Do You Need a Modem to Create an SMS Gateway?

There are two main types of SMS gateways: cloud-based subscription SMS gateways you can access from anywhere and onsite hardware-based gateways. Businesses that send many SMS messages may be inclined to use a hardware-based gateway that requires an initial investment in special technology and equipment (including dedicated modems).

australia sms gateway

Equipment Needed to Build an SMS Gateway

To send and receive SMS messages through an in-house gateway, a Global System for Mobile Communications (GSM) modem or GSM phone needs to be physically connected to a computer.

A GSM modem is a device that enables computers and other electronic devices to send and receive SMS messages over a cellular network. It typically has a USB or serial port that connects to a computer. An internal SIM card establishes the connection with the network. If the modem is too slow, you can increase capacity by adding more modems.

With this type of configuration, SMS messages are transmitted from a computer through the GSM model to third-party carriers. From there, messages are forwarded to the designated recipients. Incoming messages are stored in the GSM device’s memory or the internal SIM card.

Differences Between Cloud and Hardware SMS Gateways

There are many reasons why an organisation might choose a subscription-based online SMS gateway versus building an onsite, hardware-based SMS gateway. Here is a high-level comparison of the two options to help guide your selection and determine how to find an SMS gateway

Online SMS Gateways

There are numerous SMS gateway providers on the market. In general, users are charged for each SMS sent, and they can take advantage of the provider’s built-in security measures and features. offers low-cost, no-contract pricing plans for our Australian clients. Our platform offers Application Programming Interface (API) integration, delivery guarantees, and an array of additional features such as two-way communication and the ability to set up a web-to-SMS gateway.

Mobile devices and desktop computers from any location can access cloud-based SMS gateways. These devices could be connected to the internet through a data network, traditional modem, hotspot, cable, broadband, satellite, or other method.

Dedicated, Onsite SMS Gateways

With an in-house gateway, there is an initial investment in hardware and SMS software. Those responsible for the digital marketing campaign can work offline, and an in-house system provides an additional layer of security and privacy for sensitive data.

APIs can integrate other business systems and solutions with the SMS gateway. Multiple features and automation can be layered into the system to address the needs of the business. However, sender IDs cannot be changed on messages sent from a hardware-based SMS gateway.

In addition, a company that opts for an in-house SMS gateway needs to build an in-house technical team to support the platform and associated equipment.

Choosing the Best Option for Your Organization

Technology changes fast. Before buying the hardware and software needed to build and operate an onsite SMS gateway, think about how long it will take for the SMS gateway to become obsolete. 

While the initial investment for a hardware-based system is fixed, there will be additional costs for onsite technical support, ongoing updates and maintenance, and replacement of the gateway at some point in the future. Alternatively, using a low-cost provider like allows you to leverage our array of features without the headache and expense of modems and other equipment.

Contact today to learn how our fast, responsive, and flexible platform can support your direct marketing efforts. Sign up today for a no-risk trial of our platform that provides full access to all our features and benefits–so you can see for yourself how well it works!