SMS rates set for hike

KOCHI: Cellular subscribers in love with the Short Messaging Service (SMS) will be in for a rude jolt shortly as major cell operators in the State are readying for a three-fold increase in SMS rates in certain cases.

The move will double the bills of subscribers, considering the popularity of the SMS, while improving the bottomline of cellular majors who in a reversal of the earlier strategy of reducing call and SMS charges have decided to shore up sagging revenues.

SMS rates have gone up in Mumbai with international SMS costing three times the current charges, moving up from Rs 1.50 to Rs 5, according to reports. Charges for SMS sent to circles outside one’s own circle will go up from Rs 1.50 to Rs 2.

While most of the cellular operators have denied knowledge of the impending increase in SMS rates, an Escotel official has confirmed that many partners of the Mobile First alliance, which includes BPL Mobile, RPG Cellular and Spice Telecom, have increased charges in Mumbai last week.

‘‘We are not providing service in Mumbai. But many partners of Mobile First alliance have increased their SMS rates. Our rates as of now remains the same and we have not decided to revise them here,’’ he said.

The others who have revised SMS rates in Mumbai are Bharti’s AirTel and Hutch.

While the new rates have come into effect for pre-paid customers last week in Mumbai, that of post-paid subscribers will be increased from the next billing cycle, reports said.

According to cellular industry insiders, SMS rates will soon be revised in the rest of the country. ‘‘Once it is introduced in the metros, it will only be a matter of time before it is introduced in the rest of the country, including the State,’’ a mobile phone dealer said.

SMS rates which had been slashed in April-May had come down to just Re 1 for post-paid customers and Rs 1.50 for pre-paid subscribers. This had almost tripled SMS usage as instant messaging became a popular way of communication.

‘‘There has been a huge increase in SMS traffic since the rates were slashed and the revised rates would adversely affect usage patterns and revenue,’’ said an industry insider.

Currently, Bharat Sanchar Nigam Limited (BSNL) charges the least for SMS at 60 paisa. But they are yet to introduce international SMS.

‘‘We are not contemplating any revision. We are also planning to introduce international Short Messaging Service,’’ said a BSNL official.