This excerpt taken from the VRSN 10-K filed Mar 16, 2005.
Mobile Content and Application Services
Mobile content services revenues are derived by providing mobile content services including content, aggregation, formatting, mediation and billing and payment services. Revenues from mobile content services primarily consist of monthly subscriber fees for content services. We also provide content services on a transaction basis and recognize revenue upon delivery. For mobile content services revenues, we record the revenue net of the fees from our wireless carriers in accordance with EITF No. 99-19, Reporting Revenue Gross as a Principal versus Net as an Agent.
Revenues from application services are derived by providing global and short messaging services between carrier systems and devices, and across disparate networks and technologies so the carriers customers can exchange messages outside their carriers network. Revenues from application services primarily represent fees charged for the messaging services either based on a monthly fee or number of messages processed.