Telecom operators have clarified their role in bank SMS alert charges following recent complaints raised by members of the Senate Standing Committee on Finance and Revenue this week.
They blamed banks for controlling all SMS alert charges. They said banks typically do not connect directly with telecom networks to send SMS alerts. Instead, messages are routed through licensed third-party aggregators that act as intermediaries, handling routing, delivery optimization, and commercial arrangements before traffic reaches telecom operators.
This way, telcos claimed they represent only one component of the messaging value chain and do not determine the final fees charged to banking customers.
They defined their role as providing bulk messaging services under commercially negotiated enterprise agreements, either directly or through aggregators. But banks, they argued, independently decide the pricing structure for customers, including monthly SMS alert charges, which are often significantly higher than the underlying messaging costs.
Operators emphasized that holding telecom providers solely responsible for end-user charges does not accurately reflect how the ecosystem functions.
They also pointed to contrasting financial realities between sectors that telecom operators in general face mounting operational pressures, including low average revenue per user (ARPU), rising energy costs, heavy taxation, and ongoing capital investment requirements to maintain and expand digital infrastructure nationwide.
Officials added that dedicated enterprise teams manage bulk agreements with corporate clients, including banks and aggregators, under transparent, high-volume pricing models. They also expressed willingness to share detailed data with the Senate committee to demonstrate that telecom operators are not overcharging.
The operators reaffirmed full compliance with requirements set by the Pakistan Telecommunication Authority.
