New Update on TRAI Guidelines for SMS operations
TRAI has finally come up with new regulations to curb SMS issues between operators.
This guideline will bring regulation in the unorganized SMS market.
The guidelines issued by TRAI applicable from June 1,2013 are given below
1. SMS termination charge of 2 paise applicable across networks.
2. Currently only promotional SMS were charged termination cost of 5 paise. Now after the implementation of new regulation, Transactional, Promotional as well as Normal SMS will be charged a termination cost of 5 paise.
Termination charge is paid by the carrier on which the SMS or call originated to the carrier whose subscriber it is delivered. Without any termination charge, the carrier on whose network the SMS terminated would get nothing and yet is expected to deliver the message using its resources.
Overall, the SMS termination cost now will be ~7 paise.
Why did TRAI bring about this change ?
As per TRAI, small operators were selling bulk SMS to telemarketers at very low rates and the revenue earned by them was because of the large volume of Transactional and Promotional SMS sent to subscribers of other network with out having to pay Termination Charge.
For example- An e-commerce company sending an SMS alert regarding some discount offer to its existing customer as a Transactional SMS can escape the termination charge of 5 paise as per the old regulation. The content and nature of the SMS is promotional but still companies continued to send it via the Transactional route to save on the 5 paise termination charge on promotional SMS.
How will this impact Businesses who send out these SMS’s?
With these new regulations the cost of a Transactional and Promotional SMS will be almost the same. Also the prices of SMS have increased in the past 6 months to make up for the decline in revenue due to reduction in SMS volume across all Operators.
We feel that operators might not immediately pass on the cost benefit to companies, they will evaluate the SMS volume and then bring about the pricing change.
We will keep you updated in case of any SMS pricing change. We do not rule out a drop in SMS prices in the near future 🙂
Also – if you get bugged by continuous spam calls & SMS – use our partner “India Against Spam”