
TRAI is likely to launch a consultation paper on regulating SMS tariffs, as well as on fixing termination charges for the service.
This comes in light of several new entrants signing interconnection agreements with existing operators at a price much higher than the actual cost. The cost of delivering a message from one service provider to another is, reportedly, less than Re 0.01.
TRAI, therefore, believes that there is significant scope to reduce the average SMS tariff, which currently stands at around Re 0.50.