In a recent communication, telecom operators of A2P SMS services, has informed its valued customers about an upcoming price revision for their services. This decision navigates through a period of industry transition, characterized by the adoption of next-generation technology and compliance with various statutory regulatory guidelines. The company acknowledges the need to enhance its infrastructure and deploy state-of-the-art platforms to stay in pace with the dynamic market landscape.
Higher SMS bill for Amazon, Google, Meta as telcos hike rates
Telecom operators have increased the SMS tariff by 25% for overseas tech firms like Amazon, Google, Meta, and others, for sending messages to their customers in India.
Telecom operators have increased the SMS tariff by 25% for overseas tech firms like Amazon, Google, Meta, and others, for sending messages to their customers in India. The latest hike, which takes the tariff to Rs 4 per message, comes at a time when these firms have been expressing concern that the telcos overcharge them for sending SMS — OTP, confirmation code, order updates — to their customers in India.
Though these firms have operations in India, telcos charge them international long distance SMS rates because their servers located abroad are used to generate messages to consumers in India.
To avoid paying higher charges, companies like Amazon and Uber have lately reduced their volume of SMS and instead started communicating using their own apps or emails to communicate with their customers.
Emails sent to Bharti Airtel, Vodafone Idea, and Reliance Jio regarding the recent hike in international SMS rates did not elicit any response till the time of going to the press.
“SMS is a reliable and trusted mode for an organisation to communicate with their clients. If the telecom operators keep on increasing the SMS tariffs, then suddenly we will see a sharp dip in volume of SMSes from companies as they would resort to options such as WhatsApp, their own apps, or emails,” an official at a telemarketing company said.
Companies use services of communication platform as a service provider (CPaaS) players or telemarketers for sending bulk messages to consumers. According to industry estimates, over 1 billion domestic commercial messages are sent every day.
“We don’t see much of a dip in volume with the recent tariff intervention. We are able to maintain our customer base. But yes, if the price keeps on increasing in multiples, there might be some use cases which may get stopped by the enterprises,” said Rajdipkumar Gupta, CEO of Route Mobile.
A crucial factor which contributes to the added rates for international SMSes is the forbearance on termination charges, meaning telecom companies can charge each other any rate when a message sent by a foreign entity terminates on their networks. For domestic transactional messages, the Telecom Regulatory Authority of India (Trai) has specified the termination charge of 5 paise. Overall the domestic SMS charge comes around around 9-15 paise for commercial entities.
Amazon and others have urged Trai to instruct telecom operators to levy domestic rates on them as their server is in India and they have an Indian subsidiary, which serves Indian consumers. However, according to telcos these companies host their applications outside India which is used to communicate with servers located in India and therefore international rates should be applicable to them.
Lately, Trai has also floated a consultation paper with regard to definition of international traffic. The authority has noted that the term ‘international traffic’ has not been defined in the unified licence. As ‘international SMS’ is a type of ‘international traffic’, the authority is of the view that instead of defining international SMS in the unified licence, it would be appropriate to define the term ‘international traffic’.
The price revision, scheduled to take effect on August 1st, 2023, commitment to maintaining and further enhancing the quality and reliability of their A2P SMS services. By investing in technology advancements, the company aims to ensure seamless communication solutions and deliver excellent customer support to its esteemed clientele. Telecom operators have announced their plans to raise prices for A2P (Application-to-Person) SMS services, with an expected increase of 4 to 5 paisa per SMS from the current price tariffs. This adjustment, set to take effect soon, aims to address market dynamics and support operational investments.
The revised pricing structure presents the new rates per SMS for different quantity ranges. These adjustments are designed to align the pricing with the evolving industry landscape, while supporting the necessary investments required to meet regulatory guidelines and enhance service capabilities.Customers need to evaluate the financial implications of these changes. Consequently, they have expressed their willingness to provide detailed information regarding the revised pricing structure. Customers can expect to receive clarification on any changes to the existing service features and billing procedures. Vodafone and other Operators aims to facilitate a smooth transition, ensuring transparency and effective communication throughout the process.
Telecom companies remains dedicated to delivering high-quality services, and the price revision is a necessary step to maintain their commitment to excellence. Customers are encouraged to review the provided information and assess the impact on their organizations. Should any questions or concerns arise, readily available to address them, providing the necessary support and guidance during this transition period.Telecom operators price revision announcement reflects their ongoing efforts to adapt to industry changes, comply with regulatory guidelines, and invest in cutting-edge technology. By doing so, they aim to continue providing reliable A2P SMS services and excellent customer support in an ever-evolving market.
