A Premium SMS number is a 3-7 digit number used for messaging that charges a premium price to the end user per sent SMS. End user pays a higher price of the message than for a normal P2P message.
That price can be anywhere from twice as high to even fifty times higher, depending on the market.
The most known use case for premium SMS is when the numbers are used for charity or voting activities. For example, in case of a natural disaster, people can easily send an SMS message to a short code in order to donate funds to help people in need.
Another use case is connected with reality show voting where shows like Big Brother or Voice usually have contestants competing for a grand prize. The show’s viewers can vote and contribute to their favorite contestant success.
Premium SMS numbers are also used for various competitions. This marketing strategy is often used by retailers who, in exchange for the competition opt-in, offer valuable awards like a car or exotic trip.