phonegeek 588 Report post Posted September 5, 2009 (edited) Now, SMS alerts from banks and airlines for a price You may soon have to pay for your mobile alerts from banks and airlines which you currently get for free. Free and bulk SMS providersin India like SMSGupshup, MyToday, Way2SMS say that industry is up for disruptions even as large operators like Airtel, Idea, Tata Teleservices have entered into interconnect agreements which allow for a 10-15 paise charge on each SMS to be paid to the network which has received them. Currently, bulk text messages are sold for as low as 4-5 paise per SMS, and costs might go up to 20 paise per SMS if operators start charging 10-15 paise for termination (the network receiving the SMS). At present, free text messages are used by banks, travel operators, airlines, hotels and restaurants to alert consumers about their ticket bookings, bank accounts, or new offers. Health departments in many states have also started using the service to spread awareness about swine flu. Many coastal states use free SMS to send disaster warnings to citizens. Many panchayats use it to spread awareness about new crops or cattle health. The result. Free text messages may become paid in many services for consumers. On the other hand, it may impact the fledgling Rs 70-crore text message marketing industry. Besides, consumers may get less marketing text messages too. Says Abhijit Saxena, CEO of Netcore Solutions and provider of MyToday brand of free news, stocks and sports SMS feeds: "The agreements between operators like these may completely wipe the free SMS industry out. It's a disruptive thing and there is no way we could be profitable by providing an SMS at 20 paise. Free SMS alerts may become paid with these agreements." Companies like Netcore operate on an advertising revenue-based model for survival, where in a free SMS is inserted by a text ad. Hyderabad-based V V Raju, CEO of Way2SMS, one of the largest free SMS service provider with over 50 lakh subscribers, also feels the move would adversely impact the fledgling industry. "However, he feels that VAS providers will have to enter into deals separately with operators now," Way2SMS also provides free email alerts via SMS on mobile phones. An SMSGupshup official, however, said that they were deeply concerned and were redesigning their strategy because of this move by the operators last month. Many companies under the Internet and Mobile Association of India are planning to approach the telecom regulator Trai to regulate the operators. "We are going to fight it out with Trai as our members are affected by it. Levying high interconnect SMS charges will impact the industry," says Subho Ray, president, IAMAI. But it might not bear too much fruit as regulations allow interconnect charges. Says telecom consulting firm BDA Connect's Kunal Bajaj: "Currently, SMS interconnect charges are under forebearance by Trai which means operators can charge any amount for termination. On the one hand, large operators might gain in the short term from this move. But in the long run, they may lose as it will wipe out the free SMS industry." In contrast, an official from a large operator said that it is unfair for VAS industry to say that they should not pay up if they are using our network. On the other hand, many in the VAS industry suggest that interconnect charges should remain low at 1-2 paise to allow for profitability. Says Mobile marketing association's India co-Chair Rajiv Hirnandani: "Already, marketing through industry was ailing with regulations like Do Not Disturb. This move will impact it more." Currently, the SMSes which you get on the mobile have two letters pre-fixed to them. For instance, a 'TM' message might mean that it is sent from Tata Tele Maharashtra. Source : Economic Times Edited September 5, 2009 by saurabh159 Share this post Link to post Share on other sites
Greatest 55 Report post Posted September 5, 2009 unbeleivable... they are looting aam aadmi..!! someone should start a morcha... lol.... Share this post Link to post Share on other sites
commonman 228 Report post Posted September 5, 2009 An SMSGupshup official, however, said that they were deeply concerned and were redesigning their strategy because of this move by the operators last month. Many companies under the Internet and Mobile Association of India are planning to approach the telecom regulator Trai to regulate the operators. "We are going to fight it out with Trai as our members are affected by it. Levying high interconnect SMS charges will impact the industry," says Subho Ray, president, IAMAI. Says Mobile marketing association's India co-Chair Rajiv Hirnandani: "Already, marketing through industry was ailing with regulations like Do Not Disturb. This move will impact it more." Currently, the SMSes which you get on the mobile have two letters pre-fixed to them. For instance, a 'TM' message might mean that it is sent from Tata Tele Maharashtra. this could be a blessing in disguise as it would possibly mean the real end of sms advertising that even the much hyped "do not disturb" could not control much. As for the banking SMS, most banks already charge the customer for such services. Share this post Link to post Share on other sites
santhoshavanoor 7 Report post Posted September 5, 2009 Why banks and airlines are charging for these sms's? They are already deducting some taxes and additional charges for the communication to the customers. I don't know why they want Rs.1 or Rs.2 from each customers. Our government or TRAI should want to stop from these actions. Share this post Link to post Share on other sites
supernova 47 Report post Posted September 5, 2009 . For instance, a 'TM' message might mean that it is sent from Tata Tele Maharashtra. i thought tm is for telemarketer . as in haryana also i am getting msg of my local supermarket and colleges also for with TM- messages Share this post Link to post Share on other sites
Sadikk 301 Report post Posted September 5, 2009 DAPO limit effect... interconnect in sms?... looting.. Share this post Link to post Share on other sites
vishalmcp 8 Report post Posted September 6, 2009 DOT or TRAI should react to this & it should be stopped. Although all the operators loot customers by some or the other way & now looting us for even getting SMS. this is ridiculous. Share this post Link to post Share on other sites
phonegeek 588 Report post Posted September 6, 2009 Yes, the regulator has to step in to stop this non sense... Share this post Link to post Share on other sites
supernova 47 Report post Posted September 6, 2009 trai should be having some notification regarding this ... operators cant mint money like this Share this post Link to post Share on other sites
KanagaDeepan 1,084 Report post Posted September 11, 2009 Even SMS incoming while international roaming is FREE almost all over world... BIG LOOTERS...... Share this post Link to post Share on other sites
