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Can someone please explaind me what is DLR and how it used in sms gateways?

+1  A: 

It is a URL callback for Delivery Reports. Instead of the gateway logging the activity it will callback the provided URL using a querystring at the end with the parameters of the delivery report.

So in order for the URL callback to work you'll need a HTTP webserver with a URL that listens for incoming GET requests:

http://www.example.com/dlr.php

then requests are sent to it like so

"http://example.com/dlr.php?page=dlr&status=[status]&answer=[answer]&to=[to]&ts=[ts]&id=[id]"

The full listing of documentation can be found here.

Metalshark