SMS Marketing Industry News

US Cellular Increases SMS Rates for SMS Marketing Providers

US Cellular SMS Marketing

We’ve just received notice that US Cellular has updated their Commercial Terms, and in doing will start charging SMS providers like Tatango on January 1, 2013, a messaging tax to send messages to US Cellular customers.

The following tax will be applicable to all inbound messages to the US Cellular Network, including all inbound SMS, all messaging associated with PSMS programs, MMS messages, and Free-To-End-User programs running on the US Cellular network. The additional tax per message is below:

  • SMS $0.0035/Message
  • MMS $0.0035/Message
  • FTEU SMS $0.0035/Message

The charges referenced above are in addition to existing SMS messaging fees that SMS providers like Tatango already pay to the carriers. This action will likely result in US Cellular customers being unable to access SMS services offered by businesses, emergency services, and local groups and organizations as the cost to support this wireless carrier will become too large. This will force US Cellular customers to move wireless carriers to gain access to these popular services. Is this really what you want US Cellular?

This reminds me of when T-Mobile tried to raise their SMS rates for SMS providers in 2010, or Verizon Wireless considering a similar charge in 2008, but relenting under consumer and industry pressure.

How do you feel about US Cellular raising SMS rates on SMS providers? Let us know in the comments below.

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