Premium SMS is a billing mechanism that enables content and service providers to charge cell phone subscribers for their services. Charges are billed by the wireless carrier directly to end-user's cell phone account.

There are two types of Premium SMS: mobile originated (MO) and mobile terminated (MT). In MO Premium SMS, when a cell phone subscriber sends an SMS to a Premium SMS Short Code, the carrier adds the surcharge to the end-user's cell phone phone account. MT Premium SMS is similar, but the charge occurs when the cell phone subscriber receives a message from a Premium SMS Short Code.

The content/service provider decides what amount to charge the end-user in accordance with the type of service offered. The charge could be for a subscription to a cell phone service (e.g. monthly subscription to receive sport scores), or simply a one-time charge (to vote for a favorite song/band or download a ringtone for example). Charges range from $0.49 to $9.99.

Premium SMS operates under a revenue-sharing model. A percentage of the Premium SMS revenue is kept by the wireless carrier to cover costs associated with billing and delivery. The remainder to payed to the content/service provider. The percentage withheld by the carrier depends on the carrier, price-point, and volume. The average range is between 40% and 50%.

Unwired Appeal's PSMS platform employs a versatile shared short code system that makes launching PSMS events fast and affordable. Contact us for more information and find out just how easy it is to get started sales@unwiredappeal.com