TRAI beats the heat by increasing Transactional SMS rates

TRAI increases rates of transactional SMS by 5 Paise and 2 Paise for normal SMS. End users seen in most debt along with the retailers and small fishes of the market. It will be an easy slip for telemarketers.
INDORE, India - May 25, 2013 - PRLog -- As SMS marketing heats up the market by becoming the most pervasive medium of communication. Telecom Regulatory Authority Of India (TRAI) gives a sigh of relief in the scorching summer heat to all the mobile phone users. By late, SMSs became the biggest irritant of all places and time. To beat this newly growing botheration, TRAI lifts the rate bar of Transactional SMS up to Promotional SMS.  

It is seen that, in the name of Transactional Short Message Service (SMS), the service of Bulk SMS was being majorly misused. Probably this compelled TRAI to impose new norm by charging a termination charge of 5 Paise per Transactional SMS. And, 2 Paise per SMS on operators from where the message originates. Although, nothing is made clear for the increase in rates by TRAI as of now. However, the new regulation will be in action from June 1, 2013.

But, for sure it will impact the entire chain of businesses largely. Industries that really needed service of BULK SMS like all the financial institutes, Banking Sector, Stock Market, Health, and Education will be swayed largely. It will directly affect their Customer Relationship Management system. It is evident that more the prices, lesser will be interactions.

For example, Few banks have already started charging 15 Rupees per year to provide SMS alerts. Likewise, many other banks have strategically reduced sending alerts and interacting with their customers. This will in turn lead to lesser interaction, reduced security, and uninformed updates as a direct effect on common people.

On the other hand, if you see Bulk SMS providers like, there won’t be any substantial effect on them. As their customers will cut short on the bulk but increased prices will compensate them. In fact, there will be gained profits for lesser quantity. But yes, small fishes will definitely die due to increase in rates. End customers will demand SMS at low prices and the bigger operators will disseminate it at higher rates killing the middlemen in between. If you see at the number of resellers in last 2 years, it has drastically fallen, just because of increase in rates.
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Tags:Trai, Bulk Sms, Price Rise, Transactional SMS
Industry:Mobile, Telecom
Location:Indore - Madhya Pradesh - India
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