Verizon began imposing a surcharge of $0.0025 for every outbound SMS message segment on one of its toll-free phone numbers starting September 1, 2020. We pass this fee through to you with no additional upcharge. The fee appears as a separate line item on invoices.
How does the pass-through fee impact me?
This surcharge means that toll-free numbers are no longer as cost-effective as A2P 10DLC for SMS. To break it down:
The outbound charge for local numbers is $0.0050/SMS, compared to $0.0058/SMS for toll-free.
The Verizon pass-through fee is an additional $0.0025/SMS for both long code and toll-free numbers.
In total, you pay $0.0083 for toll-free A2P vs. $0.0075 for 10DLC. That's a 10.7% higher cost.
But deliverability on toll-free A2P is higher, so it makes sense that the cost is higher?
In the past toll-free numbers had a higher messaging throughput rate and deliverability, but 10DLC now provides the same benefits.
Verizon opened up A2P routes on long codes specifically to extend long codes’ usability to commercial A2P messaging, including alerts, appointment reminders, chatbots, notifications, and marketing and customer loyalty programs.
A2P 10DLC numbers have lower monthly costs, are sanctioned by carrier networks, are faster to provision, and are on par with the high deliverability of toll-free numbers.
Does the surcharge apply to MMS message?
At this time, this surcharge applies only to outbound toll-free SMS messages. However, Verizon does impose a surcharge of $0.005 on every outgoing A2P 10DLC MMS message segment.
What about other mobile networks? Are they also implementing a surcharge for their toll-free numbers?
Right now, only Verizon is putting a surcharge on its toll-free numbers. AT&T announced that all commercial long code messaging to AT&T’s network will need to be sent via their 10DLC service starting March 1, 2021, with enforcement beginning a few months later. We believe that other carriers will follows Verizon's lead on toll-free numbers in the coming months.
Please contact our support team if you have additional questions.