Toll-free Surcharge on Verizon

1. What’s changing with Verizon Toll-free phone numbers?

Similar to A2P 10DLC (local numbers), Verizon is going to start charging an additional surcharge fee of $0.0025 for every outgoing SMS message segment on Toll-free phone numbers. 

2. How does the pass-through fee on Verizon Toll-free impact me?

This new surcharge means that you will start paying a pass-through fee on Toll-free numbers. As a result, they will no longer be as cost-effective as A2P 10DLC.  

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 codes and Toll-free numbers.

  • In total, you will pay $0.0083 for Toll-free A2P, vs $0.0075 for A2P 10DLC. That is a 10.7% increase in cost.

3. But deliverability on Toll-free A2P is higher, so it makes sense that the cost is higher?

While historically, Toll-free numbers had a higher messaging throughput rate and deliverability, long codes now provide the same benefit. 

Verizon opened up A2P routes on long codes specifically to extend long codes’ usability to commercial A2P messaging (alerts, appt reminders, chatbots, notifications, marketing/customer loyalty purposes). 

A2P 10DLC will have lower monthly costs, are sanctioned by the carrier networks, will be much faster to provision, and are in par with the high deliverability of Toll-free numbers.

4. What do I need to do?

There will be no change to your account or services. As soon as Verizon enables these surcharges, we will pass through this fee at no additional upcharge. To ensure transparency, this fee will appear as a separate line item on invoices. 

5. Does this apply to MMS?

At this time, this new surcharge only applies to Outbound Toll-Free SMS messages. Please note that for A2P 10DLC, Verizon is charging an additional surcharge fee of $0.005 for every outgoing MMS message segment.

6. Are the requirements, routing logic, and rate limits the same for A2P long codes and Toll-free on Verizon?

With the messaging space continuing to change at such a rapid speed, we are doing our best to stay informed and keep you up-to-date as soon as we receive any news. We assume that they work the same way, but haven’t gotten confirmation yet from Verizon. We will update this FAQ as soon as we have that information.

7. Are providers outside of Plivo subject to the same pass-through fee on Verizon Toll-free?

All providers--not just Plivo--are impacted equally by this pass-through fee.  

8. What about other mobile networks? Are they also implementing a surcharge for their Toll-free numbers?

Right now, only Verizon is putting forth a surcharge for its Toll-free phone numbers. AT&T has recently announced that all commercial long code messaging to AT&T’s network will need to be sent via their new 10-digit long code (10DLC) A2P service, starting August 15th, and will incur the same surcharge. We believe that Toll-free numbers on AT&T will follow suit and that similar fees will be added for terminating long code and toll-free traffic on other carrier networks in the coming months (T-mobile/Sprint).

9. What if I have additional questions?

We value your continued business with Plivo. If you have any questions, please feel free to contact your Account Executive or our Support Team.

Was this article helpful?
0 out of 0 found this helpful
Didn’t find what you are looking for? Create new ticket