Hubbing does not replace bilateral agreements. Every operator has the need to establish roaming agreements in order to provide subscribers with the possibility to roam outside their home network. Outside this frame of main roaming agreements that generate the majority of international traffic for voice and messaging, it makes sense for mobile operators to allocate SMS traffic that belongs to non-connected destinations to an SMS hub. Benefits With the SMS Hubbing model, an operator looking to increase their international SMS coverage does not need to manage multiple bi-lateral agreements. Mobile operators can simplify this by connecting to a hub. The SMS Hubbing model reduces complexity for operators, as well the cost for SMS interworking agreements. Mobile subscribers also take advantage of an enlarged SMS reach, being able to send and receive message to all countries and networks. Ubiquity and simplicity in increasing SMS coverage SMS Hubbing allows operators to manage a single legal, technical and billing relationship rather than hundreds of additional roaming agreements for SMS messaging only. Mobile operators have been gradually outsourcing non-core functions to invest on areas that need a closer management of the operator, as well as focusing on areas that have a direct interface to customers. The hub concept follows this trend, removing a costly and complex area of technical interface and replacing it with a more efficient and effective outsourced solution. Business model Under the GSMA's SMS Hubbing structure, a hub will negotiate a transit fee with an originating operator on a per-SMS basis for the use of the hub. As is the usual practice, the originating operator will also pay a termination fee to the terminating operator, also on a per-SMS basis. Other types of hubbing Beyond SMS, hubbing can be applied in different areas, such as MMS. Because of many interoperability problems, many operators generally connect to an MMS hub, which route the messages more efficiently on behalf of the operator. See also Roaming SMS References External links SMS Hub Architecture GSM Association Making SMS Hubbing a Reality, 160 Characters OC compliant SMS Hubs Mobile technology Text messaging