The Indian telecom regulator, TRAI has issued new guidelines for mobile SIM cards that require verification of subscribers through an OTP-based process before activation of new connections. These guidelines are set to come into effect starting 1st December 2023 and are likely to cause some changes in how new SIM cards are issued by telecom operators.
One of the major requirements is to link SIM cards with a subscriber's Aadhaar number. This is aimed at improving traceability of mobile users and curb instances of fraud through use of unverified SIM cards. However, experts have pointed out potential privacy concerns with mandatory linking of SIM and Aadhaar data. There are also worries that technical glitches in the OTP authentication process could lead to activation delays for new subscribers.
The new rules mandate a maximum duration of 48 hours for telecom companies to activate a new connection after due verification process using Aadhaar based authentication. While this could reduce delays compared to the earlier process, the verification system will need to be robust to prevent drop offs in customer conversions due to OTP failures.
An area that is likely to get impacted is the use of multiple SIM cards by customers. The enhanced KYC requirements could make having more than one connection difficult under the same name and Aadhaar number. This aspect might need further policy clarification from TRAI to balance customer convenience and regulatory objectives. There are also cost implications for telecom operators as they will have to upgrade systems and processes to remain compliant with the new guidelines.
In summary, while the upgraded SIM verification rules are intended to reinforce national security and subscriber traceability, their impact could be both positive and negative depending on execution by telecom companies. As the 1st December 2023 deadline approaches, both operators and customers will be watching closely to ensure a smooth transition and quick resolution of any glitches that crop up.
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