In recent news, the Telecom Regulatory Authority of India (TRAI) temporarily halted the scrubbing of short message service (SMS) by telecom service providers (TSP) for a seven-day period. The decision was taken in response to an interruption in the functionality of various SMS-based services provided by several banks and e-commerce platforms. This disruption occurred because TSPs had started implementing the second phase of SMS regulation.
New SMS Regulations and Their Purpose
The Telecom Commercial Communication Customer Preference Regulation, 2018 was issued to effectively combat unwanted spam. According to these rules, TSPs are now obligated to verify the content of every SMS against registered text prior to delivery to consumers.
The process, known as scrubbing, was recently set in motion after being delayed several times. Under the new TRAI regulations, specific entities, labeled as principal entities, will be permitted to send SMSes to customers. The guidelines necessitate the registration of senders, telemarketers, headers, content, templates, consent templates and user preferences.
Restrictions and Framework
These rules forbid unregistered senders from initiating commercial messages while also preventing registered companies from sending fraudulent messages to their customers. Furthermore, a framework has been released by TRAI under which TSPs can use distributed ledger technology or blockchain to verify sender information and content for each commercial SMS before it is delivered to the consumer’s device.
Advantages of Implementation
Blockchain ensures both non-repudiation and confidentiality. Access to subscriber details is limited to authorized personnel and only when necessary to provide a service. The previous technology and platform, according to TRAI, enabled dishonest telemarketers to circumvent the customer’s expressed preference by falsely claiming consent.
Recent Issues and Controversies
Despite the implementation of the scrubbing norms by TSPs, some companies failed to adopt them, resulting in text message drops and transaction failures. TSPs followed TRAI regulations and activated the content scrubbing process to address the unsolicited commercial communication issue. Principal entities were requested by TSPs to register their content template with them.
Blockchain Technology
Blockchain is an unalterable shared ledger that aids in documenting transactions and monitoring assets within a business network. The technology was initially used primarily for tracking cryptocurrency transactions but has since been utilized for various other purposes. Governments of Andhra Pradesh and Telangana have digitized land records using blockchain technology due to its traceability features. Election Commission (EC) officials are also considering the potential use of this technology to facilitate remote voting.
About Telecom Regulatory Authority of India
Established by an Act of Parliament (Telecom Regulatory Authority of India Act, 1997), TRAI regulates telecom services, including tariff fixation and revision. Its aim is to cultivate a transparent and equitable policy environment that promotes fair competition.
The TRAI Act was later amended to establish the Telecommunications Dispute Settlement and Appellate Tribunal (TDSAT). TDSAT was established to resolve disputes between licensors and licensees, among service providers, as well as between service providers and consumer groups. It is also tasked with hearing and resolving appeals against any direction, decision, or order of TRAI.
