War against the big premium SMS rip-off | Latest News India - Hindustan Times
close_game
close_game

War against the big premium SMS rip-off

Hindustan Times | ByMayank Tewari, New Delhi
Jul 15, 2007 03:16 AM IST

Randhir Verma, president of the Chandigarh Telecom Subscribers Association, is all set to take on telecom operators over what he calls the ‘premium SMS fraud,’ reports Mayank Tewari.

Randhir Verma, president of the Chandigarh Telecom Subscribers Association, is all set to take on telecom operators over what he calls the ‘premium SMS fraud.’

HT Image
HT Image

A premium SMS costs anywhere between Rs 3 to Rs 6 – unlike Re 1 for a local one, and Rs 2 for a national — and the cost is shared by the cellular operator and the media channel.

Hindustan Times - your fastest source for breaking news! Read now.

“Kaun Banega Crorepati”, for instance, generated 58 million SMSes over three months. Assuming a charge of Rs 3 per SMS, a total of Rs 174 million was shared by the TV channel and the cellular operator. So who is losing out? The consumer.

“This is open cheating,” says BS Sharma, president, All India Consumer Congress, another consumer forum. “If the subscriber is at the root of this money generation, then why don’t they get a share?”

Two weeks ago, Sarbajit Roy noticed his 7-year-old son trying to send an SMS to win a free trip to Singapore.

“I was shocked to see the “Pyjama Pakdo” contest on Hungama TV. Every time a child sees a pyjama on screen he is expected to send an SMS. The first child to send 100 SMSes could win a trip to Singapore,” says Roy, a telecom consultant who writes the popular blog Cyber Crime India.

“My son was very upset when he learnt that a boy from Hyderabad had won a trip.” The Telecom Regulatory Authority of India (TRAI), which registers consumer forums like the Chandigarh Telecom Subscribers Association, does not control the pricing of value-added services.

“We don’t interfere with the price mechanism of premium SMS-based services — this does not fall under the purview of the TRAI,” says TRAI chairman Nipendra Misra.

There is one more reason why telecom operators are getting greedy. The Average Revenue Per User (ARPU), as on March 31, 2007, is going down. Market leader Bharti’s ARPU, for instance, has come down to Rs 406 (quarter ending March this year), compared to Rs 427 in the previous quarter. Idea Cellular too has witnessed a drop: to Rs 317 from Rs 322.

Result? “Everyone is focused on value- added services (VAS),” says Kartikeya, president, content, Cellebrum, a firm that provides telecom operators with VAS packages. VAS, estimated to be worth Rs 4,950 crore in March 2007, is set to grow by over 65% and generate business worth Rs 8,200 crore by the end of this financial year, according to estimates made by the Assocham.

If consumers have a problem, they should take it up with a consumer court, says Misra since TRAI is not a content regulator.

Unveiling Elections 2024: The Big Picture', a fresh segment in HT's talk show 'The Interview with Kumkum Chadha', where leaders across the political spectrum discuss the upcoming general elections. Watch now!

Get Current Updates on India News, Election 2024, Arvind Kejriwal News Live, Bihar Board 10th Result 2024 Live along with Latest News and Top Headlines from India and around the world.
SHARE THIS ARTICLE ON
Share this article
SHARE
Story Saved
Live Score
OPEN APP
Saved Articles
Following
My Reads
Sign out
New Delhi 0C
Thursday, March 28, 2024
Start 14 Days Free Trial Subscribe Now
Follow Us On