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Explain SMS rate hike: Trai

September 12, 2003
By Thomas K Thomas in New Delhi

The Telecom Regulatory Authority of India has sought clarification from cellular operators for increasing SMS (short messaging service) rates from Rs 1.50 to Rs 2 for domestic messaging and to Rs 5 for international messaging.

While Trai has not specified any tariff levels for SMS, the regulatory body's move is on the grounds that the new charges "seemed to be on a higher side."

Most cellular operators such as Airtel, Hutch, BPL and Idea recently increased SMS rates compared with the existing Rs 1.50 per message on an average for all types of messages.

Now, the charges for international SMS has been proposed at Rs 5.

Trai has already held a meeting with cellular operators seeking explanation on the tariff hike.

Cellular operators said SMS charges had been increased only for international messaging which accounted for just 5 per cent of the total SMS traffic.

"Charges for domestic SMS was already Rs 2 and majority of the SMS traffic is within the country. Some operators have also dropped domestic rates to as low as 60 paise per message. The real impact of the hike will affect only 3 per cent to 5 per cent of the SMS traffic," said a cellular operator.
Thomas K Thomas in New Delhi

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