Auspi opposes Trai proposal to impose levy on commercial SMSes

The association has termed the proposal unwarranted and requested Trai not to impose termination charges

PTI | October 12, 2011



CDMA telecom operators have opposed the imposition of a termination charge on SMSes as proposed by telecom regulator Trai, saying the move is anti-consumer, anti-competitive and not based on a scientific technical study.

Trai Chairman J S Sarma, while announcing regulations to curb pesky calls and SMSes, had said the authority was actively considering the announcement of a separate regulation by October 15 to impose a 5 paise termination charge on commercial SMSes to make communications tough for telemarketers.

However CDMA operators' industry body, the Association of Unified Telecom Service Providers of India (Auspi), has said the move will benefit GSM players.

"Some of the incumbent GSM operators always propagate high termination charges for calls as well as on SMSes, as it works in their favour. Imposition of any termination charges on SMSes will be anti-competitive, anti-consumer and not based on costs," Auspi General Secretary S C Khanna said in a letter to the Trai Chairman.

Termination charges are paid by an operator from whose network calls or SMSes originate to the one on whose network these communications are made. These charges impact tariffs.

Auspi said the technology to carry SMSes does not require large capital expenditure by telecom operators, hence there is no requirement of any incoming airtime.

"Auspi has worked out a termination cost of one-fourth paisa for each SMS... Specifying a termination charge of 5 paise per SMS will enrich the operators 20 times of the cost and will set a bad precedent," Khanna said.

He added that prices of bulk SMSes are currently 1.5 to 2 paise and if it shoots up to 7 paise per SMS, this important marketing avenue will be eliminated.

"It would result in thousands losing their jobs as a result of this change in regulation, which will add to the plight of lower sections of society," Khanna said.

Auspi pointed out that India being the youngest country, where the average age of the population is 27 years, it is expected that 400 million youth will be scrambling for jobs in 2014 and mobile marketing through SMSes seems to be an important area of opportunity to absorb a certain portion of this population.

Auspi has termed the proposal unwarranted and requested Trai not to impose termination charges on commercial SMSes.

Comments

 

Other News

The 7% growth problem: Why the next 7% will be harder

India has become accustomed to hearing the 7% growth number. It is now less a milestone than an expectation. Yet the paradox is becoming clearer: maintaining 7% growth may be considerably harder than achieving it once. India’s real GDP grew 7.7% in FY2025–26, following growth of 6.5% in FY202

The Constitution cannot be altered: Justice Abhay Oka

Justice Abhay Oka, who retired from the Supreme Court in May 2025, has said that the Constitution of India cannot be altered. Explaining the landmark Kesavananda Bharati judgment (1973) on the basic structure of the Constitution, he said, “This is one judgment that has saved democracy in India.&rdq

How the flora and fauna evolved in the Indian subcontinent

Mammals of India  By A.J.T. Johnsingh and P.O. Nameer HarperCollins India in association with Bombay Natural History Society  

India`s renewable race is moving beyond megawatts

When Shell bought Sprng Energy in 2022, India`s renewable energy market appeared to offer precisely what global energy majors were seeking: scale, growth and a place in one of the world`s largest energy transitions. Four years later, Shell is selling the same business to Aditya Birla Group for an enterpris

Nepal Floods: India keeps close watch on the situation

India`s central government has been keeping a close watch on the situation arising out of the flash flood in Nepal on Wednesday. Union home minister Amit Shah spoke with the chief ministers of Bihar and Uttar Pradesh, the two states that share the border with Nepal, regarding the disaster

UPI completes 10 years of digital payments revolution

The Unified Payments Interface (UPI), launched on August 25, 2016 by the National Payments Corporation of India (NPCI) under the regulatory oversight of the Reserve Bank of India (RBI), has completed 10 years of transforming digital payments in India. UPI has emerged as the backbone of India’s digi

Upcoming Conferences



-->

Archives

Current Issue

Opinion

Facebook Twitter Google Plus Linkedin Subscribe Newsletter

Twitter