The Telecom Regulatory Authority of India (TRAI) on Tuesday released its recommendations on a regulatory framework for the sale of foreign telecom service providers’ SIM and eSIM cards used in Machine-to-Machine (M2M) and Internet of Things (IoT) devices meant exclusively for export.
The recommendations were issued following a request from the Department of Telecommunications (DoT) under the Ministry of Communications, which had sought TRAI’s views on the terms and conditions for issuing and renewing no-objection certificates for the import and sale of foreign SIM and eSIM cards for export-oriented IoT and M2M devices.
TRAI said Indian manufacturers of connected devices such as smart meters, industrial sensors, and connected vehicles often need to embed foreign telecom service providers’ SIM or eSIM cards to ensure seamless functionality in overseas markets. At present, India does not have a dedicated regulatory framework governing such arrangements, creating operational and compliance challenges for exporters.
To address this gap, TRAI has recommended a light-touch regulatory approach under the Telecommunications Act, 2023. It has proposed a new service authorisation titled “International M2M SIM Service Authorisation” to regulate the sale of foreign SIM and eSIM cards for export-only M2M and IoT devices.
Under the proposed framework, the authorisation would be granted through an online process with digitally signed, auto-generated approvals. Any company registered under the Indian Companies Act would be eligible to apply. TRAI has recommended that there should be no entry fee, minimum equity, net-worth requirement, bank guarantee, or authorisation fee. The only charge would be a processing fee of ₹5,000, with the authorisation remaining valid for a period of 10 years.
For testing and integration purposes, TRAI has suggested that foreign SIM and eSIM cards be allowed to be activated in India for a maximum period of six months.
The regulator has also recommended that the DoT coordinate with other central ministries, including the Ministries of Finance and Commerce, to establish a clear regulatory mechanism for both the import of foreign SIMs for export-oriented devices and the export of Indian telecom service providers’ SIMs for devices meant for import into the country.
