Telecom Operators Clarify SMS Charges Set by Banks

Telecommunications operators have formally clarified that SMS alert charges imposed on customers for banking transactions are determined by financial institutions, rather than by network service providers, in response to concerns raised by the Senate Standing Committee on Finance and Revenue.

It has been explained that banks do not establish direct connectivity with telecom networks for the purpose of delivering SMS alerts. Instead, such communications are routed through licensed third-party aggregators responsible for message processing, routing, delivery, and associated commercial arrangements prior to reaching telecom operators. Network providers, in turn, facilitate bulk messaging services under enterprise-level agreements but do not exercise control over end-user pricing structures.

Industry sources have indicated that the monthly charges applied for SMS alert services frequently exceed the underlying cost of message delivery. This discrepancy is attributed to pricing policies adopted by banks, rather than costs imposed by telecom operators. Accordingly, operators have emphasized that attributing the entirety of such charges to telecom networks constitutes a mischaracterization of the operational framework governing the messaging ecosystem.

Major operators, including Ufone, Zong, and Jazz, have expressed their willingness to provide disaggregated data—comprising transaction volumes and applicable service rates—to the Senate committee in order to demonstrate transparency and confirm the absence of overbilling practices. The operators further noted that telecom services remain subject to regulatory oversight by the Pakistan Telecommunication Authority, with full compliance being maintained.

This clarification follows the Senate committee’s request for a comprehensive cost breakdown after observing significant increases in SMS alert charges borne by banking customers. Industry stakeholders have reiterated their commitment to ensuring secure digital banking communications and advancing financial inclusion, while continuing constructive engagement with regulatory authorities.