Telcos Say Banks Set SMS Alert Charges as Senate Scrutiny Intensifies

ISLAMABAD

Telecom operators have clarified that banks, not telecom companies, are primarily responsible for setting SMS alert charges, following a heated debate in the Senate Standing Committee on Finance and Revenue over rising costs for banking customers.

Industry representatives told the committee that banks typically do not connect directly with telecom networks for SMS alerts. Instead, messages are routed through licensed third-party aggregators, which act as intermediaries between banks and telecom operators, handling delivery, routing, and commercial arrangements.

As a result, telecom operators said they form only one part of the value chain and do not have full control over the final prices charged to customers. Banks, they added, determine the retail pricing for SMS alerts, including monthly charges that are often higher than the base cost of sending messages.

Operators stressed that holding telecom companies solely responsible for the charges does not reflect the complete picture, pointing to the layered structure of service delivery.

They also highlighted financial pressures facing the telecom sector, including low revenue per user, rising energy costs, heavy taxation, and continuous investment requirements to expand and maintain digital infrastructure. In contrast, they noted, the banking sector remains among the most profitable in the country.

Despite these challenges, telecom companies said they continue to offer competitive bulk messaging rates to support essential services such as banking alerts. They also offered to provide detailed data on transaction volumes and pricing models to the Senate committee to ensure transparency.

Officials reiterated that telecom services operate under strict regulatory oversight and comply fully with all applicable rules. Industry representatives added that they remain committed to supporting secure digital banking and financial inclusion through continued engagement with regulators and policymakers.