TRAI prescribes SMS Termination & Transactional Charges

New Delhi: The Telecom Regulatory Authority of India (TRAI) has prescribed cost based SMS Termination Charge of 2 paise per SMS and a Transactional SMS charge of 5 paise per transactional SMS, applicable from June 01, 2013.

SMS termination charges are the charges, which are payable by originating Access Provider to the terminating Access Provider for each SMS, terminated by it on the network of Terminating Access Provider.

As per the prevailing IUC regulations, SMS termination charges are under forbearance. The Authority noted that though the policy of forbearance on SMS termination charge has worked satisfactorily in the past when the use of SMS by the subscriber was limited. In the changed circumstances especially due to exponential increase in the number of commercial SMSs, large imbalance in SMS traffic between the networks of interconnecting service providers, unilateral imposition of SMS termination charge and in case of non agreement, disconnection by some dominant service providers and growing litigations amongst the service providers, the Authority reviewed the policy of forbearance in SMS termination charges and prescribed cost based SMS termination charge.

In order to create certainty in the market, exigencies created by certain dominant players and in order to protect the interests of the consumers, submission of some of the service providers that as per TDSAT order, SMS Termination Charges should be cost based and work done principle, the Authority has prescribed cost based SMS termination charge as Re. 0.02 (Paise 2 only) per SMS.

While doing this exercise, the Authority has observed that apart from promotional SMSs, there is a large traffic imbalance between different networks on account of transactional SMSs also. The Authority had earlier prescribed a promotional SMS charge of Re. 0.05 on promotional SMS sent by registered telemarketer. Therefore the Authority has also simultaneously released eleventh amendment to the Telecom Commercial Communications Customer Preference Regulations, 2010 to prescribe a transactional SMS charge of Re.0.05 (Paise 5 only) per transactional SMS. In the amendment to the regulations, the provision has been made to exempt Government agencies from the transactional SMS charges.

Kerala IT News
Source: PIB

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