In a purely SMS based service, it goes without saying that the end users should be able to reach the service reliably via the same medium. Making that happen isn’t very easy. At MyToday, most of our approx. 4 million users interact with our services via SMS. It is through the usual short codes and virtual numbers, more commonly called long codes. Long codes are 10 digit numbers similar to our phone numbers and make it cheaper for end users to reach us and are more popular. It’s understandable as most people wouldn’t want to spend Rs. 3 sending an SMS to a short code, especially if a service involves sending lots of messages.
Our growth has been mostly via word of mouth. So, when users like our service and want to tell their friends and family about it, having a non-changing long code is very important. But, it’s something we haven’t been able to ensure. Not because of lack of effort, but due to circumstances beyond our control. All short and long codes are owned by operators (much like our phone numbers) and leased to service providers. Though our services are opt-in, our long codes have been blocked multiple times by the operator we had leased it from. I’m not sure what the reason for the latest blockage is or if it has even been communicated to us, but, it is sometimes because of complaints from a few users that we are sending them unsolicited messages.
The obvious question is how that can happen when we claim to be an opt-in service. The problem is with the churn that happens in the operator’s user base. If a user with a particular phone number belonging to operator A subscribes to our service, and then migrates to different operator B, stops paying his bill etc. after some time, he stops being a customer of operator A. The phone number will now be assigned to a new subscriber by operator A within a short period of time. This new user hasn’t subscribed to our service and thinks we are spamming him when we continue to send messages. The ideal solution is that service providers need to know when a phone number is assigned to a different user, but there haven’t been reliable ways of getting that information. With churn rates at 6-7% among GSM operators as per an article from Mint, and overall churn rates of 3-5% (a number quoted by a speaker at MoMo Monsoon), and with the growth rates we are seeing in India, I imagine the operators are under pressure to reuse numbers as and when they become available, but there has to be a better way to share that information.

The partial graph above shows what impact a blockage can have. Our then popular long code 9845298452 was blocked some time late on 8th Oct or early in the day on 9th Oct and our users could not reach us at all and there was a massive fall in incoming messages. We got a new number immediately and started using that. One of the first things we did was to inform all our users that they could stop receiving our messages if they so wished using the new number. Some of them did and that is what the spike on the 16th represents. As we are an opt-in service, users opting out is generally a very small number compared to our overall user base, but something they can always do. Now, we are actively losing new users as they can’t reach our service using the popular long code. We have to start the process of making new long codes popular among our user base from scratch, not to mention handling all the support requests.
This may stop being an issue once number portability comes in, as users will retain a number once they get it and re-assignment of phone numbers won’t happen that often. The real solution though is better regulation and dispute resolution mechanisms. There is no incentive for operators to create an ecosystem which promotes innovation in the mobile space and neither is it their job. Unless they are forced to do it, smaller players who are trying to build services that end users want will spend more time dealing with issues like these and engineering their way around the latest obstacle rather than focusing their energy only on what is good for the user. Till that day comes, the cat and mouse games continue!