DoT to crack down on telemarketers; new rules to curb spam calls & messages

Telecom companies have consistently raised concerns that they are penalised for spam that originates from third-party telemarketers over whom they have little control

In a significant move aimed at reducing the nuisance of spam calls and messages, the Department of Telecommunications (DoT) is set to regulate telemarketers. This initiative seeks to introduce accountability in the sector, which has long been blamed for the proliferation of unsolicited communications, many of which have been linked to financial fraud.

Regulatory framework in the works

The DoT has approached the Telecom Regulatory Authority of India (Trai) to develop recommendations on how telemarketers can be regulated through an authorisation mechanism. According to sources cited in The Economic Times report, this request follows growing calls from telecom operators for telemarketing entities to be included under the government’s licensing framework. By doing so, telemarketers could be held accountable for spam messages within the broader message delivery chain.

Telecom companies have consistently raised concerns that they are currently penalised for spam that originates from third-party telemarketers over whom they have little control. Further, telemarketers frequently switch between operators, making it difficult for telecoms to enforce any conditions or penalties.

Trai's role and industry support

As part of its efforts to address the spam issue, Trai is already conducting a consultation process and has gathered input from key stakeholders. Officials suggest that a supplementary paper will soon be released, providing recommendations on the matter. One official noted that telemarketers are likely to be included in an authorisation category to bring them under direct regulatory oversight.

At present, telecom operators are fined by Trai for spam originating on their networks, despite having little control over telemarketers. Data from operators indicates that over 280,000 businesses in India send commercial messages, which are routed through 16,000 telemarketing aggregators before being passed to 15 delivery telemarketers. This complex chain means operators are dependent on these 15 entities for the final delivery of messages and have little insight into where spam messages originate or who is responsible for them.

Holding telemarketers accountable

Telecom operators have proposed that telemarketers and businesses responsible for spam should face financial penalties, rather than placing the burden solely on carriers. During a recent meeting with Union Minister of Communications, Jyotiraditya Scindia, operators raised these concerns, which led to DoT agreeing to their suggestions. With Trai expected to issue its recommendations soon, the industry anticipates a shift towards shared accountability in managing spam.