Telcos push OTT platforms to self-verify users, not rely on SIM checks

Leading telecommunications operators (telcos) have asked over-the-top (OTT) communication platforms — which have opposed the implementation of the SIM-binding directive — to conduct their own customer application form (CAF) verification to onboard users, instead of relying on the mandatory verification carried out by telecom companies (telcos) before activating SIM cards for mobile services. 

CAF is a critical regulatory document for compliance, and telecom service providers are audited to ensure its accuracy and integrity. Failure to do so can lead to penalties. 

The Broadband India Forum (BIF), which includes members such as Meta and Google, has raised concerns over the Department of Telecommunications’ (DoT’s) latest directive on SIM binding, which mandates that application (app)-based communication services remain linked to a specific SIM card installed in the user’s device. BIF has argued that the move could cause inconvenience and service disruption to ordinary users, and has requested that it is “imperative that DoT pauses the current implementation timelines, initiate stakeholder consultations, constitute a technical working group, and then adopt a risk-based and proportionate framework consistent with constitutional standards of necessity and least intrusive means”. 

The government introduced the directive to curb cyberfraud originating from abroad. Currently, app-based services rely on a one-time password authentication linked to the SIM number. A user can move overseas and continue using the service even after disconnecting or destroying the original SIM, making it difficult for agencies to track individuals involved in cybercrime. A senior executive at a telco said: “If they don’t want to follow the SIM-binding directive, they can undertake their own verification while onboarding customers and follow similar audit procedures as telcos. We spend a lot on hiring people to complete this process. And while they question whether DoT has jurisdiction over these apps, the reality is they are riding on our SIM verification to onboard their new customers.” 

BIF has also argued that the directive represents jurisdictional overreach, saying that the Telecommunications Act does not permit regulation of OTT communication platforms, nor does it provide legislative backing to impose telecom-style operational mandates on them. It said these measures are being pushed through under the Telecom Cyber Security Amendment Rules without public consultation. 

Telcos currently undertake physical verification of customers and authenticate them before activating a SIM number — a process that requires hiring personnel across the country. They must also furnish CAF records if required by investigating agencies.