Calculation model of SMS interconnection rates via SMS Hubbing in Indonesia and regulatory approach

Interconnection SMS in Indonesia currently uses a peering model in which every operator interconnected with one another. The model works well for a small number of operators offering simple text messaging service. However, the model is problematic for a large number of operators offering complex service and business arrangements. To overcome this problem, SMS Hubbing model becomes alternatives model. SMS Hubbing provides a single agreement and point to multi-point connection to enable full SMS interoperability regardless of network technologies or specific operator network configurations. This paper discusses Interconnection Tariff Calculation Model and regulation for SMS Hubbing.