Different SMS Billing Models

SMS (short message service) as we all know is so popular now because its one of the cheapest and fastest ways of pass information, be it for personal use or for business purpose

SMS billing models are the various methods in which people are charged for sending SMS. Many bulk SMS platforms use SMS billing to regulate their costs, monitor clients’ payment status, and enhance profitability rates. Bulk SMS messages are charged according to the following.

  1. Text message length
  2. Number of recipients
  3. Text message destination

One SMS Page contains 160 characters including spaces. So the longer the message, the longer the cost. There are 2 major SMS billing models that SMS providers use, and these are,

SMS Billing using Local currency

In this case, the SMS is charged using the local currency of that country. This means that each time you fund your bulk SMS account, it will be credited with the same amount as the currency you paid and you would be charged in your currency. For example, a bulk SMS provider could charge N3 per SMS and when funding you could pay N1000, your bulk SMS account will be credited with N1000 and you will be charged N3 for every SMS you send from that account.

SMS Unit Billing

In this case, the SMS is charged using units and not your local currency.  This means that even after making payment to fund you bulk SMS account, once it is credited it will be converted to units and your SMS will be charged from it. For example, if a bulk SMS provider charges N2 per unit for SMS and you make a payment of N1000 to fund your account, you will be credited with 500 units and not N1000 and each SMS you send will be charge per unit.

Bulk SMS units can be a little bit confusing if not well understood. Many SMS providers today claim they offer the cheapest bulk SMS service in Nigeria. Most of these providers may sell their SMS for as low as 0.90 kobos per unit but go ahead and charge 2.7 units per SMS to a single recipient. The implication here is that a customer may be happy buying SMS units for 0.90 kobos unknown to him that he is invariably paying N2.43 for per SMS.

A good SMS provider charges 1 unit per SMS to 1 recipient. That’s why in ZigaTEXT, we sell SMS units for as low as N2.50 per unit and charge 1 unit per SMS. The bulk SMS units do not expire on Ozioma, so you can use your remaining units any time until you exhaust them.

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