TRAI on Foreign SIM: TRAI on Tuesday issued an important recommendation specifically related to IoT and machine-to-machine (M2M) devices that are manufactured solely for export.

TRAI on Foreign SIM: The Telecom Regulatory Authority of India (TRAI) on Tuesday issued a key recommendation specifically related to IoT and machine-to-machine (M2M) devices designed solely for export. It suggested a new regulatory framework for the use of SIM and eSIM cards from foreign telecom companies.

TRAI's decision came at the request of DoT

This recommendation follows a request from the Department of Telecommunications (DoT), under the Ministry of Communications, to clarify the conditions for the import, sale, and issuance or renewal of NOCs (No Objection Certificates) for foreign SIM/eSIM cards used in M2M and IoT devices intended for export.

Lighter regulation for a rapidly growing sector

TRAI recognized that the IoT and M2M sectors are growing rapidly and have lacked a clear regulatory framework. Keeping this in mind, a “light-touch” authorization system has been proposed under the Telecommunications Act 2023 to avoid undue burden on companies.

New category of 'International M2M SIM Service Authorisation.'

TRAI has recommended the creation of a new category called International M2M SIM Service Authorisation, which will allow Indian companies to legally acquire foreign SIM and eSIM cards and use them in devices being developed for overseas markets.

Completely online and an easy process

Under the new system, the authorization process will be completely digital. Applications can be submitted online, and approvals will be auto-generated with a digital signature.

Any company registered under the Companies Act of India can apply. TRAI has imposed no entry fee, no authorization charge, no minimum equity, net worth, or bank guarantee requirements. A processing fee of only ₹5,000 is required, and the approval is valid for 10 years.

Limited use in India for testing purposes

Given the need for quality checks and testing, TRAI has also recommended allowing foreign SIM/eSIM cards to remain active in India for a maximum period of six months for testing. This will facilitate product testing by manufacturers.

Support for the needs of Indian manufacturers

TRAI said that Indian companies manufacturing smart meters, connected vehicles, industrial sensors, and other IoT devices often have to embed foreign SIMs to ensure uninterrupted network connectivity in the country to which the device is being shipped.

Balancing security and exports

The regulator states that a clear and robust regulatory framework will not only boost exports but also address concerns related to safety and compliance. TRAI has advised DoT to develop a coordinated policy in collaboration with other central ministries, including Finance and Commerce.

Make in India will get a boost.

According to TRAI, this proposed framework will strengthen the government's Make in India initiative. It will enhance the global competitiveness of IoT and M2M products manufactured in India and position the country as a strong global hub for domestic manufacturing.