Hi Daniel,

(as a full disclosure up front: I built SMS service of aerostatus.com, so 
whatever I say below - will be in the context of that project, YMMV 
depending on your project's specifics and targets)

At different phases of the project we were looking at and using a number of 
sms gateways, and as a quick summary - these are my current findings of 
this area:

   1. Depending on where you can place your server - the cheapest way to 
   start might be with a GSM modem connected to a laptop. That was our MVP, 
   running from home with a SIM card on unlimited SMS plan. There's a plenty 
   of SMS gateways available for that setup, from plug-n-play NowSMS for 
   Windows, to Kannel on Linux. Cons - limited speed of message processing 
   (approx 10 SMS per minute at that time), network link must be reliable to 
   guarantee uptime.
   2. We attempted to negotiate some agreements directly with mobile 
   service providers, but it turned up to be less than fruitful - they're 
   (understandably) not interested in talking to the small guys, so unless 
   you're going to send hundreds of thousands of messages per month - talking 
   to the resellers will give you a much better result (in terms of both 
   contracts and prices). It wasn't in Australia, though, but given we had the 
   same experience in a number of countries across the globe - I guess it's 
   the same everywhere, and it generally makes sense.
   3. The best way to minimise the price of a message is to get a number of 
   uplinks to resellers/gateways in different countries. Prices vary wildly, 
   and as we don't care about latency and how many hops there are between our 
   server and a reseller - identifying you primary destinations and choosing a 
   reseller with low prices for that destination gives a certain edge. Also - 
   talk to their sales and push for a discount, you can often get high-volume 
   discounts without actually committing for high-volume packages.
   4. Numbers provisioning is usually the hardest part, if you aren't happy 
   with the default options. Generally resellers have a set of numbers ready 
   to go, letting you choose one of those, or if you want something of your 
   own - you can send in your SIM card/etc. Still it's definitely not 
   realtime, and has to be taken care of as needed. Mind, though - we never 
   really had a need for real-time provisioning of numbers, so there might be 
   something better, but I'd expect it to be more expensive.
   5. Ruby support - doesn't matter. All resellers and gateways I worked 
   with provide some kind of HTTP interface, so the integration is a breeze. 
   Mobile operators, though, are a different story - SNMP is the rule there, 
   with a number of more messaging-specific protocols also thrown in. Might be 
   a pain to integration with, but thankfully - we didn't have to.

I can't really give you any specific recommendations/contacts without 
knowing your target countries first, but if you want to discuss things in 
more details - feel free to get in touch off the list, I'd be happy to 
share the experience.

On Saturday, August 25, 2012 7:06:35 AM UTC+10, Daniel May wrote:
>
> (cross-posted on Silicon Beach Australia, apologies if you get duplicates)
>
> Hi,
>
> Starting to build an MVP.
> Need to use an interactive SMS gateway/service where:
>
>    - My back-end can send/receive/process SMS through the gateway
>    - Numbers can be easily provisioned (international numbers would be 
>    good)
>    - Ruby support is ideal
>
> There's stuff out there but wanted to leverage your concrete experience :)
> And low cost is also good :)
>
> Much thanks,
> Daniel
>

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