In messaging, the term "short code lease" is used because businesses and organizations do not own short codes outright; they rent or lease them from the governing bodies or providers that manage and assign them. Here’s why:
1. Short Codes Are Issued and Controlled by a Central Authority
- In the U.S., CTIA and the Common Short Code Administration (CSCA) manage the registration and provisioning of short codes.
- Short codes are a limited resource, assigned based on availability, and must follow strict compliance and carrier guidelines.
2. Recurring Costs and Ongoing Compliance
- Unlike standard phone numbers (which can be purchased and retained), short codes require monthly fees for continued use.
- Leasing ensures that organizations maintain compliance with carrier regulations, campaign rules, and auditing requirements.
3. Prevention of Permanent Ownership
- If short codes were sold instead of leased, it would limit the availability of codes and lead to issues with scarcity and hoarding.
- Leasing allows short codes to be reassigned when businesses no longer need them.
4. Carrier and Industry Control Over Usage
- Since short codes are used for high-throughput messaging, carriers require strict control over who can use them and how they are used.
- The lease model allows carriers to revoke access if compliance violations occur.
Essentially, leasing ensures short codes remain available, regulated, and compliant while allowing businesses to access them without permanent ownership.