India's push SMS industry is facing a challenge with operators Airtel and Tata Indicom increasing the interconnect charges applicable on application to person (A2P) SMSs on each other's network. A2P SMSs include marketing information text messages relayed by enterprises such as banks, airlines, theatres, or by content aggregators. These push SMSs, when sent via telecom networks are being charged an 'interconnect' fee by the receiving operator. With the change, the cost of SMS is expected to increase from around 4 to 5 paise per SMS, to as high as 10-15 paise. Tata Indicom's increase in interconnect fees to Airtel network has been effective since November 1, 2009. Harsh Janeja, Head of Bulk Business, Tata Indicom, confirmed to Medianama that the hike was instituted 5 days ago and that a mail was circulated to all aggregators informing them of the new pricing: 15 paise per A2P (application to person) SMS delivered to an Airtel number via the Tata Indicom network. Implications: Positive Or Negative? This stepping up of prices, the matter of intense discussions amongst telecom industry executives, will hit off-deck mobile marketing companies and enterprises, which may not absorb it and choose to pass on the cost to the consumer or advertiser. Prabhat Kumar, Director at ACL Wireless, said that "In terms of pricing, this will affect our contracts with customers and the fixed prices some had established. Also, alerts for customers will be impacted. It is a tough time and now, aggregators with most operator partnerships will be the ones who will gain." ACL…
