According to various surveys and reports, the open rate for text messages or SMS has exceeded the figure of 98%. Alongside, over 90% of the text messages are read within 3 seconds from their delivery. This benefit of a past and high open rate has made SMS a crucial component of Omni channel customer communication. Plenty of businesses today have started using text messages as a robust communication tool for delivering customer service as well as targeting marketing campaigns.

The text messages that a business or brand sends are divided into two broad categories – transactional SMS and promotional SMS.

Transactional SMSs are sent to customers by businesses when they need to provide relevant information that is required to use its product or services more efficiently. According to the definition of transactional SMS by the Telephone Regulatory Authority of India (TRAI), it is a text message not containing any promotional content.

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Meanwhile, a business sends promotional text messages when they want to promote their brand or product and inform their customers about the same. Here businesses can communicate offers, discounts, and promotions to their customers through SMS.

How are the two different?

TRAI Guidelines

TRAI’s guidelines include the prohibition of businesses and marketers from sending any promotional SMS to numbers on the DND list. However, businesses can send transactional SMS to customers despite being on the DND list.

This makes it essential for businesses to prevent sending promotional SMS to customers in the DND criteria.

Sender ID

Transactional and promotional messages are sent to the customers using different and independent SMS gateways.

Businesses have to select their Sender ID as per the type of SMS they will be sending. Here, transactional SMS have an alphabetic sender ID of 6 characters while promotional SMS have a numeric sender ID.


Businesses send promotional and transaction SMS for different purposes. Here, transactional SMS conveys important product or service information to its existing customers. While promotional SMS is a powerful tool of promote or advertise products. These are sent to convey discounts, offers and/ or promotions, they can be sent regardless of consent.

Delivery time

Transactional SMS is sent when the customer takes any specific action such as requesting OTP or placing an order. So, businesses can send transactional text messages all throughout the day to customers. However, business is cannot send promotional messages before 9 AM and after 9 PM.

Taxes and charges

Promotional SMS has service taxes imposed on it by TRAI. However, it does not impose any service tax on transactional SMS. Also, there is a prescribed termination charge of 5 paise on both types of SMSs. With the imposition of service and termination charges, businesses have to incur additional expenses to send out both transactional and promotional SMS.So, what are you waiting for? Make your business grow exponentially with the best Bulk SMS Service. Moreover, Bulk SMS Service in Hyderabad campaigns will help you reach your audience directly and communicate with them personally.