Telnyx, a Founders Fund-backed company and the world’s only self-service, full-stack communications platform, has completely restructured its SMS pricing, serving as a powerful example of how disruptive technology can lead to innovative pricing models.
Disrupting The Communications Industry
New businesses are springing up every day, challenging incumbents with better technology at lower prices. And just as companies like Airbnb and Uber have shaken up their respective industries, Telnyx is looking to change telecommunications on a global scale.
“We’ve been disrupting the communications industry since 2014,” said Ian Reither, Telnyx COO and co-founder. “We’re creating the future of communications with an intelligent telephony engine built on a private, global network. We believe our SMS pricing should be just as innovative.”
SMS Is Effective
Text messaging has become one of the most effective ways for organizations to engage with customers — its wide reach and high open rates appeal to businesses across industries and use cases. Companies like Telnyx have capitalized on this demand by creating intelligent APIs that make it easy for other businesses to build high-quality messaging into their own applications.
However, many SMS API providers are not priced for all users, jacking up their rates for sending and receiving text messages. These high-priced providers often neglect the fresh startups, small healthcare providers, schools and other organizations that depend on text messaging for customer service and outreach.
“We set out to make universal communications a reality for everyone, not only big businesses with excess capital to spend,” said Reither. “We work on behalf of all organizations, including the underserved businesses that need cutting-edge technologies like enterprise-grade SMS to grow and scale.”
Telnyx today announced price drops for its programmable SMS services, including U.S. long code, toll-free and MMS messaging. Telnyx customers can now send messages for only $0.0025, an industry-leading rate among full-featured SMS providers that charge up to 70 percent more to send and receive messages.
Reither explained that many of Telnyx’s competitors rely on aggregators for phone numbers and core communications functionality, resulting in marked-up prices to make up the difference. Telnyx maintains a private inventory of owned phone numbers that can be used to send and receive messages from any mobile operator in the world.
“Because we maintain complete control over our network and phone numbers, we’re able to cut out the middlemen that the Twilios of the world are so dependent on. This allows us to avoid costly markups and pass those savings on to our customers.”
Another area where Telnyx excels is security. Providers like Twilio don’t currently sign HIPAA Business Associate Agreements (BAAs), generating concern about their ability to maintain healthcare privacy standards. Telnyx, on the other hand, signs BAAs for its messaging services to further its dedication to protecting user information.
But Telnyx takes security a step further with a private infrastructure and end-to-end encryption, keeping customer data safe from the malicious threats lurking across the typical provider channels.
“Every other CPaaS provider in the market routes its traffic over the public internet, which offers neither the reliability nor security of Telnyx’s private backbone,” said Reither. “Telnyx owns its own global carrier network, pulling traffic off the public internet and into a private, secure environment.”
With more tech investors and startups looking east of Silicon Valley, Telnyx holds an advantage with yet another important group: investors.
According to a recent New York Times article, investing in San Francisco startups means “you’re basically paying landlords, Twilio, and Amazon Web Services,” said Founders Fund Partner Cyan Bannister, discussing the companies that provide these startups with messaging services and data hosting.
Telnyx is taking its fight to the competition this week, heading to San Francisco to promote the new SMS pricing structure during Twilio’s Signal Conference, Aug. 6-7. Telnyx team members will be hitting the streets in a decked-out smoothie truck, handing out free drinks to conference attendees — and showing them how they can get feature-rich SMS for way less than their incumbent provider.
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