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External Short Messaging Entity (ESME) is an external application that connects to a Short Message Service Center (SMSC) to engage in the sending or receiving of SMS messages. The term was coined by Aldiscon.
SME is a term used in many cellular circles to describe a network entity (mobile/cell phone) that can send/receive messages. ESME (pronounced EZ-mee) is essentially one of these but without all the wireless aspects; i.e. it is connected via TCP/IP, X.25 or similar. On SMPP 3.4 protocol specifications ESME refers only to external sources and sinks of short messages as Voice Processing Systems, WAP Proxy Servers or Message Handling computers, and it specifically excludes SMEs which are located within the Mobile Network, i.e., a mobile station (MS).[1]
Typical examples of ESMEs are systems that send automated marketing messages to mobile users and voting systems that process SMS votes (Pop Idol, Big Brother).
SMSC uses protocols such as SMPP, UCP, OIS, CIMD, SMCI all of which denote the concept of an ESME connecting to an SMSC. [2]