.
- Technical Restrictions
Although rare, contractually Mobile Operators have the right to delay the transmission of Reverse Billing SMS Text Messages.
- Delivery Reports
txtNation offers delivery notifications and confirmations of definitive delivery or otherwise of SMSs sent to mobile phones.
See: www.m-bill.net
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