TRAI on Foreign SIM: Telecom Regulatory Authority of India (TRAI) on Tuesday issued an important recommendation which is especially related to those IoT and Machine-to-Machine (M2M) devices which are manufactured only for export. In this, a new regulatory framework has been suggested regarding the use of SIM and eSIM cards of foreign telecom companies.
TRAI’s decision came on the request of DoT
This recommendation has come after the request of the Department of Telecommunications (DoT) under the Ministry of Communications. DoT had asked TRAI to clarify what should be the conditions for import, sale and issuance or renewal of NOC (No Objection Certificate) of foreign SIM/eSIM cards used in M2M and IoT devices made for export.
Light regulation for fast growing sector
TRAI acknowledged that the IoT and M2M sector is growing very fast and till now there was a lack of a clear regulatory framework. Keeping this in mind, a “light-touch” authorization system has been proposed under the Telecommunications Act 2023 so that companies are not burdened unnecessarily.
New category of ‘International M2M SIM Service Authorization’
TRAI has recommended creating a new category named International M2M SIM Service Authorization. Under this, Indian companies will be able to legally obtain foreign SIM and eSIM cards and use them in those devices which are being made for the foreign market.
Completely online and easy process
According to the new system, the authorization process will be completely digital. Application can be made online and approval will be given with auto-generated and digital signature.
Any company registered under the Company Act of India can apply for this. TRAI has neither imposed any entry fee, nor any authorization charge, nor any minimum equity, net worth or bank guarantee requirement. Only a processing fee of Rs 5,000 will have to be paid and the approval will be valid for 10 years.
Limited use exemption in India for testing
Considering the need for quality check and testing, TRAI has also suggested that foreign SIM/eSIM cards should be allowed to remain active for testing in India for a maximum of 6 months. This will facilitate manufacturers in testing their products.
Needs of Indian manufacturers received support
TRAI said that Indian companies making smart meters, connected vehicles, industrial sensors and other IoT devices often have to embed foreign SIMs, so that uninterrupted network connectivity can be provided in the country where the device is being sent.
Balance between security and export
The regulator says that a clean and strong regulatory framework will not only promote exports but will also remove concerns related to security and compliance. TRAI has advised DoT to prepare a coordinated policy in collaboration with other central ministries including the Finance and Commerce Ministries.
Make in India will get a boost
According to TRAI, this proposed framework will strengthen the Make in India initiative of the government. This will increase the global competitiveness of IoT and M2M products made in India and the country will be able to become a strong global hub of domestic manufacturing.
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