TRAI proposes interconnect charge for SMS

Category: SMS | 3 Comments | Posted on June 15, 2006

In a consultation paper on regulating SMS, telecom regulator TRAI has proposed a interconnect usage charges (IUC) on SMS. But it acknowledged that there is an apprehension that IUC could increase SMS tariffs and has therefore sought opinion of all the stakeholders by June 30.

What is an Interconnect Usage Charge?

Interconnect charges are paid by one operator to another for terminating calls from the originating operator network to the destination / terminating operator network.

So if a Hutch subscriber calls a Airtel number than Hutch has to pay certain percentage of the call charge to Airtel.

At present, interconnect charges are paid by operators to each other for voice calls.

There is no such charge for SMS.

The move is aimed at compensating operators whose networks are getting choked due to incoming SMS traffic.

“With operators offering different bundled tariff plans for SMS and with SMS being increasingly used as an advertising medium, the SMS traffic imbalance across the operators is increasing. There is a possibility that some networks are burdened with a large proportion of incoming SMS traffic. Thus, there seems to be a need for regulatory intervention to ensure that no operator assumes an unnecessary burden,” TRAI said in the consultation paper.

I believe the problem is aggravated by bulk SMS providers who use their pipe with one operator to blast messages across operators. Since there is interconnect for SMS delivery but no IUC, the operators at the receiving end are forced to carry that traffic without any gains.

Comments

3 Responses to “TRAI proposes interconnect charge for SMS”

Mobile Pundit
July 14th, 2006 @ 4:07 am

[...]

Telcos divided over SMS IUC

TRAI had sought comments from Telcos on imposing Interconnect Usage Char [...]
Sanjay Bhatt
September 2nd, 2009 @ 7:44 am

Sorry for commenting in this issue,
I just wanted to tell every mobile service provider is enjoying fruits of the bulk sms ports they are providing and earning a lot out of it but it is only the issue of those mobile service provider who are not able to maintance or provide a good quality gatewate to the bulk sms service providers and that is why their ports are not been hired…… that is the problem for their fate and making a issue for it and trai is also making money out of it (only one having higher post) …. now just trying to tell to trai people that they have implemented a commom base for mobile numbers to all the customers who want to migrate from one service to another having their own old number but it is only been told and the policy is only made but it is not been implement by any of the mobile service provider why sir why this delay only money matter everwhere not the customer ….. it this time custmer are like ??????>>>>>>> Ye Hai India Meri Jaan………. Bas Khilavo PIlavo aur Khujavo….. Maje Karo.
ankur
October 28th, 2011 @ 3:12 pm

TRAI already has given many tools to stop mobile users to get troubled by bulk smses. But now its killing the telemarketing business by posing such useless charges on them. I don’t think there’s any relevance of this charge and even if there’s a need of it 5p per sms is way too high a charge to be levied. Mr. Sibal is doing nothing but only killing these telemarketing cos and thousands of people associated with them. he’s a big loser…

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TRAI proposes interconnect charge for SMS

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