TRAI IUC Charges on SMS

Telecom regulator is considering a review of the charge that telecom operators pay each other for text messages — possibly even discarding it — a move that could trigger another clash with financially strapped older telcos. IUC stands for Interconnection usage charges. IUC for SMS, which may include the possibility of scrapping the charge since a few months ago.

The IUC for messages stands at Rs 0.05 per commercial text message and Rs 0.02 for individual consumers. The rates for domestic messages were last revised on May 2013, while the charge for international incoming messages was left to be decided by the market.

SMS termination charges are the charges, which are payable by originating access provider to the terminating Access Provider for each SMS, terminated by it on The network of Terminating Access Provider. TRAI decides to prescribe an SMS termination charge, it should be strictly on the basis of cost and according to their submission, it should be less than 1 paise.

On the other hand, some of the large Telecom Service Providers (TSP) are of the view that the termination charge for all types of SMS should be prescribed at a level, which allows the terminating operator to recover their cost as well as successfully address the concerns of SPAM and pesky SMSs. The authority had prescribed a promotional SMS charge of Re. 0.05 on promotional SMS sent by a registered telemarketer in the seventh amendment to Telecom Commercial Communications Customer Preference Regulations, 2010. Therefore the Authority has also simultaneously released the eleventh Amendment to the Telecom Commercial Communications Customer Preference Regulations, 2010 to prescribe a transactional SMS charge of Re. 0.05 (paise 5 only) Per transactional SMS. In the amendment to the regulations, the provision has been made to exempt Government agencies from the transactional SMS charges.

At present, revenue from traditional messaging makes up 1-1.5% of the industry’s revenue. Reducing or scrapping the charge for text messages could lead to another face-off between the regulator and India’s older telcos, which have contested the decision to reduce the IUC on calls. “There will be an impact, albeit small, and it will be questioned since the revenue as such from this service is very small but it is still revenue inflow,” a senior executive said, asking not to be identified.

IUC is beneficial for the bigger telecom companies because more calls and messages terminate on their networks. The reduction in IUC for voice calls added to the problems of Bharti Airtel and Idea Cellular, already battling a tariff war with Jio.

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What is bulk messaging? How does bulk SMS help your business?

Bulk SMS also referred as bulk messaging simply means sending out a large number of SMS for delivery to targeted mobile numbers. A good bulk SMS Service provider will make the process of sending out these many messages easy with the click of a button. Bulk SMS helps businesses and enterprises to send out important information to their customers. Bulk messaging is widely used for transactions, promotions and mobile marketing.

What’s the difference between transactional and promotional SMS?

Transactional SMS are those that the users have opted to receive and they are usually generated by machine/API whereas promotional SMSs are bulk messages not specific to optin users. 

What are the benefits of bulk SMS for business?

Most businesses usually look for cheap bulk messaging, free bulk SMS or cheap SMS Service provider in India. What they don’t realize is bulk messaging by default is less expensive than any other medium of transactional or promotional communication. The following are the benefits of messaging that’s how business can use bulk SMS services–

  1. Sending of personalized and customized information
  2. Brand awareness to existing users or new users
  3. You can send critical alerts to users. Stock markets and banks use SMS service widely for this purpose.
  4. This is an effective tool for internal or organizational communication
  5. It is still the fastest way to delivery any kind of information.
  6. Automation within a business is not possible without online SMS services.

How to choose the best bulk messaging partner?

A good messaging partner will care for your recipients as much as you do. The following can be the parameters to choose the best Bulk SMS Service provider–

  1. Easy API: Sending bulk SMS to lakhs of recipients must come in handy. Your bulk SMS gateway provider must give you a very easy API or admin panel that disseminates SMS via its SMS gateway in a blink.
  2. Sure-shot SMS delivery: The best bulk SMS partner will have re-routing of messages so effectively that each recipient receives the message come what may.
  3. Add-ons: A convenient bulk SMS solutions company should have easy add-ons. For instance, C2SMS various add-ons like bulk sms excel plugin, bulk sms mobile app, rewarding reseller program etc will give you endless opportunities to make your business communication easy, smooth, productive and easy on pocket.
  4. International bulk SMS service: The best bulk messaging provider will give you international bulk SMS gateway facility by default. C2SMS gives you bulk international sms service in 190+ countries across various sectors and industries.

Does C2SMS have dedicated OTP service and does it supports International SMS?

Yes,  we do have OTP sms for International with voice otp backup.

Is DLT mandatory and can I able to send SMS with DLT registration ?

Yes,  DLT registration is mandatory, and you can still able to send API sms with our default sender id for few days.