ravi_patent 28 Report post Posted November 5, 2009 (edited) http://economictimes.indiatimes.com/Telecom/After-call-charges-SMS-rates-may-be-next-to-tumble/articleshow/5198216.cms Paying 50 paise to Re 1 per SMS, depending on your package? Well, the cost to your mobile service provider of delivering your message to another mobile network is less than 1 paisa. That's because an average SMS consists of 1KB data, which takes a fraction of a second for transportation and termination. This revelation not only belies claims that India has among the lowest telecom tariffs in the world, it could also set the stage for SMS rates to fall sharply. Voice calls are already being offered at 1 paisa per second. As new entrants flood into the market, SMS tariffs could become the next major frontier of the pricing war now raging in the Indian mobile services industry. SMS and other value-added services form 10% of the Indian telecom industry's annual Rs 1 lakh crore-plus revenues. The current regime followed by telecom operators is `bill and keep'. This means your operator keeps the entire amount that he bills you for the SMS and pays nothing to the network on which the SMS is sent. This is for two reasons. First, the proportion of traffic across networks is roughly equal, and second, the cost of termination is negligible. Trai has so far refused to regulate SMS tariffs along with some other tariffs under what is known as forbearance. Forbearance is usually adopted by regulators when they believe that competitive markets are working and tariffs reflect true costs. As it turns out, the true cost of sending an SMS would never have come to light if new entrants had not been forced to sign interconnection agreements with existing operators at a price that is far higher than the actual cost. Several potential new entrants told TOI this points to a clear need for immediate regulatory intervention. If the price of sending an SMS reflects true costs, it should fall to no more than a few paise, they point out. While telecom minister A Raja has been talking about reducing telecom tariffs by bringing in new competition, it is ironic that factors driving telecom tariffs are coming to light due to infighting between existing operators and due to lack of pro-active regulation. Bejon Misra, chairman, CCEA or Cell for Consumer Education & Advocacy told TOI, "Recent developments have shown that India's claim of having the world's lowest tariffs is not true. Trai must promptly intervene to prevent cartelisation by incumbents aimed at defeating the interests of consumers by preventing cost-based tariffs." Predictably, the Cellular Operators Association of India (COAI) has a different view. Speaking to TOI, its acting director general T R Dua said, "Trai has followed forbearance and that should remain its policy." Several incumbents refused to comment on the true costs of terminating an SMS but admitted to the existence of a big margin. Stein-Erik Vellan, MD of Unitech Wireless, told ToI, "The lack of cost-based Interconnection Usage Charge (IUC) is perhaps the most significant anti-competitive practice that is hindering free and fair competition. It needs to be overhauled. The regulator made an exception to its policy of forbearance in the spirit of fair play when it intervened earlier to reduce IUC charges for voice calls from 30 paise to 20 paise. Trai must undertake a similar regulatory intervention to create a level playing field in the industry". Unitech Wireless may be among the first new entrants to launch service in December. As more new entrants prepare for launch, Trai may have no choice left but to intervene. A senior Trai official admitted to TOI that the last review in March had not included a new tariff policy for SMS. "However, new operators have to survive and flourish so we will need to intervene if they complain to ensure a level playing field," he said. Experts and consumer activists, however, argue that given Trai's own cost data from its IUC regulation of August 2006 vintage, it need not wait for complaints but should act decisively and immediately. Edited November 5, 2009 by ravi_patent Share this post Link to post Share on other sites
supernova 47 Report post Posted November 5, 2009 consumers gonna benefit Share this post Link to post Share on other sites
vishalmcp 8 Report post Posted November 6, 2009 i agree with u friend, as more & more players enter, more competition, this means more benefit to the us the users..... surely sms rate should go down, should be between 5p to 10p per sms whether local or national. Share this post Link to post Share on other sites
sougatadc 358 Report post Posted November 6, 2009 I am already enjoying SMS rate of 5p (local or national) with Tata Indicom's 'SMS All India Pack 1000' with a monthly Rental of Rs. 50 which allows me to send 1000 Local & National SMS to any phone. This facility is not available in Maharashtra & Goa. Share this post Link to post Share on other sites
KanagaDeepan 1,084 Report post Posted November 6, 2009 I am already enjoying SMS rate of 5p (local or national) with Tata Indicom's 'SMS All India Pack 1000' with a monthly Rental of Rs. 50 which allows me to send 1000 Local & National SMS to any phone. This facility is not available in Maharashtra & Goa. Is it so???? I am also on the same plan and for me 3000 Local/national/roaming SMS FREE @ Rs50/month, which comes to 1.67p/SMS... I think, Tata reduced the SMS count now , since I activated this pack may be two years back... Share this post Link to post Share on other sites
sougatadc 358 Report post Posted November 6, 2009 Is it so???? I am also on the same plan and for me 3000 Local/national/roaming SMS FREE @ Rs50/month, which comes to 1.67p/SMS... I think, Tata reduced the SMS count now , since I activated this pack may be two years back... Yes, you are right. I used to use the same SMS pack before. But when I switched my call plan to a newer attractive one, the 3000SMS pack was withdrawn. I had to choose the new 1000SMS pack. I think you are not venturing newer attractive voice plans which Tata Indicom has launched time to time. Two years' time is quite a long time, my friend. Share this post Link to post Share on other sites
Saurav 22 Report post Posted November 6, 2009 In normal tariff Plans SMS rates are much higher, So telecoms earning a lot from this. Share this post Link to post Share on other sites
supernova 47 Report post Posted November 6, 2009 in blackberry reliance giving special plans and with that free sms from 20000 to 50000 offnet free and onnet upto upto unlimited free Share this post Link to post Share on other sites
KanagaDeepan 1,084 Report post Posted November 7, 2009 Is it so???? I am also on the same plan and for me 3000 Local/national/roaming SMS FREE @ Rs50/month, which comes to 1.67p/SMS... I think, Tata reduced the SMS count now , since I activated this pack may be two years back... Yes, you are right. I used to use the same SMS pack before. But when I switched my call plan to a newer attractive one, the 3000SMS pack was withdrawn. I had to choose the new 1000SMS pack. I think you are not venturing newer attractive voice plans which Tata Indicom has launched time to time. Two years' time is quite a long time, my friend. Not like that my friend... Actually I changed my tariff 2 times in those 2 years (BusinessSilver to BizSilverRoam and to Roam450 now---2 months back only) ... All you have to do is to make a tariff change CALL 121 & dont tell them anything about AddonPack... While changing from BizSilverRoam to Roam450, I told them to retain my T2T pack(Rs75 initially and Rs99 2 months back)... Since I told about T2T, they changed my T2T pack from 75Rs to 99Rs... And I told nothing about my SMS jumbo pack, so it is continuing to be 3000SMS FREE (written in my Detailed bill) for Rs50... Hope it will help somebody here... Share this post Link to post Share on other sites
sougatadc 358 Report post Posted November 7, 2009 I never used to tell the customer care executives about my addon packs (especially about my SMS jumbo pack as it was free for me, activated to me by one of my TataIndicom friend). I use to enjoy 3000 SMSs for free previously. But when I wanted to migrate from Business Silver into New Platinum plan (as it allows full talktime of Rs350 and the rent becomes effectively zero) they told me that my SMS jumbo pack is not allowed with New Platinum plan. They also sent me an Excel sheet of addon packs compatible with different plans. Still I chose to migrate into the new plan as it saves money as the call rate is cheap (any local call is 50p), allows full talk value (Business Silver gives Rs 150 out of Rs 224 rental, effective rent comes to Rs 74, and the call rate is more, especially STD @ 1.50, previously it was Rs. 2.65). In the process, I lost the SMS Jumbo pack (it was free for me, now I pay Rs 50 for 1000 SMSs), free call conferencing (now I pay Rs 25 for it), a total of Rs 75 which gets balanced by full talk value of the New Platinum plan against Rs 74 less talk value of Business Silver plan. Still I gained in other counts: my call charge became less (local landline calls became 50p instead of Re 1) and I am saving Rs. 50 on STD Jumbo pack (Re 1/min is default for my current plan as against Business Silver plan which needed the STD Jumbo pack to make it Re 1/min). I seldom cross 700 SMSs per month, so I chose to compromise. Share this post Link to post Share on other sites
KanagaDeepan 1,084 Report post Posted November 8, 2009 I never used to tell the customer care executives about my addon packs (especially about my SMS jumbo pack as it was free for me, activated to me by one of my TataIndicom friend). I use to enjoy 3000 SMSs for free previously. But when I wanted to migrate from Business Silver into New Platinum plan (as it allows full talktime of Rs350 and the rent becomes effectively zero) they told me that my SMS jumbo pack is not allowed with New Platinum plan. They also sent me an Excel sheet of addon packs compatible with different plans. Still I chose to migrate into the new plan as it saves money as the call rate is cheap (any local call is 50p), allows full talk value (Business Silver gives Rs 150 out of Rs 224 rental, effective rent comes to Rs 74, and the call rate is more, especially STD @ 1.50, previously it was Rs. 2.65). In the process, I lost the SMS Jumbo pack (it was free for me, now I pay Rs 50 for 1000 SMSs), free call conferencing (now I pay Rs 25 for it), a total of Rs 75 which gets balanced by full talk value of the New Platinum plan against Rs 74 less talk value of Business Silver plan. Still I gained in other counts: my call charge became less (local landline calls became 50p instead of Re 1) and I am saving Rs. 50 on STD Jumbo pack (Re 1/min is default for my current plan as against Business Silver plan which needed the STD Jumbo pack to make it Re 1/min). I seldom cross 700 SMSs per month, so I chose to compromise. So the JumboSMS pack was waived off to you... ANY WAIVED OFF ADDON PACK will be chargeable if you change the tariff plan any time... Initially when I got connections (15) the 75Rs Tata2Tata pack rent was waived off.. When I changed to BizSilverRoam, they started charging Rs75 for T2T and then after my blackmail for disconnections (18 connections @ that time), they waived off JumboSTD rent instead... (At Rs100 rent, STD will be Re1 instead of Rs2.65, even in roaming)... Two months back I switched to Roam450... OOOPS.... Sorry for offtopic..... On Topic:- With call charges reduced to a good extend, SMS is the next way to go... Hope every operator will give FREE SMS offers now... Share this post Link to post Share on other sites
sougatadc 358 Report post Posted November 8, 2009 Hope every operator will give FREE SMS offers now... Optimism.... I like it. Let us hope for it to arrive soon. Share this post Link to post Share on other sites
