TRAI Sets Guidelines for Critical IoT Use and SIM Transfer Regulations

TRAI Sets Guidelines for Critical IoT Use and SIM Transfer Regulations

The Telecom Regulatory Authority of India (TRAI) has issued fresh recommendations addressing critical services in the Machine-to-Machine (M2M) sector and the transfer of ownership of M2M SIMs. These recommendations follow a reference from the Department of Telecommunications (DoT) dated January 1, 2024, seeking a review of TRAI’s earlier guidelines from September 2017. 

Background and Consultation 

TRAI initiated the consultation process in June 2024 by releasing a discussion paper. The process drew 16 stakeholder responses and one counter-comment, followed by a virtual open house held in October 2024. 

With M2M communication becoming increasingly vital across sectors like automotive, utilities, healthcare, public safety, surveillance, smart cities, finance, and agriculture, TRAI proposed a structured method to identify “critical IoT services”. A service would qualify as critical if it requires ultra-reliable, low-latency, high-availability connectivity, and any disruption could significantly impact national security, public health, safety, or the economy. 

TRAI recommends that the classification of such services be managed by the relevant ministry or regulatory body, in consultation with DoT. To support this, DoT has been advised to set up an institutional mechanism. 

Security and Certification of Critical IoT Devices 

To address security and privacy concerns—particularly for IoT devices used in critical sectors—TRAI has advised that M2M modules embedded in such devices be brought under the Mandatory Testing and Certification of Telecommunication Equipment (MTCTE) framework. This certification is recommended to be implemented in a phased manner, especially for sectors identified as critical by the National Critical Information Infrastructure Protection Centre (NCIIPC). 

Framework for M2M SIM Ownership 

On the matter of SIM ownership, TRAI has proposed a regulatory framework to allow the transfer of M2M Service Provider (M2MSP) registrations in the event of mergers, demergers, or acquisitions. Additionally, it suggests enabling the transfer of M2M SIM ownership between authorized entities. These measures are designed to ensure continuity, flexibility, and regulatory clarity within India’s rapidly evolving IoT and M2M ecosystem. These recommendations aim to strengthen the ecosystem’s resilience, enhance security protocols, and streamline operations across critical sectors in India. 

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