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Telecom companies are voicing concerns over a new directive from the Telecom Regulatory Authority of India (TRAI) that could disrupt the delivery of crucial service messages, including One-Time Passwords (OTPs) for online transactions, starting November 1.
With online transactions increasingly reliant on OTPs, telcos warn that customers may encounter difficulties with various services, from online payments to parcel deliveries. TRAI’s new guidelines mandate that telecom companies ensure messages sent from Principal Entities (PEs) to customers are traceable. The rules regarding message traceability will take effect from November 1.
These guidelines apply to multiple sectors, including banking, e-commerce, and financial institutions, meaning messages with mismatched sender details or lacking clear sender identity will be blocked.
Telecom service providers have expressed concerns about implementing the new guidelines, as telemarketers and PEs have not established the necessary technology to comply, according to a report from the Economic Times. The telcos have requested an extension of the deadline by at least two months.
Currently, OTPs are vital for securing online transactions, ensuring only authorized individuals can complete these actions. However, preparations are underway to introduce alternative safety measures to combat fraud.
Telecom operators have informed TRAI that while their systems are ready for the November 1 deadline, the necessary preparations on the part of telemarketers and PEs are lagging. Consequently, PEs and telemarketers require additional time to adequately scrub messaging traffic to minimize disruptions. The industry has requested TRAI to allow the mandate to operate in “logger mode” starting November 1, permitting messages to flow uninterrupted in case of discrepancies.
To address potential issues, telecom operators have committed to providing daily reports to telemarketers and PEs, expecting full compliance with the new rule by December 1.
This marks the second time the telecom sector has sought a one-month extension to comply with TRAI’s commercial message mandate. Previously, the regulator extended the deadline for whitelisting messages containing URLs, OTT links, and other related information by one month, pushing it to October 1. Following this extension, most PEs and telemarketers have aligned their systems, leading to smoother operations.
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