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Premium SMS rates set to nosedive

August 23rd, 2006

TRAI has directed all the mobile service operators to cut premium SMS rates. What is a premium SMS anyway ? SMS sent to TV contests, or CNBC Guess the Sensex contest or ICICI Bank personal Loan or Win a civic with your lowest unique bid on Airtel network etc are all categorized as premium SMSs. They typically cost between Rs5 through Rs7 per SMS. While your regular SMS costs just Rs0.01.

Why premium SMS sucks ? Because after being chared Rs5.0/SMS the companies don’t even have the goddamn courtesy to notify that you have not won the prize and the cost for them to send this ordinary SMS is just Rs0.01. TRAI has done a good job in notifying mobile operators that the amount they charge to consumers doesn’t justify the servcie they offer. TRAI also argues their is no IUC(Interconnection Usage Charges) on SMS and hence mobile operators don’t have any right to charge such a steep premium.

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