TRAI Recommends Light-Touch Service Authorisation For Sale Of Foreign SIMs Used In For-Export IoT Devices

Telecom regulator Telecom Regulatory Authority of India has recommended that the sale of foreign telecom service providers' SIM cards meant for use in for-export Machine-To-Machine and Internet of Things devices should be regulated via a light-touch service authorisation under the Telecom Act.

The new service authorisation should be termed as 'International M2M SIM Service Authorisation', it said.

The entry fee, minimum equity, minimum net-worth, bank guarantee, and fee for the authorisation should be nil, TRAI said, mooting Rs 5,000 as application processing charge for the authorisation.

The regulator has suggested a 10-year validity period for the authorisation.

According to TRAI, any company registered under the Indian Companies Act should be eligible to obtain the international M2M SIM service authorisation.

"The sale of foreign telecom service providers' SIM/ eSIM cards for the use in M2M/IoT devices meant for export should be regulated through a light-touch service authorisation under the Telecommunications Act, 2023," it said.

The international M2M SIM Service Authorisation should be granted online with a digitally signed auto-generated authorisation, it said.

For testing purposes, the foreign telecom service providers' SIM/eSIM cards should be permitted to be activated in India for a maximum period of six months.

TRAI said that the Telecom Department should coordinate with the concerned ministries (Ministry of Finance, Ministry of Commerce and others) to lay down a clear regulatory framework for enabling the import of foreign telecom service providers' SIM/ eSIM cards for use in M2M/IoT devices meant for exports, and the export of Indian telecom service providers' SIM/ eSIM cards for use in M2M/IoT devices meant for import.

TRAI believes this will unlock the market potential for Indian exporters and importers operating in the M2M/IoT segment.

The recommendations would support the government's 'Make in India' initiative, encouraging local manufacturing for global markets, says the regulator.

"The regulatory framework for International M2M SIM Service Authorisation recommended by TRAI would make Indian products with M2M capability more attractive globally," TRAI said, and added that it would help Indian enterprises compete with established global players in IoT/M2M markets.

Indian manufacturers exporting their products to the global market seek foreign SIMs to be provided to them in India itself for integration into their products for IoT/M2M services for use outside India.

M2M, short for Machine-to-Machine communication, refers to technologies that allow both wireless and wired systems to communicate with other devices of the same ability.

IoT, or Internet of Things, is a connected network of embedded devices capable of having M2M communication without human intervention.