High level view on how SMS works in LTE

The following is from E\\\ whitepaper available here:


In 2010, 6.9 trillion text messages were sent globally and this figure is expected to break the eight trillion mark in 2011. This represents USD 127 billion in revenue for operators. LTE provides the same basic SMS features, such as concatenated SMS, delivery notification and configuration. However, the SMS delivery mechanism is somewhat different. A VoLTE device can send and receive text messages encapsulated within a SIP message. To receive a text message, the encapsulation process is invoked by an IP short-message-gateway in the IMS domain, and the gateway converts traditional Signaling System Number 7 (SS7) Mobile Application Part (MAP) signaling to IP/SIP.


To ensure that text messages are routed via the gateway, the home location register (HLR) of the recipient needs an additional function to return a routable gateway address back to the SMS-C on receipt of an SMS-routing request.


When a VoLTE device sends a text message, it should perform the encapsulation. The gateway extracts the text message inside a SIP MESSAGE signal before passing it on to the SMS-C.


However, if the VoLTE device is configured to not invoke SMS over IP networks, text messages can be sent and received over LTE without the need for any SIP encapsulation. A received text message will reach the mobile switching center server (MSC-S) of the mobile softswitch system in the same way as it does today. The MSC-S will page the device via the SGs interface with the Mobile Management Entity (MME) of the EPC system. Once a paging response is received, the MSC-S will pass the SMS on to the MME, which in turn tunnels it onto the device. Due to the support for SMS delivery and IP connectivity provided by LTE/EPC, MMS works seamlessly.


For more technically minded people, there is a whitepaper that covers SMS in detail available here.