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Our Bureau

Expresses concern over high charges of premium messages

New Delhi , Aug. 21

The Telecom Regulatory Authority of India (TRAI) has decided not to tamper with the existing tariff scheme for short messaging services being offered by the various cellular operators. The telecom regulator had earlier issued a consultation paper to look at the possibility of imposing carriage and termination charges on SMS and regulating the tariffs of premium rate short messages.

However, with most operators and consumer groups expressing reservations against the move, the TRAI has decided not to intervene at this stage. One of the concerns raised by the operators was that if a termination rate was imposed, it could lead to an increase in the SMS tariffs.

"The overwhelming opinion of the stakeholders and participants during the open house consultations was against disturbing the present regime of forbearance. The Authority has decided that the forbearance on interconnect usage charges for SMS should continue for the present," TRAI said. The regulator had proposed to split revenue earned from SMS revenues into three, allowing the operator on whose network the SMS terminated to keep a share of the revenue.

Premium messages

While the TRAI has also kept away from prescribing the tariffs of premium SMS services as well, it expressed concern over the high charges of premium SMS. "While the average prevalent tariff is approximately Re1 for a local SMS, Rs 2 for national SMS and Rs 3 to Rs 5 for an international SMS, premium SMS rates are generally in the range of Rs 3 to Rs 10.

Twenty-five billion SMS were sent in FY 2006 compared to 12 billion in FY 2005. On an average, a subscriber sent 41 SMS per month during FY 2006, as compared to 31 in 2005.

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