Telecom operators have reportedly urged the Department of Telecommunications (DoT) to adopt the Telecom Regulatory Authority of India’s (TRAI) definition of international traffic, potentially boosting SMS revenue by over INR 400 crore annually.
In a letter, the Cellular Operators Association of India (COAI) appealed to telecom secretary, Neeraj Mittal, requesting the DoT to align the unified license agreement with the TRAI’s guidelines on international and domestic traffic, and emphasizing the need for clarity and consistency.
The COAI requested the DoT to adopt the TRAI's recommendations and amend the unified license agreement and related rules to incorporate the updated definitions of international and domestic traffic.
Last month, the TRAI proposed that SMS messages originating from or terminating on any electronic device, computer server, or application located outside India should be classified as international traffic. The COAI believes this definition will provide much-needed clarity across the sector.
Latest: Ministry Seeks TRAI's Clarity on Using Bank Guarantees for Spam Fine
Industry experts predict this update could significantly increase SMS revenue for telecom operators. The stricter classification will reduce instances of international SMS being disguised as domestic messages, ensuring appropriate charges are applied.
Telecom operators and multinational companies (MNCs), including e-commerce giants, have long clashed over SMS classification. MNCs have been accused of routing international transactions through servers outside India while sending SMS through domestic systems to avoid higher international charges.
Currently, TRAI-regulated domestic SMS charges range from 0.2 to 0.5 paisa, whereas international SMS rates vary from INR 2 to INR 5, depending on the country of origin. However, international SMS charges remain under forbearance, allowing telecom operators to set their own rates.
Also Read: TRAI Eases SMS URL Whitelisting Rules to Reduce Disruptions
A2P Classification
The TRAI has also recommended that any incoming Application-to-Person (A2P) SMS requiring electronic devices or systems outside India for transmission or reception should be classified as international traffic.
Telecom operators believe this clearer classification will resolve ongoing A2P messaging issues, especially since A2P messaging is widely used by financial institutions, e-commerce platforms, enterprises, and OTT services. These entities often employ SMS aggregators and telemarketers without disclosing the origin of their messages, creating ambiguity in terms of classification and charges.
This move is expected to strengthen transparency in the telecom sector and address long-standing industry challenges.
Read More:
TRAI Pushes for Open Infrastructure and Spectrum Sharing Among Telcos
