SMS charity donations: O2 cuts charges

Industry: Thurs 12th November 2009

O2 will reduce SMS charity charges to 10% of donated revenues from November. In effect charities will benefit from an extra estimated 10p for every donated pound.

Registered charities must use a dedicated 70 prefix short codes to receive the 90 per cent of the donation. The charge covers O2's network costs, VAT on the cost of the SMS message, insurance against bad debt and a range of third party costs.

Charity donations are now exempt from VAT, however it is still payable on the operator or aggregator's costs.

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