Noting that a few older GSM service providers levy SMS termination charges on new operators “unilaterally and in a discriminatory manner”, Telecom Regulatory Authority of India has asked them to strictly comply with the rules.
Telecom companies pay each other an interconnection usage charge (IUC) for using each other’s networks for originating, terminating or transiting calls or SMSs. “It was brought to the notice of the authority by a number of service providers that discriminatory termination charge for SMS are being levied by some service providers,” Trai said.
Although Trai did not name any operator, the advantage lies clearly with older GSM operators because of the huge subscriber base they enjoy. In March 2009, Trai had added a new schedule, saying, “IUC for short message service shall be under forbearance, provided such charges are transparent, reciprocal and nondiscriminatory.” It added, “... also in a view of the fact that by and large, the arrangements prevalent today are ‘bill and keep’ and mutually agreed reciprocal arrangements, the authority believes the service providers would continue with these arrangements, in a fair, transparent and non-discriminatory manner....”
The authority also said Bharti Airtel and Idea Cellular have concluded agreements with some service providers specifying IUC for SMS, while the rest are still in the process of entering into similar agreements. This has resulted in a situation in which the charge being actually applied is different for different service providers.