Pakistan’s telecom industry has clarified that banks — not telecom companies — are primarily responsible for setting SMS alert charges imposed on customers, as the issue came under discussion at the Senate Standing Committee on Finance and Revenue.
Industry representatives explained that banks generally do not send SMS alerts directly through telecom networks. Instead, messages pass through licensed third-party aggregators that act as intermediaries, managing routing systems, delivery optimization, and commercial arrangements before messages reach mobile operators.
Because of this structure, telecom companies form only one link in a multi-layered messaging ecosystem and do not determine the final fees charged to banking customers.
Telecom operators provide bulk SMS services under enterprise agreements negotiated commercially, either directly with corporate clients or via aggregators. However, banks independently decide how much to charge account holders for SMS notifications, including monthly alert fees, which industry sources say often exceed the actual messaging cost within the delivery chain.
Operators stressed that attributing customer charges solely to telecom providers presents an incomplete picture of how banking alert services operate.
Representatives also highlighted differences in sector economics, noting that while Pakistan’s banking industry remains highly profitable, telecom companies continue to face rising operational pressures. These include low average revenue per user (ARPU), increasing electricity tariffs, heavy taxation, and continuous investment needs to maintain and expand digital connectivity infrastructure nationwide.
Despite these financial challenges, telecom firms said they continue to offer competitive bulk messaging rates to support essential services such as banking alerts and digital transactions.
Operators further stated that dedicated enterprise teams handle high-volume agreements with banks and aggregators under transparent pricing frameworks. They also expressed readiness to share detailed data — including traffic volumes and service rates — with lawmakers to demonstrate that telecom providers are not overcharging customers.
Telecom companies reaffirmed compliance with all regulatory obligations set by the Pakistan Telecommunication Authority, adding that they remain committed to supporting secure digital banking services and promoting financial inclusion through continued engagement with regulators and policymakers.
