The Telecom Regulatory Authority of India (Trai) recently recommended a new definition of international traffic. This move significantly impacts global giants like Amazon, Google, Uber, and Meta, requiring them to pay higher rates for sending SMS to Indian consumers. Trai suggests that SMS originating from servers outside India be categorized as international SMS and charged accordingly.
Dispute Over Tariffs
Telecom operators argue that global companies use technological interventions to mirror international SMS as domestic ones. These Application-to-Person (A2P) messages, including OTPs and KYC-related notifications, are routed through Indian public telecom networks, bypassing international long-distance routes. Operators call this “grey traffic” and justify the higher charges.
On the other hand, global companies argue that advancements in technology eliminate the need for telecom networks in message transmission. They question why international tariffs apply when telecom networks are not involved.
Lack of Regulation on International SMS Rates
Trai has rejected requests from global companies to regulate international SMS tariffs. Telecom companies currently charge over thirty times the domestic rate, which is around 13 paise per SMS. For domestic transactional messages, Trai has capped termination charges at 5 paise. However, international SMS charges remain unregulated, creating a substantial cost disparity.
The Way Forward
Global companies are expected to approach the Department of Telecommunications (DoT) to contest these recommendations. The DoT has the authority to accept or amend Trai’s proposals. Until then, companies will need to prove their SMS are domestic to avoid paying steep tariffs.
Trai’s move has reignited the debate over fair pricing and the regulation of international SMS traffic, with global companies advocating for more balanced policies.
