Carrier Fees from our mobile networks are now enforced across all text message aggregators. These fees are commonly referred to as Surcharges, which are premium pass-through fees levied by mobile networks, in addition to the transit fees paid. Businesses that utilize text messaging as part of their business operations, whether for marketing, transactional or other purposes, should be aware of these surcharges and the compliance rules enforced to avoid unnecessary fines and avoid disruption to their SMS text messaging campaigns and business communications.
What Are Carrier Fees?
Mobile carriers apply small surcharges to inbound and outbound messages from application-to-person (A2P) phone numbers. These charges are applied to 10DLC, Toll-Free and Multimedia Messaging Service (MMS), as well as Short Code, which are all priced accordingly.
How Surcharge Carrier Fees Work
Carrier fees in the form of surcharges are rising as a result of the recent increases in commercial text messaging across carrier networks. Associated costs will vary depending on the mobile carrier your business uses. For example, T-Mobile surcharges for inbound messages in addition to their outbound fees, whereas other networks typically only levy outbound surcharge fees.
To keep you up to date with the evolving ecosystem of SMS, we’ve compiled the most recent surcharge updates and standard costs from various mobile carriers across the U.S. and Canada.
Carrier Fees Updates
Currently, unregistered US traffic is delivered unguaranteed on a best-effort basis only. Degradation and blocking on carriers is now common for traffic that continues as unregistered. This is in addition to the higher SMS and MMS surcharges already put in place.
AT&T 10DLC Surcharges:
- A single rate surcharge for registered traffic has been applied as part of AT&T’s 10DLC program effective for June 1st, 2023 traffic onwards. Look for it in your current billing for US traffic. Carrier’s grace period for unregistered text messaging is ending with a date of August 31st, 2023.
T-Mobile 10DLC Surcharges:
- T-Mobile has enforced per-message surcharges for registered traffic.
- This carrier’s grace period for unregistered traffic has ended. SMS and MMS surcharges have risen as a result.
Verizon 10DLC Surcharges:
- Starting July 1, 2023, Verizon will charge $0.01 per message for unregistered SMS traffic.
- Verizon’s per-message SMS surcharge has increased to $0.003 from $0.0025.
Carrier Fees
United States SMS Surcharges:
Registered Long Code 10DLC — Outbound SMS / Inbound SMS Carrier Fees
(Priced in USD; Effective May 1st, 2023)
- AT&T: $0.002 / $0.000
- T-Mobile & Sprint: $0.003 / $0.003
- Verizon: $0.003 / $0.000
- US Cellular: $0.005 / $0.000
- Claro (Puerto Rico): $0.0045 / $0.000
- Textnow: $0.002 / $0.000
- Other: $0.0025 / $0.000
NEW Unregistered Long Code 10DLC — Outbound SMS / Inbound SMS Carrier Fees
(Priced in USD; Effective July 1st, 2023)
AT&T: $0.01 / $0.000
T-Mobile & Sprint: $0.005 / $0.005
Verizon: $0.01 / $0.000
Note: Sending unregistered SMS text messaging is not advised, as it is an unnecessary premium and isn’t supported beyond a best effort.
Registered Toll-Free — Outbound SMS / Inbound SMS Carrier Fees
(Priced in USD; Effective May 1st, 2023)
AT&T: $0.0025 / $0.000
T-Mobile & Sprint: $0.003 / $0.003
Verizon: $0.003 / $0.000
US Cellular: $0.0025 / $0.0025
Claro (Puerto Rico): $0.0045 / $0.000
Textnow: $0.0015 / $0.000
Registered Short Code — Outbound SMS / Inbound SMS
AT&T: $0.00250 / $0.000
T-Mobile & Sprint: $0.00250 / $0.00250
Verizon: $0.003 / $0.000
US Cellular: $0.00350 / $0.000
United States MMS:
Registered Long Code 10DLC — Outbound MMS / Inbound MMS Carrier Fees
(Priced in USD; Effective May 1st, 2023)
AT&T: $0.0035 / $0.000 *
T-Mobile & Sprint: $0.010 / $0.010
Verizon: $0.05 / $0.000
US Cellular: $0.010 / $0.000
Other: $0.010 / $0.000
NEW Unregistered Long Code 10DLC — Outbound MMS / Inbound MMS Carrier Fees
(Priced in USD; Effective July 1st, 2023)
AT&T: $0.015 / $0.000
T-Mobile & Sprint: $0.014 / $0.014
Registered Short Code — Outbound MMS / Inbound MMS
(Priced in USD; Effective May 1st, 2023)
AT&T: $0.00250 / $0.000
T-Mobile & Sprint: $0.00250 / $0.00250
Verizon: $0.003 / $0.000
US Cellular: $0.00350 / $0.000
Registered Toll-Free — Outbound MMS / Inbound MMS
(Priced in USD; Effective May 1st, 2023)
AT&T: $0.003 / $0.000
T-Mobile & Sprint: $0.01 / $0.01
Verizon: $0.005 / $0.000
US Cellular: $0.005 / $0.005
Textnow: $0.002 / $0.000
Registered Short Code — Outbound SMS / Inbound SMS
AT&T: $0.003 / $0.000
T-Mobile & Sprint: $0.01 / $0.000
Verizon: $0.005 / $0.000
US Cellular: $0.01 / $0.000
Canada SMS Surcharges:
Outbound SMS (Mobile Terminated) / Inbound SMS (Mobile Originated)
(Priced in CAD; Effective Sept 1st, 2022)
Bell & Virgin: $0.011 / $0.000
Rogers & Fido: $0.01 / $0.000
Telus: $0.008 / $0.000
Sasktel: $0.008 / $0.000
Freedom: $0.006 / $0.000
Videotron: $0.007 / $0.000
Toll-Free Outbound SMS (Mobile Terminated) / Inbound SMS (Mobile Originated)
Bell & Virgin: $0.011 / $0.000
Rogers & Fido: $0.01 / $0.000
Telus: $0.008 / $0.000
Sasktel: $0.008 / $0.000
Freedom: $0.006 / $0.000
Videotron: $0.007 / $0.000
Canada MMS:
Outbound MMS / Inbound MMS
Bell & Virgin: $0.041 / $0.000
Rogers & Fido: $0.020 / $0.000
Telus: $0.013 / $0.000
Sasktel: $0.008 / $0.000
Freedom: $0.012 / $0.000
Videotron: $0.007 / $0.000
Toll-Free Outbound MMS (Mobile Terminated) / Inbound MMS (Mobile Originated)
Bell & Virgin: $0.041 / $0.000
Rogers & Fido: $0.020 / $0.000
Telus: $0.013 / $0.000
Sasktel: $0.008 / $0.000
Freedom: $0.012 / $0.000
Videotron: $0.007 / $0.000
Registered and Unregistered Traffic
Registered traffic involves sending text messages to customers who have opted into your SMS campaign. However, unregistered traffic applies to texts that are sent to mobile users who haven’t given their consent to receive communications from your company.
All 10DLC numbers must be registered with a carrier before they can send large volumes of SMS messages. Registering your A2P number and only communicating with consenting customers is the best way to reduce messaging costs and build your trust score with mobile carriers. This avoids complications with deliverability for future text message initiatives.
If you haven’t registered your campaign and choose to remain unregistered, you may be able to contact more consumers by expanding your cold messaging outreach, but you’ll likely face issues down the line.
- Heightened filtration: Your messages are more likely to get flagged as spam and may never reach your audience.
- Elevated carrier fees: Unregistered messages cost more than registered texts for all carriers, meaning you’ll be spending more than necessary.
- High risk: Unsolicited texting to non-consenting mobile users can quickly amount to costly fines ($500) and disciplinary charges ($1,500) in violation of the Telephone Consumer Protection Act (TCPA).
The TCPA requires companies to gain formal consent from customers before they’re permitted to communicate with customers through SMS. This act aims to empower mobile users by letting them hand-pick the companies they associate with and protect them from receiving copious amounts of promotional text messages.
Penalties and Guidelines
Businesses should avoid non-compliant messaging at all costs — not only to avoid fines, but also to respect mobile users. There are various carrier policies in place to prevent companies from mistreating SMS communications. Here are some key areas to note:
1. Content Violation
U.S. telecom carriers are imposing penalties as high as $10,000 per violation for content offences, including:
- Spam: Similar to spam emails, spam texts contain inappropriate, unprofessional or untimely content, and tend to be sent in bulk.
- Phishing: This malicious practice is strictly illegal. Phishing is only conducted by those who wish to commit fraud, as it takes advantage of vulnerable recipients to reveal highly sensitive data — such as banking information or passwords — for financial gain.
- SHAFT violations: Any mention of sex, hate, alcohol, firearms and tobacco (SHAFT) in your text messages will result in a penalty. This enforcement aims to safeguard younger, easily influenced audiences and minimize offensive content.
2. Messaging Program Evasion
Companies who are found to use filtering evasion techniques with the intent to dilute number reputation, such as snowshoeing and recycling numbers, will receive a $1,000 fine.
3. Grey Route Fees (Incoming)
This penalty is not currently active but is soon to be enforced. Any businesses that use person-to-person (P2P) messaging for their business SMS initiatives and fail to migrate will face a $10 fee for each text they send.
It’s absolutely essential to register your campaign and follow carrier policies to maintain a good reputation and avoid unnecessary fines. For best practices on how to run a successful and compliant SMS campaign, check out our helpful guide here.
Get in touch with Swift SMS Gateway to explore your business SMS options. Our expert teams are readily available to help you navigate SMS solutions and support your company’s growth.
