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What is an SMS Aggregator?


Video Transcription

Derek Johnson with to, and I’m answering the question, “What is an SMS Aggregator?”

So, when a brand, let’s say Target, wants to send a text message to a customer, and let’s say that customer is on AT&T, the brand, Target, has to send the text message to AT&T, and then AT&T has to forward that text message to their customer. The same has to happen across all the other wireless carriers. So as you can imagine a company like AT&T, or T-Mobile, Verizon, Sprint, they don’t wanna deal with hundreds of thousands of brands over here sending text messages to them. They don’t wanna integrate with them, provide the customer support, that’s a lot of work. And we’re talking everybody from local mom and pop pizza places, all the way up to the Targets, Walmarts, you know, type companies. So it’s just too much work for the wireless carriers. So what they said is, “Hey, let’s put somebody in between to handle this process.” And what they created is SMS aggregators.

There’s only a few in the United States, and what those SMS aggregators do, is sit in between brands and the wireless carrier. And what they do is, instead of a brand like Target sending a text message to T- Mobile and then sending a text message to AT&T to forward off to an AT&T customer or Verizon to send off to a Verizon customer, and they have to connect to all those different wireless carriers. An SMS aggregator actually does all that work for them.

So a brand only has to send to an SMS aggregator, and then the aggregator will figure out which wireless carrier that phone number is using, and then forward it off to the right wireless carrier. Then what happened in the industry, is the aggregator said, “You know what, dealing with these hundred thousand plus brands is really time-consuming, and a lot of support, and we got to provide them software.” That’s where SMS software providers came into play, and that’s what to Tatango is.

We sit in between the brand and the SMS aggregator. Because an SMS aggregator, you know, you have to sign huge contracts, it’s very complex setup, you know, and you have to have huge minimums for your messaging volumes per month, which a lot of brands can’t hit themselves. So an SMS software provider like Tatango will work with thousands of different brands that are out there. We will then send the messages for the brand, so the brand does not need to connect to the SMS aggregator, which is complex and takes a lot of time. And we will send the messages to the SMS aggregator, then the aggregator will send it off to the appropriate wireless carrier, and the wireless carrier will send it off to the customer, you know, the end user of the mobile phone.

So, that’s how text messages go from a brand to an SMS software provider like Tatango, then we send it to an SMS aggregator, and then the aggregator sends it off to one of the wireless carriers. They will send it to all of them, obviously, for a mass text message, because each one of, you know, the users would reside on one of the wireless carriers, and then the wireless carriers would forward that off to their customers.

So that’s the answer to, “What is an SMS Aggregator?”

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