I've been looking at systems such as txtlocal, esendex and clickatell. I need to send out a very large number of messages and ideally would like to go in at a lower level then using systems like these. Does anyone know how these SMS gateways like I've listed work in terms of actually sending out the messages? Will they have agreements with different carriers and be sending them out programmatically? I've tried contacting some UK carriers directly but as of yet haven't had any success getting any information from them.
Aggregators typically work by talking directly with a mobile carrier's internal SMSC using IP/X.25/frame relay and using a protocol like SMPP/CIMD to request a message send.
They will have connections to multiple networks SMSC's so they can do least cost routing (i.e sending a message to a user on their home network being cheaper).
Here are some contact details for Orange/Voda.
That said, MXTelecom as mentioned by Phill offer a good gateway service, as do mBlox - both of whom have already done all the hard (and expensive) work for you.
Working with an aggregator is definitely worth the effort. They handle the legal contracts with the providers as well as with the auditing services. You can go directly to a provider (e.g. AT&T, etc.) and broker the deal yourself but generally speaking you'll only need that if you have very specific program/campaign needs. Coke, for example, brokered their own deal to get the four-digit shortcode for COKE (2653).
Keep in mind, when working with an aggregator like MXTelecom you'll be signing a contractual agreement with them (usually for 6 to 12 months) and it'll take between 8-12 weeks (in the US) to get your shortcode provisioned and setup. It's not the funnest process, IMHO.
Oh, and don't forget, they will audit your system to make sure it does what it says it will do in your campaign document.
It is also possible to create your own system (at least in the US) and use a long code. One of our original prototype systems was built with Kannel using a mobile phone tethered to an Ubuntu box. With an unlimited plan it was quite nice. Usage is related to your carrier contract so be mindful.
Per your question of how they work... They generally work via an API (HTTP or SMPP are most common). Depending on your in/out volume you may want to put a queue in between your application and the aggregators API.
First if you're going to do any bulk SMS messaging you should get a Short Code. An aggregator will have all the necessary API's/SDK and documentation for you.
Try MXTelecom (AKA OpenMarket)
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