Business

SMS likely to get costlier

Sending text messages to another network is likely to become costlier after the telecom regulator's decision to include a third party to the routing process.

At present, the mobile operators run the short message service (SMS) through bilateral deals with each other.

But in a recent meeting of the Bangladesh Telecommunication Regulatory Commission, it was decided that the text messages will have to be routed through the interconnection exchange (ICX) operators, a move that is set to increase the costs by 2 percent.

Ultimately, users will bear the costs and it will not be good for the industry, said mobile phone operators, adding that they have not received the official directive yet.

Currently, the maximum charge on SMS from one operator to another is Tk 0.5, in addition to 15 percent VAT, 3 percent supplementary duty and 1 percent surcharge. Another Tk 0.01 will be now be added for the extra layer imposed by the BTRC.

Introducing the ICX layer in the SMS transmission will help the law enforcement agencies increase their surveillance, said a BTRC official.

About 1,500 crore text messages were generated in 2014-15, according to the BTRC's annual report. 

Of the total SMS volumes, 50 percent are inter-operator, meaning the ICX operators stand to earn an additional Tk 37.5 crore a year.

“We are earning very little from this segment and every day the government forces us to send crores of SMS on different issues,” said a senior official of an operator, seeking anonymity.

“We provide lots of SMS services for free -- we will have to discontinue those services,” he added.

Another senior executive of a different operator doubts if the ICX operators are prepared to handle the large volumes of text messages generated every day.

In 2012, when there were two ICX operators, the government awarded another 23 ICX licences on political consideration.

Until 2008, the operators also exchanged voice calls through bilateral agreements.

In 2008, the regulator introduced the ICX and since then, all inter-operator calls have been routed through ICX at an additional cost of Tk 0.04 for each minute.

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SMS likely to get costlier

Sending text messages to another network is likely to become costlier after the telecom regulator's decision to include a third party to the routing process.

At present, the mobile operators run the short message service (SMS) through bilateral deals with each other.

But in a recent meeting of the Bangladesh Telecommunication Regulatory Commission, it was decided that the text messages will have to be routed through the interconnection exchange (ICX) operators, a move that is set to increase the costs by 2 percent.

Ultimately, users will bear the costs and it will not be good for the industry, said mobile phone operators, adding that they have not received the official directive yet.

Currently, the maximum charge on SMS from one operator to another is Tk 0.5, in addition to 15 percent VAT, 3 percent supplementary duty and 1 percent surcharge. Another Tk 0.01 will be now be added for the extra layer imposed by the BTRC.

Introducing the ICX layer in the SMS transmission will help the law enforcement agencies increase their surveillance, said a BTRC official.

About 1,500 crore text messages were generated in 2014-15, according to the BTRC's annual report. 

Of the total SMS volumes, 50 percent are inter-operator, meaning the ICX operators stand to earn an additional Tk 37.5 crore a year.

“We are earning very little from this segment and every day the government forces us to send crores of SMS on different issues,” said a senior official of an operator, seeking anonymity.

“We provide lots of SMS services for free -- we will have to discontinue those services,” he added.

Another senior executive of a different operator doubts if the ICX operators are prepared to handle the large volumes of text messages generated every day.

In 2012, when there were two ICX operators, the government awarded another 23 ICX licences on political consideration.

Until 2008, the operators also exchanged voice calls through bilateral agreements.

In 2008, the regulator introduced the ICX and since then, all inter-operator calls have been routed through ICX at an additional cost of Tk 0.04 for each minute.

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