The telecom regulator is set to slash mobile short message service (SMS) charges by at least 50 percent, a move that is expected to encourage users to air more texts.
The Bangladesh Telecommunication Regulatory Commission (BTRC) decided in a meeting to cut SMS charges for all mobile operators. Under the move, the commission is likely to cap the maximum rate for each SMS, so that operators can charge as low as they like.
“The commission will disclose a new tariff plan for SMS services for the six mobile operators soon,” said Zia Ahmed, chairman of BTRC, yesterday. “We are planning to cut the rate by at least 50 percent from the existing tariff.”
BTRC formed a committee to recommend the tariff plan by this month, he said. “The existing charge for a SMS is a bit expensive, in comparison to voice service, although transmitting a SMS does not cost extra.”
Mobile operators welcomed the move. However, the exiting Tk 0.20 interconnection tariff for a SMS remains a hurdle to making a huge charge cut.
Bangladesh’s telecom market is yet to have a tariff plan for SMS.
Mobile customers have to pay a minimum of Tk 0.40 to a maximum of Tk 2 for each SMS in the six-operator market.
Presently, 53.83 million customers are using mobile phones in a population of 150 million in Bangladesh. The telecom penetration rate is around 34 percent.
SMS has become popular even though the tariff is greater for a SMS than a minute of a voice call. The cost of a voice call in the market today ranges between Tk 0.25 and Tk 1.25.
Market insiders said the ability to communicate confidentially with others without talking has popularised the SMS service.
Texting has been in practice since 1997 in Bangladesh, when Grameenphone launched the service for the first time. Subsequently, teens made the thumbing practice even more popular, as they could send greetings at once to a vast social circle during festivals.
Industry insiders estimated that the 53 million mobile users generate more than 20 million SMS a day, with the volume doubling during festivals like Eid, Valentine’s Day, Friendship Day and New Year’s Eve.
The market’s top operator Grameenphone charges between Tk 0.50 and Tk 1 per SMS, while the second largest operator Banglalink chares Tk 0.75 – Tk 1.
Aktel charges Tk 0.40 for an SMS to other Aktel users, while to charges Tk 1 for SMS sent to other operators.
Warid’s SMS charge ranges between Tk 0.29 and Tk 0.49.
Citycell offers the lowest tariff for SMS in the market — each to the same operator costs between Tk 0.40 and Tk 0.25 and between Tk 0.90 and Tk 0.85 to other operators.
State-run TeleTalk offers each on net SMS Tk 0.66 and Tk 1 for SMS to off net customers.
The SMS charge should be reduced, as technically it is a hassle free service, said Zakiul Islam, president of the Association of Mobile Telecom Operators Bangladesh (AMTOB).
When mobile networks are fully saturated with voice service, networks for data service like SMS remains free. “So, we should encourage people to communicate more via SMS at affordable costs,” Islam said.
Chris Tobit, chief executive officer and managing director of Airtel Bangladesh operations, said, “We are yet to know the BTRC decision. If the regulator decides to lower SMS tariff, it should be viewed in connection with the high taxation in the sector, which impacts profitability of our sector.”
In India, Reliance Mobile recently took an aggressive move and cut SMS tariff to only one paisa for non-commercial use. The company now charges one rupee (Rs) for unlimited SMS in a day and Rs 11 for unlimited SMS a month.
Rifat Islam, a student of American International University Bangladesh, said, “Sometimes talking for a prolonged period of time over the mobile annoys me. At those times, I prefer SMS.”
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