Whats is Data Coding/ Data Encoding?

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The encoding used with message data is specified with the SMPP parameter data_coding, also called DCS (data coding scheme). The SMPP Server will use this value to decode the data so that it can then be encoded with the encoding scheme required by the carrier.

Coding, Description
0,  Default value. With the SMPP Server this is GSM 03.38
1, ASCII (IA5)
3, Latin 1 (ISO-8859-1)
4, Octet (8 bit binary). To be used for binary content.
8, UCS2 (ISO/IEC-10646) Non English/ Unicode