TRAI issues recommendations on use of foreign SIMs in export-focused IoT devices

New Delhi [India], December 30 : The Telecom Regulatory Authority of India (TRAI) on Tuesday released its recommendations on a new regulatory framework governing the sale and use of foreign telecom service providers' SIM and eSIM cards in machine-to-machine (M2M) and Internet of Things (IoT) devices meant exclusively for export.

The recommendations follow a request from the Department of Telecommunications (DoT), Ministry of Communications, which had sought TRAI's views on the terms and conditions for issuing and renewing no-objection certificates (NOCs) for the import and sale of foreign SIM/eSIM cards used in export-bound M2M and IoT devices.

To address the regulatory gap in this fast-growing sector, TRAI has proposed a light-touch authorisation regime under the Telecommunications Act, 2023.

The proposed framework introduces a new category called the "International M2M SIM Service Authorisation", which will allow Indian entities to legally procure and use foreign SIM/eSIM cards in devices manufactured for overseas markets.

Under the recommendations, the authorisation process will be fully online, with digitally signed, auto-generated approvals. Any company registered under the Indian Companies Act will be eligible to apply. TRAI has proposed zero entry fee, zero authorisation fee, and no minimum equity, net worth or bank guarantee requirements.

Applicants will only need to pay a processing fee of Rs 5,000, and the authorisation will remain valid for 10 years.

Recognising the need for testing and quality assurance, TRAI has also recommended that foreign SIM/eSIM cards be allowed to remain active in India for testing purposes for up to six months.

The regulator noted that Indian manufacturers of smart meters, connected vehicles, industrial sensors and other IoT-enabled equipment often need to embed foreign SIMs to ensure seamless connectivity in destination countries.

A clear regulatory framework is essential to support exports while addressing security and compliance concerns, TRAI said.

It further advised the DoT to coordinate with other central ministries, including the Ministries of Finance and Commerce, to create a harmonised framework covering both the import of foreign SIM/eSIM cards for export-oriented devices and the export of Indian SIM/eSIM cards for devices meant for import markets.

According to the regulator, the proposed framework will support the government's Make in India initiative by boosting domestic manufacturing for global markets and improving the international competitiveness of Indian IoT and M2M products.

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