Online SMS vs Phone Based SMS Gateway

Year 1:

Year 2:

Assumptions:

1. You are sending 1000 SMS per day (1st 100 SMS are cheaper i.e. 5 paise)
2. Since your daily usage is 1000 SMS and first 100 SMS per SIM are cheaper therefore we are using 10 devices.
3. Each device costs Rs 5000 (though Rs 4000 device from Intex and Karbon are already in the market).
4. Software license cost is per year for our Android application. Renewals are 25% discounted.
5. In market transactional SMS are charged at around 25 paise to 35 paise for less than 1 lakh volume per month. We are taking 25 paise (on lower side).
6. In 2nd year the difference is huge and will recover your investment on devices also.

Verdict:

Phone based SMS though our Android application is a clear winner here as total investment for 3,65,000 SMS in a year you are paying Rs 80,250/- vs Rs 91,250/- for an online service and in second year the difference is over 4 times.

Few other advantages of Mobile SMS Software:

1. No pre-paid model. You are paying to your vendor on post-paid basis so no initial investment for a long term.
2. You are paying to your vendor only for delivered SMS unlike online SMS services.
3. No restriction over the service.