New Delhi: The Telecom Regulatory Authority of India (TRAI) has successfully operationalised a blockchain-based Distributed Ledger Technology (DLT) framework to ensure the traceability of all commercial SMS.

This initiative aims to create a safer and spam-free messaging environment, marking a critical milestone in the regulatory body’s efforts to enhance transparency and consumer trust in telecom services.

Framework Overview and Implementation Strategy

The new framework mandates all Principal Entities (PEs), including businesses, banks, and government agencies, to declare and register their message transmission paths. Using DLT, the system provides end-to-end traceability for every SMS from origin to delivery, ensuring data security and minimizing delays.

The regulation was first mandated on 20 August, with enforcement initially set for 1 November. TRAI stated that recognizing the scale of compliance required, TRAI extended the deadlines twice, first to 30 November and subsequently to 10 December, to accommodate the onboarding of approximately 1.13 lakh active PEs from diverse sectors, including banking, insurance, healthcare, and real estate.

TRAI adopted a phased and consumer-centric approach to minimize disruptions during the rollout. While enforcing the chain-binding regulations, messages sent through undeclared paths were temporarily allowed but flagged with error codes.

These codes were shared with the concerned entities, enabling corrective actions without disrupting critical communications like OTPs or time-sensitive alerts. This innovative strategy ensured uninterrupted services while maintaining regulatory compliance.

Collaborative Efforts with Stakeholders

The implementation involved extensive collaboration with key regulators such as the Reserve Bank of India (RBI), the Securities and Exchange Board of India (SEBI), the Insurance Regulatory and Development Authority of India (IRDAI), and the Pension Fund Regulatory and Development Authority (PFRDA).

TRAI also partnered with government agencies like the National Informatics Centre (NIC), the Centre for Development of Advanced Computing (CDAC), and various state governments to promote awareness and accelerate compliance.

Access providers played a pivotal role by conducting outreach campaigns and offering technical guidance to PEs and their telemarketers (TMs). This concerted effort ensured the seamless integration of the DLT system across sectors.

Full Implementation and Impact

Effective 11 December, TRAI has begun rejecting SMS traffic originating from unregistered paths, marking the culmination of this extensive exercise. The initiative complements TRAI’s other anti-spam measures, such as disconnecting telecom resources used by spammers, implementing URL whitelisting for SMS, and migrating 140-series telemarketers to the DLT platform.

TRAI’s efforts have significantly enhanced the security and transparency of the messaging ecosystem, reinforcing its commitment to safeguarding consumers from spam and fraudulent activities. The traceability framework is expected to set a benchmark for regulatory practices in the telecom sector globally.

Earlier this month, the Cellular Operators Association of India (COAI), representing major telecom operators, welcomed TRAI’s directive to enforce message traceability through PE-TM binding.

Lt. Gen. Dr S.P. Kochhar, Director General of COAI, called the move transformative, stating, “This initiative by TRAI, along with the efforts of TSPs, PEs, and TMs, will ensure traceability and security of commercial messages. It will protect consumers from fraudulent and unsolicited messages while fostering trust in communication networks.”

TRAI’s achievement underscores its role as a pioneer in adopting innovative technologies to address pressing challenges in the telecom industry. The authority has reaffirmed its commitment to driving innovation and enforcing stringent measures to ensure a secure, spam-free, and consumer-friendly telecom ecosystem.

As the framework becomes fully operational, stakeholders anticipate a substantial reduction in spam and an increase in consumer trust in commercial messaging systems.

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