TRAI responds to DoT's back-reference on regulator's recommendations on 'Definition of International Traffic'

The Telecom Regulatory Authority of India (TRAI) has issued its response to the back-reference received from the Department of Telecommunications (DoT), on March 18, in respect of the telecom regulator's recommendations on the 'Definition of International Traffic'.

On December 10, 2024, TRAI issued recommendations on 'Definition of International Traffic'. TRAI recommended that ‘International Traffic’ means traffic originating in one country and terminating in another country, where one of the countries is India.

The telecom regulator said the term ‘International SMS Message’ should be defined in the relevant telecommunication service licenses and authorisations as ‘international traffic delivered using SMS’. Similarly, the term ‘Domestic Traffic’ has to be defined in the relevant telecommunication service licenses and authorisations as ‘traffic originating and terminating within India’ and the term ‘Domestic SMS’ should be defined in the relevant telecommunication service licenses and authorisations as ‘domestic traffic delivered using SMS’.

The need for these recommendations arose in 2021 when TRAI received representations from two entities. One entity requested TRAI to direct telecom service providers (TSPs) to transmit its SMS traffic via the domestic route, while the other sought clarification from TRAI to ensure that its transactional messages were routed domestically rather than internationally.

In response, TRAI approached the DoT to examine the requests and determine whether the messages in question were domestic or international. DoT replied that License Agreements do not explicitly define Domestic and International SMS. It noted that, according to TRAI’s Telecommunication Interconnection Usage Charges Regulations, termination charges on domestic SMS are regulated, whereas charges on international SMS are under forbearance. However, the regulations themselves do not provide definitions for domestic or international SMS, DoT added.

Subsequently, DoT, through a back-reference dated February 13, 2025 informed TRAI that the recommendations of TRAI on 'Definition of International Traffic' have been accepted in principle. DoT, however, sought clarification from TRAI in respect of International SMSs.