Code of conduct SMS tariff scheme: Sender Keep All or Cost Based ?

Voice and SMS text message is still two products and favorite services offered by mobile operator.  Every mobile operator has its own tariff. For text messages SMS,we have many different and SMS tariff scheme for each mobile operator.
Usually we have one tariff for each message sent. For example in GSM we have Rp.100 for one text message. Another side, Bakrie Telecom as CDMA operator has different tariff scheme. If another mobile operator has tariff for any messages sent, Bakrie Telecom which its product called Esia using SMS tariff scheme Rp 1.1 for 1 character sent. So if you sent “hello” in Esia, you just pay Rp 6.
How about for mobile operator interconnections ? Every mobile operator has interconnection to other mobile operators. So they can send SMS or doing voice call each other, and must follow some agreement about tariff scheme.

For voice service, every mobile operators using revenue sharing based on their deal intercarrier agreement. So both sender and receiver operator will have any revenue for any voice call using their network. It is very different with SMS tariff scheme in Indonesia.
In Indonesia, mobile operator currently using SMS tariff scheme called Sender Keep All ( SKA ).  It means only mobile operator sender get revenue for each text message or SMS sent but the mobile operators receiver dont, even they have incharged in their mobile network.
The capacity issue and performance of signalling network will decrease when serve SMS text message request from other operator, so we can say the mobile operators receiver dont get any benefit or revenue.
Before when mobile operators receive text message request, they will hope the mobile subscriber receiver will reply the message and it will add their revenue. But currenlty we can see that SMS traffic will be a big problem to mobile operators receiver. For example Free SMS will be a good market strategy from one operator to get their new mobile subscriber. Although free SMS doesn’t give any charging to sender, but it can gives good influence for market share, and will growth amount of mobile subscriber.
Telecommunication regulator should make any clear rules to keep good competition in telecommunication industry. It is about code of conduct SMS tariff scheme, whether Send Keep All or cost based. For big telecommunication companies which invest big fund for their network, they will complain about big SMS traffics which comes to their network whereas they don’t get any benefit and revenue. They want SMS tariff scheme like cost based, so they will follow rules agreed intra operator for their interconnection. But for small telecommunication companies, they will choose SMS tariff scheme Sender Keep All for their marketing strategy.
Here we think about market share in telecommunication industry and how to make good competition among the mobile operators. According to my opinion, the rules should be choosen between two operators related. But, a telecommunication regulator should become a good judge to make any decision about the methods. Dont forget in every mobile operators there are prepaid number and postpaid number which have different billing SMS rates and method.The regulation should include prepaid tariff and postpaid tariff. Which is better ? it needs to be discussed further.

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2 comments to Code of conduct SMS tariff interconnection: Sender Keep All or Cost Based ?

  • Dear Admin,

    Bakrie Telecom which its product called Esia using SMS tariff scheme Rp 1.1 for 1 character sent. So if you sent “hello” in Esia, you just pay Rp 4.

    Could you explain to me for that quotes.
    I think if SMS tariff Rp 1.1 per character. So, if you sent “hello” (5 characters), you must pay Rp 6.

    Rp 6 = Absolute from Rp 1.1 * 5

    CMIIW. Thanks.

    Hamdi

    Current score: 0
  • atics

    thanks for the correction, i mean we just pay Rp. 4 for text “helo”.
    you are correct if i wrote “hello” which has 5 characters we should pay Rp 6.

    Just for adding we round down for result below 5, and round up for result above 5.

    for example if we has multiplication 1.1 times amount of characters = below 5 after commas you should round down the tariff.

    thanks

    Current score: 0

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