Indian Telecom Operators followed a “bill and keep” regime for SMS (zero SMS termination rates, in practical terms) for a long time. The incumbents, led by Airtel, decided to impose a 10 paise / SMS termination charge on incoming SMS at various times in the past couple of years. The move was driven by increasing incoming SMS imbalance between the incumbents and the new entrants – as the latter had started selling massively discounted SMS packs in the market and this led to a sharp increase in incoming SMS volumes on incumbents’ networks without them getting compensated for the same.
Incumbents’ decision to change SMS Interconnect [IC] agreements led to several cases in the TDSAT – these were settled in the incumbents’ favor by the TDSAT. SMS IC rates have been at 10 paise / SMS since then. Continue reading TRAI Recommends SMS Termination Fee – Negative for Incumbents