Short messages may be used to provide premium rate services to subscribers of a telephone network.

Mobile terminated short messages can be used to deliver digital content such as news alerts, financial information, logos and ring tones. The VASP providing the content submits the message to the mobile operator's SMSC(s) using a TCP/IP protocol such as the Short message peer-to-peer protocol (SMPP) or the External Machine Interface (EMI). The SMSC delivers the text using the normal Mobile Terminated delivery procedure. The subscribers are charged extra for receiving this premium content, and the amount is typically divided between the mobile network operator and the value added service provider (VASP) either through revenue share or a fixed transport fee.

Mobile originated short messages may also be used in a premium-rated manner for services such as televoting. In this case, the VASP providing the service obtains a Short Code from the telephone network operator, and subscribers send texts to that number. The submission of the text to the SMSC is identical to a standard MO Short Message submission, but once the text is at the SMSC, the Service Centre identifies the Short Code as a premium service. The SC will then direct the content of the text message to the VASP, typically using an IP protocol such as SMPP or EMI. Subscribers are charged a premium for the sending of such messages, with the revenue typically shared between the network operator and the VASP.