Q-700
Premium SMS FAQ
We're
here to help.
At Quios,
we want you to take full advantage of our services. This FAQ will get you started with a
high level overview of how the short code and premium SMS process works in th US. Visitors who
have experience with short codes internationally will notice that the carrier requirements in the
US are far more restrictive than anywhere in the world.
If you would like more information, we can send you a our FREE 83 page white paper
containing full details on how to run successful mobile marketing and premium billing campaigns
in the US. click
here to request the FREE white paper.
1.
Getting Started
1.1.
What is Premium SMS?
1.2. What is the market potential of Premium
SMS in the US?
1.3. Give me some examples of successful
PSMS applications.
1.4. How do I launch a Premium SMS campaign?
1.5. What are the Government regulations?
1.6. Which carriers are participating?
1.7. What is the typical overall implementation
timetable?
1.8. Ok, I got it. I'm ready to start. What
are the next steps?
2.
Obtaining Common Short Codes (CSC)
2.1.
What is a Common Short Code?
2.2. What is the format of a CSC?
2.3. Why do I need a CSC?
2.4. How do I obtain a CSC?
2.5. How much will it cost?
2.6. Am I guaranteed to be able to use
my CSC, once I obtain approval?
2.7. What's the difference between a random
and a vanity CSC?
2.8. Can I use shared Short Codes?
2.9. Ok, I got it. I'm ready to start.
What are the next steps?
3.
Setting up a Short Code Campaign
3.1.
I got my CSC, how do I get my service activated?
3.2. Can Quios help me obtain individual
carrier approvals?
3.3. What are the carriers' approval criteria?
3.4. What types of content are acceptable?
3.5. Can I launch m-commerce services?
3.6. Can I launch subscription services?
3.7. Can I launch non-premium services
with my CSC?
3.8. How do I connect my application to
the various carriers?
3.9. Do I need a specific billing interface?
3.10. What SMS features are supported
with the various carriers?
3.11. Where can I find the Quios connection
API details?
3.12. I don't want to use an API, can
Quios manage the entire campaign
for me?
3.13. Ok, I got it. I'm ready to start.
What are the next steps?
4.
Receiving Payment
4.1.
What can I charge my end-user?
4.2. Do carriers offer MO or MT billing?
4.3. What are the costs involved in setting
up a campaign ?
4.4. What are the short code lease costs?
4.5. What are the short code provisioning
costs?
4.6. What are the service charges?
4.7. What are the outpayments?
4.8. What's the difference between premium
and standard rates?
4.9. What about charge-backs?
4.10. What are the payment terms for the
short code lease charges?
4.11. What are the payment terms for the
service charges?
4.12. What are the payment terms for the
outpayments ?
4.13. What about end-user refunds?
4.14. Are there any message charges involved
in premium transactions?
4.15. What is the end-user paying for
the premium transactions?
4.16. How is the revenue share determined?
4.17. What is the revenue share and invoicing
process?
4.18. Will I get paid for all my submitted
messages?
4.19. What management information reports
are available?
4.20. Ok, I got it. I'm ready to start.
What are the next steps?
1. Getting
Started
1.1.
What is Premium SMS ?
Premium
SMS or PSMS is a mechanism whereby the mobile phone user or
end user pays a premium for either sending or receiving a
text message. The premium charge is billed on his mobile phone
bill or deducted from his prepaid credit. A portion of this
premium charge is shared with the content/application provider
(the ‘outpayment’).
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1.2.
What is the market potential of Premium SMS in the US?
According
to IDC (US SMS Forecast, 2003-2007) the US SMS market is growing
at a compound annual rate of 28%. Over 12 billion SMS messages are sent every
month (CTIA website). According to Forrester, 76% of all 18-24 yr old are active text
message users, 58% of the 25-34 age group, 43% of the 35-44, 33% of the 45-54, 22% of
the 55-64, and 19% of the 65 yr old and older are active texters.
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1.3.
Give me some examples of successful PSMS applications.
Check out
examples of PSMS campaigns for
examples of how to use PSMS.
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1.4.
How do I launch a Premium SMS campaign ?
First,
you need to obtain a Common Short Code (See Obtaining
CSCs for more details on how to do so). Secondly, you
project will require individual carrier approvals (of course
we obtain those on your behalf - see Setting
up a PSMS Campaign). Thirdly, you need to integrate your
application with our gateway so that you can receive and send
PSMS messages (see our documentation
APIs for technical details).
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1.5.
What are the Government regulations ?
There is
no independent regulatory body in the US to regulate Premium
SMS services. Service restrictions are imposed by the respective
carriers and hence will differ between carriers. However,
we highly recommend that Customers follow the Code of Conduct
of the Mobile Marketing
Association for all PSMS campaigns that have a marketing
focus.
1.6.
Which carriers are participating ?
12 carriers
are participating in the CSC project: Verizon Wireless, Cingular,
AT&T Wireless, Sprint, T-Mobile, Nextel, Virgin Mobile,
Dobson Communications, US Cellular, Cricket Communications,
Western Wireless and Alltel. Following carriers have implemented
Premium SMS billing: Verizon, AT&T/Cingular, Sprint/Nextel/Boost,
T-Mobile, Alltel, Dobson/Cellular One, and Virgin Mobile. As more carriers are implementing Premium SMS, Quios
will extend its network to include them.
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1.7.
What is the typical overall implementation timetable ?
While
implementation varies greatly depending on the nature of the
campaign, following timetable can be used as a rough estimate.
We assume that ‘x’ is the launch date of your
campaign:
x
- 70 days: |
complete CSC form,
obtain CSC approval. |
x - 60 days: |
start carrier approval requests |
x - 15 days: |
short code is provisioned. Start
of transmission and billing integration testing. |
x : |
launch of PSMS campaign |
x + 60 days: |
first revenue reaches customer
account |
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1.8.
Ok, I got it. I'm ready to start. What are the next steps?
Contact
us to receive our FREE white paper and a customized quote.
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2.
Obtaining Common Short Codes (CSC)
2.1.
What is a Common Short Code ?
A short
code number is telephone number, traditionally 4-6 digits
in length (5 or 6 digits in the US), which is specific to a network
operator (or a number of networks if they have formalized
an agreement between them). A short code number is allocated
to you for your mobile campaign – there is scope for
you to choose from a range of available numbers. Note that
you can combine up to 8 price points on the same short code.
Some carriers do impose restrictions on which services can be
combined on the same code. More details can be found in our
FREE white paper.
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2.2.
What is the format of a CSC ?
In the
US, a short code is either 5 digits long from 20000 until 99999, or
6 digits from 222222 to 999999.
Short codes are allocated on a first come, first served basis.
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2.3.
Why do I need a CSC ?
There are
2 reasons why you need a short code: (i) a short code is the
number associated with your application, and gives end-users
the possibility to send a message to your application. The
short code is the destination number of the message they send.
(ii) a short code is associated in the carrier's billing systems
with a premium charge. Sending a message from your application's
short code to an end-user will trigger the premium billing.
In addition to these technical reasons, there are significant
commercial reasons to obtain a short code. Short codes are
easy for customers to remember, and some short codes have
great branding potential.
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2.4.
How do I obtain a CSC?
You can
obtain your CSC from www.usshortcodes.com, or alternatively,
have Quios manage the process for you. You need to fill out
the order
form to obtain short code approval as well as pay the
required short code lease fees. Please contact
us to get the process started.
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2.5.
How much will it cost?
Short codes
can be leased for 3/6/12 months. Random short codes cost $500
per month, vanity short codes $1,000 per month. The lease payment needs
to be made upfront for the entire period.
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2.6.
Am I guaranteed to be able to use my CSC, once I obtain approval?
No. Once
your CSC is approved and paid for, no one but you will be
able to use that number for the duration of your lease. However,
that doesn't mean the carrier will approve the campaign associated
with the short code. You will need to obtain individual carrier
approval for each campaign that is associated with your short
code. Quios takes care of all administrative requirements
and will handle the approval process for you.
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2.7.
What's the difference between a random and a vanity CSC ?
A random
short code is a (5 digit) code that is assigned to you randomly. It
is a dedicated short code (ie. no one but you will be able
to use the number) but the number is selected at random. With
a vanity short code (5 or 6 digits), you decide what the number will be (subject
to availability). You can select an easy to remember number
(‘12345’) or a number that offers branding possibilities
for your business (‘APPLE’ or ‘27753’
for Apple Computer). Check here
to see if your CSC is still available.
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2.8.
Can I use shared Short Codes ?
Yes, shared short code can be
deployed in certain circumstances. If you share your code with multiple customers,
you will ultimately be responsible for all activity on that code; you need to ensure that
all activity falls within the campaign approvals you've received from the carriers, and you
need to make sure to enforce all carrier requirements related to consumer permissions.
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2.9.
Ok, I got it. I'm ready to start. What are the next steps?
Contact
us to receive our FREE white paper and a customized quote.
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3.
Setting up a Short Code Campaign
3.1.
I got my CSC, how do I get my service activated?
Once you've
obtained your CSC, getting your service activated requires
completion of following steps:
(i) Obtain carrier
approval
(ii) Provisioning of CSC on carrier networks
(iii) Account set up with Quios
(iv) Integration with Quios platform
(v) Carrier certification
These steps are further detailed below:
(i) Obtain
carrier approval
Each carrier has the right
to opt-in or out of any short code campaign for any reason.
Carriers don't have to justify their decision. Quios uses
the order
form filled out for the CSC acquisition to obtain the
necessary approvals. Approvals are typically obtained within
4 weeks of initial submission depending on the carrier and
the type of campaign.
(ii) Provisioning of the
CSC on carrier networks
Once approved, the carrier
will initiate the technical activation process of the short
code. This usually takes between 1 and 2 weeks depending
on the carrier.
(iii) Account set up with
Quios
Quios will provision a customer
account within 24 hours after receiving the necessary customer
information as per this account
provisioning form.
(iv) Integration with Quios
platform
Quios supports XML/SOAP (‘Qcaster4.0’)
as well as SMPP for connecting your application to our gateway
platform.
Click here for further information about our APIs.
(v) Carrier Certification
Carriers require end-to-end
testing of applications before launch of service. Quios
will coordinate such testing between customer, Quios, and
the respective carriers.
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3.2.
Can Quios help me obtain individual carrier approvals ?
Yes, Quios
handles the approval process for you. You fill out the order
form and we do the rest. We will identify possible problem
areas and help you correct those so as to maximize your chances
for speedy carrier approval.
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3.3.
What are the carriers' approval criteria ?
Carrier
approval criteria vary widely. Here are a couple of general
guidelines:
- All carriers will
reject adult, gambling, or violence related campaigns. AT&T Mobility
will reject all campaigns involving an alcohol brand.
- Nextel, Boost, and Alltel
will reject binary message campaigns (with content such
as ringtones, icons, etc.). T-Mobile restricts Java applications
and games to a pre-approved 'white list'.
- Verizon will reject
all chat campaigns. T-Mobile limits chat campaigns to 99c per message,
Sprint to 50c per message, and Dobson only allows unlimited chat for
a monthly subscription fee.
- Sweepstake based
campaigns are generally ok, but will take longer to approve
because of legal review required prior to approval.
- T-Mobile will reject
m-commerce based campaigns (where the value of the service
is unrelated to the mobile phone).
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3.4.
What types of content are acceptable ?
Carrier
content guidelines can be summarized as follows:
- No adult, gambling,
violence related content, or content that is unlawful, harmful,
threatening, defamatory, obscene, harassing, or racially,
ethically or otherwise objectionable. Also not allowed are
services that facilitate illegal activity, promote violence,
promote discrimination, promote illegal activities, or incorporate
any materials that infringe or assist others to infringe
on any copyright, trademark, or other intellectual property
rights.
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3.5.
Can I launch m-commerce services ?
M-commerce
services are services whereby the value of the service is
unrelated to the mobile phone. Example: paying for your parking
ticket by SMS, paying for WIFI access through SMS, etc. Carriers will
evaluate their participation in m-commerce services on a case-by-case
basis, except for T-Mobile who always rejects them.
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3.6.
Can I launch subscription services?
Yes, all
carriers support subscription services. It is very important
to be clear about how end-users can opt-out of a subscription
service. Cingular requires monthly subscription only.
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3.7.
Can I launch non-premium services with my CSC?
Yes,
you can. The Quios gateway supports both premium and non-premium
messaging. Please see the pricing
sheet for details on standard messaging. This feature
is most commonly used in marketing campaigns where brands
want the benefits of 2way messaging and easy to remember short
codes, but without charging end-users. Also, customers can
use this feature to send normal information messages to end-users.
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3.8.
How do I connect my application to the various carriers?
By working
with Quios, you will only need one connection to our platform,
either using our SOAP API (Qcaster4.0)
or our SMPP
interface. Quios takes care of the routing and billing interfaces
with the various carriers.
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3.9.
Do I need a specific billing interface?
No. The
advantage of working with Quios is that billing will be totally
transparent for you. The billing with the various carriers
will be triggered by the premium short code that is assigned
to your campaign.
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3.10.
What SMS features are supported with the various carriers?
- binary messaging:
Cingular, AT&T, T-Mobile, Sprint, Nextel (please note:
while binary messaging may be technically possible, some
carriers will not approve premium campaigns that include
binary messaging --- see 3.4
- handset delivery
receipts: AT&T (TDMA only), Verizon, Sprint, Tmobile,
Nextel
- dynamic originators:
not supported
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3.11.
Where can I find the Quios connection API details?
Quios offers
a choice between an XML/SOAP based interface (called Qcaster4.0)
or SMPP
v3.4.
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3.12.
I don't want to use an API, can Quios manage the entire campaign
for me ?
Yes, marketing
agencies and brands often rely on Quios for the execution
of the entire campaign. Quios and the marketing agency/brand
together design the message flow between the brand and the
end-user, and Quios will manage the entire campaign on behalf
of customer, providing customer will real-time traffic reports
and management intelligence information to monitor the success
of the campaign.
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3.13.
Ok, I got it. I'm ready to start. What are the next steps?
Contact
us to receive our FREE white paper and a customized quote.
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4.
Receiving Payment
4.1.
What can I charge my end user ?
Each network
operator is responsible for setting its own range of tariff
rates from which you can choose a tariff to charge your customer.
Therefore it is possible that you may have to charge a different
tariff from operator to operator. However, there are a number
of price points that are available across all major US carriers:
$0.25, $0.30, $0.35, $0.40, $0.45, $0.50, $0.59, $0.75, $0.99, $1.00, $1.25, $1.50, $1.75,
$1.99, $2.00, $2.25, $2.49, $2.50, $2.99, $3.00, $3.99, $4.99, $5.00, $5.99, $6.99, $7.99,
$8.99, $9.99, $11.96, $15.00, $15.96, $19.99, $29.99. Boost restricts premium SMS tariffs to
$6.99. We highly recommend you use
one of these common price points for your cross carrier campaigns
since it will highly simplify your marketing and communication
efforts to promote your service to end-users.
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to top
4.2.
Do carriers offer MO or MT billing ?
Carriers
in the US charge on the Mobile Terminated message.
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4.3.
What are the costs involved in setting up a campaign ?
There
are three types of costs involved in setting up a campaign:
(i) Short code lease costs.
These are the costs for acquiring a short code.
(ii) Short code provisioning costs. These
are the costs for provisioning the short code on the various
carrier networks.
(iii) Service charges. These are the costs
for setting up and maintaining the service between you and
Quios.
See price
sheet for details.
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4.4.
What are the short code lease costs?
Short codes
are leased from Neustar, not from the carriers themselves.
Neustar is charging a monthly fee for leasing short codes.
See price
sheet for details.
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4.5.
What are the short code provisioning costs?
Some carriers
are charging a fixed fee to provision a short code on their
network and complete the end-to-end testing for message routing
and billing. Hence, the short code provisioning cost, which
is a one-time cost, incurred with every new short code launch.
See price
sheet for details.
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4.6.
What are the service charges?
Service
charges are the setup and maintenance fees charged by Quios
for implementing a connection to the Quios platform, and maintaining
such connection according to the agreed SLA. These costs include
all technical and commercial assistance in implementing cross-carrier
premium campaigns, such as obtaining carrier approvals, assisting
you with the integration, performing end-to-end short code
testing, etc..
See price
sheet for details.
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4.7.
What are the outpayments?
The outpayment
rate is the rate Quios pays back to you based on the number
of messages successfully billed by the carrier per month.
Since rates differ by carrier, they are listed separately. Quios
is the only provider offering the option of a 'Flat Rate' pricing model. For a fixed
fee per month, we will pay you 100% of the outpayments we receive.
See price
sheet for details.
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4.8.
What is the difference between premium and standard rates?
Premium
rates are the outpayment rates (Quios pays you) on premium
billed messages. Standard rates are the message costs (you
pay Quios) for non-premium billed messages.
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4.9.
What about charge-backs?
Contractually,
carriers have the possibility to credit end-users, and deduct
such credit from the revenue share. If this occurs, Quios
will provide a full statement of revenue share and charge-backs.
Charge-backs are not a common occurrence.
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4.10.
What are the payment terms for the short code lease charges?
Short code
lease charges need to be paid upfront for the entire lease
period. Only after such payment is made, can the approval
process with the carriers start.
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4.11.
What are the payment terms for the service charges?
Service
charges need to be paid at least 7 business days prior to
launch of the premium service.
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4.12.
What are the payment terms for the outpayments ?
Carriers
are paying Quios between 45 and 90 days after the end of the
month in which the charge occurred. Quios will pay you within
30 days after receipt of carrier outpayment.
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4.13.
What about end-user refunds?
You assumes
full responsibility for refunding end-users when the situation
arises. Quios assumes no responsibility for refunding end-users.
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4.14.
Are there any message charges involved in premium transactions?
No. A premium
transaction usually consists of an MO message requesting a
service, and a premium charge MT message delivering that service,
and triggering the billing transaction. There may be a small charge
to you for receiving the MO message (depending on the price model you choose) but
there is never a charge for sending the premium billed MT message.
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4.15.
What is the end-user paying for the premium transactions?
A premium
transaction usually consists of an MO message requesting a
service, and a premium charged MT message delivering that
service, and triggering the billing transaction:
(i) MO message: If the
end-user's phone plan includes an SMS bundle, the MO will
be deducted from this credit. If the user does not subscribe
to an SMS bundle, they will be charged the standard rate
for an SMS MO (for most carriers: $0.15, subject to change)
(ii) Premium
MT message: End-users will be charged the specified
premium charge for premium messages on all carriers except
Verizon. On Verizon, end-users will be charged the premium
charge PLUS the standard charge for receiving an MT message
($0.15, subject to change).
(iii) Non-Premium MT message:
End-users will typically incur the regular
MT charge on all carriers.
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4.16.
How is revenue share determined?
Revenue
share is determined from the confirmed billing statistics
provided by the carriers. The carriers take their predetermined
share of the revenue from a campaign and refund to Quios the
remainder. Quios refunds to you your share of the revenue
while retaining a prearranged share (except for 'Flat Rate' pricing in which case we refund you
100% of what we receive). You receive detailed
reports and traffic statements.
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4.17.
What is the revenue share and invoicing process?
- As soon as Quios
receives payment from the carriers, Quios will provide you
with a traffic statement, detailing the volume of premium
transactions and associated revenue share amount.
- You will receive payment for your own revenue share
within 30 days after receipt of the funds from the carrier. Quios employs a self-billing system, so
you don't need to invoice Quios to get paid.
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to top
4.18.
Will I get paid for all my submitted messages?
You are
compensated based on the number of messages the carriers report
in their billing statistics. From past experience, the number
of submitted messages and the number of billed messages often
do not match. The Success Billing Ratio (SBR) is defined as
the number of messages effectively billed by the carrier,
divided by the number of messages submitted to the carrier.
E.g. if you submit 100 messages and the carrier traffic report
only lists 95, the SBR will be 95%. The SBR varies by carrier
and by service. Subscription services tend to have lower SBRs
than one-off services. Other reasons may be insufficient credit
(only for prepaid cards), charge-backs, etc.
Given the low percentage of prepaid cards in the US, the SBR
is expected to be reasonably high (>80%), and very much
dependent on the precise nature of the service. You can significantly
influence the SBR rate by ensuring proper communication of
all relevant terms and conditions and setting the right service
expectations. When end-users start complaining about a particular
service, its associated SBR will drop significantly and carriers
are likely to suspend the campaign.
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4.19.
What management information reports are available?
Quios provides
two types of reports:
(i) Extranet
reports: include summary statistics and detailed
CDRs for all messages managed by the Quios platform.
(ii) Carrier
traffic reports: these are the reports received
from the carrier, detailing how many messages were effectively
billed.
Experience shows that
these two reports will not match completely. See 4.18
for a more detailed explanation on why this is the case and
how it will impact outpayments.
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4.20.
Ok, I got it. I’m ready to start. What are the next
steps?
Contact
us to receive our FREE white paper and a customized quote.
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2011 by eWingz Systems, Inc. All Rights Reserved.
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