Feeds

Indonesia cleans up SMS

Telcos spammed one other to harm service

  • alert
  • submit to reddit

Maximizing your infrastructure through virtualization

Indonesia has changed its telecommunications laws to ensure that the nation's mobile carriers pay for SMS messages sent to rivals.

Indonesia's current regime is a “sender keeps all” arrangement whereby a mobile subscriber's carrier charges for a TXT, but the recipient's carrier (if different) doesn't get a single rupee. The new regime, which comes into force on June 1st, will mean sending carriers must pay 23 rupiah – about a fifth of a US cent – to the recipient carrier. 140RP is a common price to send a TXT in Indonesia, but some telcos charged no fees for SMS as a lure for customers and a way of harming rivals.

The fifth of a cent may not sound like a lot of money, but it's worth noting that Indonesia has a population of nearly 250 million and one mobile carrier – Telkomsel - has over 100 million subscribers. As is the case in many developing nations, mobile phones are more prevalent than wired phones, thanks to easier installation of wireless infrastructure. Indeed, the CIA World Fact Book reports 220 million cellular connections compared to 39 million wired phones.

Indonesia's spiffing No Spam logo

Indonesia's rather spiffing No Spam logo

That makes for a lot of TXTs buzzing around in Indonesian airspace.

The 23RP interchange price is also important in the context of bruising competition in the Indonesian mobile telecoms market that has seen carriers offer marketers – often rather spammy markters at that – the chance to broadcast SMS to rivals' subscribers. Those schemes saw the originating telco scoop up marketers' cash, while also imposing costs on rivals and degrading the customer experience.

Some of those unsolicited SMSes led to premium SMS scams, whereby users are tricked into receiving several messages that debit many times the price of a conventional TXT to their accounts. Such messages and the schemes that caused them to be sent were banned in Indonesia in late 2011, resulting in a profit hit for some legitimate telcos who reported their non-carriage revenue fell to as little as 10 per cent of previous levels.

The new 23RP charge will give some a chance to recoup some of that revenue. It will also make a big difference for average Indonesians, who will likely receive less Spam.

Indonesia's government hopes they'll also notice an improved overall service, as the new interchange fee is expected to help carriers fund network builds. A press release outlining the new arrangements also expresses a hope that the new arrangements won't mean free TXTs disappear from offers made to Indonesians, but that the cost of such offers will now be properly shared. ®

The Essential Guide to IT Transformation

More from The Register

next story
Yorkshire cops fail to grasp principle behind BT Fon Wi-Fi network
'Prevent people that are passing by to hook up to your network', pleads plod
Apple orders huge MOUNTAIN of 80 MILLION 'Air' iPhone 6s
Bigger, harder trouser bulges foretold for fanbois
Major problems beset UK ISP filth filters: But it's OK, nobody uses them
It's almost as though pr0n was actually rather popular
Google Nest, ARM, Samsung pull out Thread to strangle ZigBee
But there's a flaw in Google's IP-based IoT system
US freemium mobile network eyes up Europe
FreedomPop touts 'free' calls, texts and data
'Two-speed internet' storm turns FCC.gov into zero-speed website
Deadline for comments on net neutrality shake-up extended to Friday
Oh girl, you jus' didn't: Level 3 slaps Verizon in Netflix throttle blowup
Just hook us up to more 10Gbps ports, backbone biz yells in tit-for-tat spat
Want to beat Verizon's slow Netflix? Get a VPN
Exec finds stream speed climbs when smuggled out
GoTenna: How does this 'magic' work?
An ideal product if you believe the Earth is flat
prev story

Whitepapers

Seven Steps to Software Security
Seven practical steps you can begin to take today to secure your applications and prevent the damages a successful cyber-attack can cause.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
Build a business case: developing custom apps
Learn how to maximize the value of custom applications by accelerating and simplifying their development.
Consolidation: the foundation for IT and business transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.