Ahh.. I think Alexander is right DELIVER_SM specifies that short_message is a Var 0 - 254 size octets
Then specified earleir in the spec. is that Var 0 - 254 is an Octet String, not a C-Octet String Octet Strings are not Null terminated. Looks like Mobxxxxay's gateway is buggy. I'll try and get them to fix it. Alex