Banks, not telecoms, responsible for SMS alert charges, operators say

Telecom operators have clarified that customer SMS alert charges for banking transactions are set by banks, not by network providers, following concerns raised by the Senate Standing Committee on Finance and Revenue.

Banks do not connect directly with telecom networks for SMS alerts. Messages pass through licensed third-party aggregators, which manage routing, delivery, and commercial arrangements before reaching telecom operators. Operators provide bulk messaging under enterprise agreements but do not control end-user pricing.

Industry sources noted that monthly SMS alert fees often exceed the actual cost of delivery, reflecting banks’ pricing decisions rather than telecom charges. Operators stressed that attributing the full cost to networks misrepresents the structure of the messaging ecosystem.

Ufone, Zong, and Jazz expressed readiness to share disaggregated data—including transaction volumes and service rates—with the Senate committee to demonstrate transparency and absence of overcharging. Telecom services remain under Pakistan Telecommunication Authority (PTA) oversight, with operators confirming full compliance.

The clarification follows the Senate committee’s demand for a detailed cost breakdown after noting steep increases in SMS charges for banking customers. Industry stakeholders reiterated their commitment to secure digital banking services and financial inclusion while engaging with regulators.