Background on SMS Hubbing

The SMS reach of a mobile operator today, also called the SMS footprint, depends on the roaming agreements the operator has in place. Today there are more than 650 mobile operators, and most operators have between 150 and 400 roaming agreements. Thus, most operators do have bi-lateral roaming agreements with every other mobile operator, resulting in limited SMS footprint. This leads to the fact that the subscribers of the mobile operator can only send messages to the SMS footprint, but not to all destinations in the world. This lack of coverage is leading to unrealized revenues and to customer complaints. The overall cost of establishing bi-lateral relationships, as well as the management required to maintain the agreements, is preventing operators from expanding their SMS coverage.

To solve the issue of limited SMS footprints, the GSM Association has introduced the SMS Hubbing Initiative in 2006, as part of the Open Connectivity project, to create an innovative structure to route SMS messages. SMS hubbing is based on implementing central hubs where SMS can be routed to networks that are not covered by the operators’ roaming agreements. By implementing this solution, operators can avoid the setup and maintenance costs of multiple roaming agreements. By implementing SMS hubbing, operators can achieve quick market entry with a high level of quality for international SMS transmission and reception.

There are currently thirteen different organisations, including TynTec, developing SMS hub capabilities under the GSMA initiative. Meanwhile moves are well advanced to develop appropriate standards for SMS hubbing (Open Connectivity High Level Requirements) to ensure seamless international compatibility and facilitate the SMS inter-working process for operators, who should now be talking to SMS hub providers to take advantage of this new SMS inter-working structure.

Check more information on the GSM Association website.