Startup Idea – Rent a SMS short code

It is an undeniable fact that mobile is *the* platform in India. SMS usage aka texting is probably one of the most pervasive mobile applications prevalent in India. However, if you want to provide an SMS interface to your web-app, there is no easy solution out there. You need to either buy a SMS short code for yourself  (which is pretty darn expensive) or you can take a do it yourself (DIY) approach by connecting a GSM modem to your server and use software like Kannel to access incoming SMS messages.

So, here’s an idea.

Instead, why not buy a short code and then have multiple customers ‘rent’ the short code ? The way it works is – say you get a shortcode ’12345′. You then let each customer reserve a keyword that they can use with this shortcode. So, for instance, if I need to leverage SMS in my app, I reserve the shortcode SDUNIA. Say some one else takes up the keyword FBOOK. Users of my web-app can send an SMS to my app by sending a text to 12345 SDUNIA <msg>. The backend service parses this keyword and decides which customer the SMS belongs to. So, you need to provide an API as well so that your customers can retrieve their SMS messages and use it in their web-app.  You charge the customers a fee as long as they use the service.

This approach has a lot of potential since it saves other startups and other businesses looking for an SMS interface the cost and effort involved in getting their own, exclusive SMS shortcode.They can literally hit the ground running in terms of providing a mobile interface to their app /service.

TextMarks is one such US based startup that does this same thing pretty successfully.

I’m not sure if such a service already exists in the Indian market. Also, one would need to check for any legal issues involved specific to the Indian market.

let me know what you think.

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30 comments

  1. I think a lot of Short Code providers in India provide this option.

    http://www.znisms.com/sms-short-code.html

    SMS GupShup provides a more elegant API and is perhaps easier to get started than negotiating with Short Code providers.

    http://api.smsgupshup.com/

  2. This is already being done almost all short code providers in India. Renting these keywords on shared short codes as opposed to an exclusive code is much cheaper.

  3. Hey Pranav, old one. lots of companies, including Yah

  4. sorry..accidentally clicked submit. What I was saying is that even Yahoo India has been providing this short code service. Have put up a complete list of short code service providers at MediaNama…over 50 of them.

    what no one has done yet, apart from ValueFirst with Alertrix I think, is make it easy to use – where you can log in online and buy a keyword at a price.

    one problem with these short codes now is a TRAI notification, according to which short codes need to have an alphanumeric prefix for identification of their originating operator. This makes it difficult for users to reply to messages. For example, if I query 556655 for Help, I’ll get a response from, say, TM-556655 . I can’t click reply and respond to it because it’s alphanumeric.

    • thanks all for the input and correcting me – i list such ideas as and when they occur leaving the onus of doing the research on those who find it interesting.

      if there are lotsa other companies already doing it, it might not be an easy fare then.

    • (Disclaimer :- I work with SMSGupShup )

      Enterprise SMS GupShup allows you to set up keywords and masks from the online interface. (a Keyword is for directing incoming messages to your webapp whereas a Mask is what shows up as sender Id in the messages that YOU send).

      In fact, Enterprise SMS GupShup is the only provider out there with a complete self-serviced solution. The API is extensive as well as easy to use.

    • Hi Nikhil — just a slight correction there [good that your wrote 'I think' :) ] — it is not Alertrix, it is smsmeon.com (and yeah, both sites are from the stable of ValueFirst) that provides keyword on short-code 56070, for free.
      Whereas Alertrix.com is a free subscription service on SMS.
      – Brijesh

  5. Yes, there are many startups/resellers that rent short code.

    Just google for “bulk SMS software”. Actually, their primary service is bulk SMS from PC, but most of them offer short code renting @ about 4.5 INR p/m

    If somebody already has a server located in-house at office or workplace, they can instead just buy a special number like ones ending with triple digits, or ones that are easy to remember by paying a small premium.

  6. Hi,
    I think that just getting a sim card and putting it “up” with kannel for inbound routing, isn’t the key. The legality involved here is that almost all telcos TOS mentions in the application form, something on the following lines:
    “That, the customer shall use the sim and associated services for the purpose of making and receiving calls, messages, and other services available in the SIM for his *personal use*, not any commercial use.”
    Even if you “bypass” the above, the telcos shall disconnect you and it gets messy, as happened with NetCore of Rajesh Jain ( http://emergic.org/2009/02/17/we-versus-vodafone/ ) . The plea given by VodaFone and Bharti was that NetCore was flouting NDNC norms for alert services, while the truth was that they just could not see someone bypassing the VAS ecosystem, thus denying them their “lion’s share”.

    PS: I am not affiliated with NetCore at present, or in past.

  7. Hi i need to buy a special short code for my company, not the keyword but want to buy a shortcode specific to my company, can you help me where to buy it.

  8. I am currently looking for someone who can rent me a short code. But i am only interested in Premium short codes. I want to charge my customers a fee for the applications I will provide. Any suggessions.

  9. By the way, I can be contacted at centralprocessingusa@gmail.com. I will be marketing within the continental US

  10. Hey Guys, visit this site http://www.valueleaf.com. Probably the only company in the SMS, ShortCode and Email marketing industry with ISO certification. I know few people who are their clients. Have heard great reviews about the service offered. Check this company out.

  11. Lalit M Joshi

    Hi Guys
    I want to know how to get this 5 digit number from mobile network providers such as Airtel, BSNL, Vodaphone or any other. All the information available on net is mainly about the service providers who talk about buying keywords.
    I want to have my own number and not a shared or rented one.
    Please help in case you have any information about this topic.

  12. sms short code is the new tread of marketing products because of uses of mobile phone. According to recent survey about 90% US people read sms and this shows how people interested in mobile. Sending sms through shared short code or own brand short code to customer helps to reach your products to customer. Short code is now used by all popular reality shows, programs, games and election campaigns to send or to populate their message to targeted audiences.

  13. carolyn joseph

    Mobile marketing through shared short code or dedicated short code is the most growing marketing strategy these days to promote brands, business, services and organization. Mobile marketing come in focus in recent few years, especially due to fast growing mobile phone uses across the world. Analyst Estimate that in 2008 about 3.4 billions text messages send worldwide and the response rate of these text messages were about 70%, this statistic attract shoppers, business organization to invest in mobile marketing. Today all top brands and organization using mobile marketing campaigns to promote their products.

  14. I’m exploring the possibilities to starting a short code renting service. Do you know where I can procure the 5-digit short SMS code?

    • Hi Harsha,

      I know some SMS shortcodes that are already configured pan India, have paying corporate clients and are available for a reasonable price.

      Do get in touch if you are still looking.

      cheers,
      Saikat
      +91 98103 03105

      • Hi Saikat,

        I am looking for setting up a 6 digit short code(not buying from resellers). Do you know the process or any contacts?

        thanks

  15. Yahh! SMS short code is one the best to rent and advertise products using sms to millions of mobile subscribers. Short code is very easy and simple way to promote products to billions of mobile users.

  16. Hi, Local city based company – Business Time having footprints in most of the states in India, pioneer in Short Code specially rule based 2 way communication. Working in most of the vital sectors, especially in Hospitality, Education, Media and Retail domain.

    Information is now-a-days instant. Few E.g., Patient admitted to ITCU. Relatives, friends worried about the conditions of the patient. Doing numerous phone calls to Hospital and waiting in a long queue.
    Things are now-a-days simple and instant.

    Type DEMOHOSPITALCONDITION
    and send to premium short code, long code or dedicated virtual number

    Auto response in just a few seconds – explaining patient’s condition.
    Same can be applied for Instant Billing Information.

    http://www.businesstime.co.in

    Cheers,
    Sandip

  17. More detailed explanation of the previous posting

    Type DEMOHOSPITAL [SPACE] CONDITION [SPACE] [PATIENT ID]
    and send to premium short code, long code or dedicated virtual number

    Auto response in just a few seconds – explaining patient’s condition.
    Same can be applied for Instant Billing Information.

    Patient ID will be retrieved from the system responsible for capturing Patient details and billings.

    http://www.businesstime.co.in

    Cheers,
    Sandip

  18. hey,

    I am looking to start a premium sms business to provide shortcodes to organizations. and also sell bulk sms.

    What sort of equipment and software do I need to acquire. kindly advice if there are any free downloads available.

    thanks

  19. Respected Sir,
    We want to get Short Code SMS service from your NETWORK. We have a NGO and we want to earn from the Short Code SMS Service like the radio stations who earn from Short Code SMS send to them by the listener. Our aim is to provide free education to the student of BPL families. We have other sources of earnings to provide free education to the students of BPL families. Besides those earnings, earnings from Short Code SMS service will immensely contribute to the Fund of our NGO. So that we can cover the large number of student under our free education services.
    Sir, Please inform us the about the cost of per Short Code SMS if we want to receive Rs. 3.00 in our account from each SMS? Or please inform us about the percentage shared between the Short Code Service Provider and the Service holder.

    Regards.
    Ataur Rahman
    President
    LUMS NGO

  20. Resently i found a new site for cheap online sms – websendsms.com i should say it is pretty simple and easy to work with.

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