Reducing the cost of text messaging

We are currently reviewing the SMS Text Message supplier that we pre-configure for use with the Automated Message Manager module.

A brief history

When we first launched this SMS Text Message feature, we allowed clinics to select and configure any SMS Text supplier. This created many problems for clinics as they selected suppliers that took their client numbers and then spammed their clients. Other clinics had problems getting the configuration right. Others clinics thought they found a cheap price to send a SMS text message, but were then surprised by termination fees on some networks or hit with minimum monthly fees.

To address this situation and give our clients some certainty, we reviewed the market and found a supplier that promised they would not spam your client numbers. We then pre-configured the setup so it was easy for all clinics to use. At the time, this supplier’s prices were competitive in the marketplace for the service they were providing.

Simplicity was an additional appeal of this supplier as they charged a flat fee of AUD$0.22 no matter the country or network to which the message was sent. In addition, they offered some volume discounts for larger clinics.

Why we are making a change

In the last couple of years the market has matured, transparency has increased, and there is a larger choice of reputable suppliers. As the market has grown, many of these suppliers have reduced their fees. Unfortunately, the supplier we pre-configured has not and we believe their pricing is no longer competitive.

At the same time, the number of clinics using SMS text messages has increased and the number of text messages they are sending has increased. Clinics now use SMS Text Message to:

• Remind clients to withhold food the night before surgery
• Remind clients they have an appointment in hour
• Inform clients they are running behind schedule and ask them to delay their arrival to reduce waiting times
• Remind clinics to muzzle or sedate their pets before they bring them into the clinic
• Remind them to give their pet a wormer or flea treatment

This increased volume of messages combined with the price differential is now making a significant difference in cost to some clinics.

Do you have any suggestions?

Therefore, we are reviewing the market to identify a more competitive supplier. As part of the review, I wanted to ask you for any feedback or suggestions you may have. Simply submit a web case with the link to their service plan,

Likely costs going forward (unless you have a better suggestion)

From the review we have conducted to date, the likely replacement supplier offers a pricing plan that is a little more complex, but offers some very significant savings depending on the region and network. In practice, we think the operation will be as simple as the solution we currently offer. Their pricing set out by region and receiving telecom network is currently quoted as:

Australia (+61) $AUD

• Telstra 0.068
• Virgin Mobile 0.054
• Vodafone 0.054
• Vodafone Hutchison (Hutchison 3G) 0.054
• YES Optus (Singtel) 0.054

Bahamas (+1242) B$

• BTC Bahamas 0.049

Botswana (+267) Pula

• Botswana Telecommunications Corporation (BTC) 0.325
• Mascom Wireless 0.325
• Orange (Vista) 0.325

Canada (+1) Canadian Dollar

• Alliant Telecom (Mobility) 0.096
• Bell Mobility 0.096
• Fido (Microcell) 0.051
• Ice Wireless GSM 0.096
• MTS 0.096
• Rogers AT&T Wireless 0.051
• Sasktel Mobility 0.096
• Telus Mobility 0.096
• Thunder Bay 0.096
• Virgin Mobile 0.096

HongKong (+852) HK$

• China Motion Telecom HK 0.377
• CSL 0.377
• Hong Kong Telecommunications (HKT) Limited (PCCW) 0.377
• Hutchison (CDMA) 0.377
• Hutchison (Orange 2G) 0.377
• Hutchison 3G 0.377
• New World PCS 0.377
• Peoples 0.377
• SmarTone 0.377

Ireland (+353) Euro

• Eircell (Vodafone) 0.032
• Hutchinson 3G 0.032
• Meteor 0.032
• O2 (Esat Digifone, Tesco) 0.032   

Netherlands (+31) Euro

• KPN Mobile The Netherlands B.V. 0.088
• Orange Nederland N.V. 0.066
• T-Mobile Netherlands B.V. 0.066  
• Tele2 (Netherlands) B.V. 0.044  
• Telfort (O2) 0.088  
• Vodafone (Libertel) 0.088

New Zealand (+64) NZ$

• Telecom New Zealand 0.087
• Telstra New Zealand 0.069
• Two Degrees Mobile Limited 0.069
• Vodafone (BellSouth) 0.069

Singapore (+65) S$

• M1 0.068
• SingTel 0.068
• StarHub Pte Ltd. 0.068

South Africa (+27) Rand

• Cell C 0.3
• MTN 0.3
• Virgin Mobile 0.3
• Vodacom 0.3

Swaziland (+268) Emalangeni

• Swazi MTN 0.378

UK (+44) GB Pounds

• BT (PSTN) 0.055
• Hutchison 3G UK Ltd 0.055
• O2 (BT Cellnet) 0.055
• Orange 0.055
• T-Mobile 0.055
• Vodafone 0.055

USA (+1) USD$

• Alltel (text only) 0.04
• AT&T Blue (text only) 0.04
• AT&T Orange (Cingular - text only) 0.04
• Bluegrass 0.04 Boost CDMA (Nextel - text only) 0.04
• Boost iDEN (Nextel - text only) 0.04
• Cellcom (text only) 0.04
• Cellular South (text only) 0.04
• Centennial (text only) 0.04
• Cincinnati Bell 0.04
• Dobson (text only) 0.04
• ECIT (Cellular One of East Central IL) 0.04
• Farmers Wireless (text only) 0.04
• IVC 0.04
• Nextel(text only) 0.04
• nTelos (text only) 0.04
• PACE 0.04
• Silverstar 0.04
• Sprint CDMA (text only) 0.04
• Sprint iDEN (text only) 0.04
• Suncom (text only) 0.04
• T-Mobile (text only) 0.04
• US Cellular (text only) 0.04
• Verizon (text only) 0.04
• Virgin Mobile (MVNO:Sprint - text only) 0.04
• West Central (text only) 0.04

Please provide your feedback by Feb 28th, 2010

I am going to leave the review open until the end of February before we go any further. During this time, if you know of an alternate supplier that you would like to suggest, simply submit a web case with the link to their service plan, pricing, and we will check it out. While price is a very important consideration, it will not be determinate. We will consider other factors like coverage, spam policy, reliability, etc.

If you have suggestions, please get them in now so we can make the best possible choice for you.