The result of offering unlimited SMS facility for a nominal amount by many GSM operators will prove to be a cause for concern to cellular subscribers.
While operators offering such services are attracting more subscribers, other GSM operators are feeling the pinch as these messages terminate at their network.
In other words, it is right to understand that those offering such services are gaining at the cost of other players who do not offer SMS at rock-bottom prices.
For a cellular subscriber, it means only one thing -- a hike in SMS tariff is ahead.
According to a source from a well-known GSM operator, there is a clear indication that all operators will increase SMS tariffs in the coming months.
"While it has already created a dent in our margins, it is clear that we will soon ask other operators to pay a termination charge for every SMS. The operator, on the other hand, is bound to pass on this burden to the customer," the source said.
However the source added that it was not clear as to when GSM operators would take a call on this stand.
"As every operator is waiting for the other to make the first move, it is certain that once someone asks for a termination charge, it would have a trigger effect in the industry," the source said.
While assessing the current scenario, it is clear that all GSM operators are very clear on not taking on this burden for long.
On one hand, they do not want to be the first party to ask for termination charges, while on the other, the dent in margins is proving to be a burden.
On whether increase in tariffs would go well with subscribers, the source is confident that a customer would go for quality of service at the end of the day.
"It will finally boil down to the number of value adds that any operator would provide at the lowest possible price," the source said.
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