TRAI Proposes Light-Touch Authorisation for Sale of Foreign SIMs in Export IoT Devices

The Telecom Regulatory Authority of India (TRAI) has proposed regulating the sale of foreign telecom service providers' SIM cards for export-oriented M2M and IoT devices. This regulation would be under a light-touch service authorisation within the Telecom Act. The new authorisation is suggested to be named International M2M SIM Service Authorisation.

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TRAI recommends that the authorisation should have no entry fee, minimum equity, or net-worth requirements. Additionally, there should be no bank guarantee or fee for the authorisation, with only a Rs 5,000 application processing charge. The authorisation is suggested to have a validity period of ten years.

International M2M SIM Service Authorisation

According to TRAI, any company registered under the Indian Companies Act can apply for this international M2M SIM service authorisation. The sale of foreign telecom service providers' SIM/eSIM cards for use in M2M/IoT devices intended for export should be regulated through this light-touch service authorisation under the Telecommunications Act, 2023.

The process for obtaining the International M2M SIM Service Authorisation should be conducted online, with a digitally signed auto-generated authorisation being granted. For testing purposes, foreign telecom service providers' SIM/eSIM cards can be activated in India for up to six months.

Regulatory Framework and Market Potential

TRAI has advised that the Telecom Department collaborate with relevant ministries such as Finance and Commerce to establish a clear regulatory framework. This framework would facilitate the import of foreign telecom service providers' SIM/eSIM cards for export-oriented M2M/IoT devices and the export of Indian telecom service providers' SIM/eSIM cards for import-oriented devices.

TRAI believes these recommendations will unlock market potential for Indian exporters and importers in the M2M/IoT sector. The regulatory framework would support the government's Make in India initiative by encouraging local manufacturing for global markets.

Global Competitiveness and Local Manufacturing

The regulatory framework proposed by TRAI aims to make Indian products with M2M capabilities more appealing globally. It would enable Indian enterprises to compete with established global players in IoT/M2M markets. Indian manufacturers exporting their products globally seek foreign SIMs to integrate into their products for IoT/M2M services used outside India.

M2M, or Machine-to-Machine communication, involves technologies that allow wireless and wired systems to communicate with similar devices. IoT, or Internet of Things, is a network of embedded devices capable of M2M communication without human intervention.

With inputs from PTI