Pakistan’s telecom operators deny role in bank transaction SMS charges

Telecom operators, including Ufone, Zong and Jazz, have clarified that customer-facing SMS alert charges for banking transactions are determined by banks, as scrutiny intensifies following discussions at the Senate Standing Committee on Finance and Revenue.

In an official statement on Friday, industry stakeholders say banks typically do not connect directly with telecom networks for SMS alert services.

Instead, messages are routed through licensed third-party aggregators that act as intermediaries, managing routing, delivery optimization, and commercial arrangements before traffic reaches telecom operators. As a result, operators constitute only one component of a broader value chain and do not control the final charges imposed on customers.

Telecom companies provide bulk messaging services under commercially negotiated enterprise agreements, either directly or through aggregators. Banks, however, independently determine the pricing structures for their customers, including monthly SMS alert fees for transaction notifications, which industry sources note are often higher than the underlying costs within the messaging chain.

Operators emphasised that attributing end-customer charges solely to telecom providers does not reflect how the ecosystem functions.

Operators added that they maintain dedicated enterprise teams to manage bulk service agreements with corporate clients, including banks and aggregators, based on transparent, high-volume pricing models.

They also expressed willingness to share disaggregated data with the Senate Committee—such as transaction volumes and service rates—to demonstrate that there is no overcharging on the telecom side. Telecom services in Pakistan remain subject to ongoing regulatory oversight, and operators reaffirmed compliance with all requirements set by the Pakistan Telecommunication Authority (PTA).

Industry stakeholders reiterated their commitment to supporting secure digital banking services and advancing financial inclusion, while continuing to engage constructively with regulators and policymakers.

Days ago, the Senate Standing Committee on Finance and Revenue expressed serious concern over steep increases in SMS charges imposed on banking customers and directed banks and telecom operators to submit a detailed cost breakdown.