The Government of India proposed new telecom cybersecurity rules in 2025. These draft rules aim to verify the lawful ownership of mobile numbers. The move has raised concerns among digital firms about increased costs and regulatory overreach. The draft Telecommunications (Telecom Cyber Security) Amendment Rules, 2025, would allow telecom operators to charge private entities ₹3 per mobile number validation. This fee could affect many digital platforms that rely on mobile numbers for user identification.
Background of Draft Telecom Cybersecurity Rules
The draft rules introduce a new category called telecommunication identifier user entity (TIUE). This includes any person or entity using telecom identifiers like mobile numbers for service delivery, excluding telecom licensees. This broad definition covers most digital platforms such as fintech, e-commerce, social media, and mobility services. The rules aim to enhance security by confirming the legal subscriber of a phone number.
Concerns Raised by Digital Industry
The Internet and Mobile Association of India (IAMAI), representing firms like Google, Apple, and Amazon, has expressed strong concerns. They argue the rules extend telecom regulations to entities that neither provide telecom services nor operate infrastructure. IAMAI views this as an overreach of the Department of Telecommunications’ (DoT) authority under the 2023 Telecommunications Act. The requirement to pay ₹3 per validation request may seem minor but can add up to millions in costs annually for large digital firms.
Potential Economic Impact
The cumulative validation fees could force companies to rethink their business models. Increased costs may be passed on to consumers or reduce profit margins, especially affecting startups and Micro, Small, and Medium Enterprises (MSMEs). These smaller entities may find the new expenses disproportionately burdensome. The draft rules currently suggest the validation service may be optional but leave open the possibility of mandatory validation for certain sectors in future.
Legal and Regulatory Challenges
Legal experts question the DoT’s jurisdiction to impose such rules on non-telecom operators. The draft’s wide scope blurs the line between telecom regulation and digital platform governance. CUTS International, a regulatory think tank, recommends focusing on strengthening existing cybersecurity initiatives instead of introducing inconsistent rules. They warn that the overall impact of the draft amendments may be negative for businesses, consumers, and digital markets.
Future Outlook and Industry Response
Industry stakeholders continue to engage with the DoT to clarify and possibly revise the draft rules. The debate marks the challenge of balancing cybersecurity with innovation and cost-efficiency in digital services. The government’s next steps will be crucial in shaping India’s digital regulatory landscape and its impact on the growing tech ecosystem.
Questions for UPSC:
- Critically discuss the implications of expanding telecom regulations to digital platforms in India. How can regulatory overreach affect innovation and business growth?
- Examine the role of Micro, Small, and Medium Enterprises (MSMEs) in India’s digital economy. Analyse how increased compliance costs impact their sustainability and competitiveness.
- What are the challenges in implementing cybersecurity measures in the telecom sector? Point out the balance needed between security and user privacy.
- Estimate the economic effects of mandatory mobile number validation on fintech and e-commerce sectors. How can policy frameworks ensure equitable growth while maintaining security?
