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M2MSPs Must Register with DoT to Address Service Issues

CIO Insider Team | Friday, 11 February, 2022
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Machine-to-Machine service providers must register with the Department of Telecommunications (DoT) to address issues related to security, interface with telecom companies and others.

Yet, telecom operators can proceed with the department’s current license without registering for the service when providing M2M service to third parties.

The communication between devices, such as the deduction of money on a toll plaza using Fastag and sending an alert to the subscriber about the deduction of money, falls under the M2M category, in which the message will be sent automatically without the intervention of humans.

The measure, according to TV Ramachandran, president of the Broadband India Forum, will liberalize the country's young M2M market.

CIO Insider reported that DoT announced the M2M guidelines in 2018, but lacked provisioning conditions in telecom licenses.

“With the advent of 5G on the anvil and the explosive growth expected in the M2M/IoT sector, these guidelines could not have come at a more appropriate time. This will also encourage startups to develop myriad innovative applications and solutions for the benefit of the citizens”, says Ramachandran

Telecom carriers interested in supplying M2M services across India will be required to pay a Rs 30 lakh entry fee, a Rs 40 lakh performance bank guarantee (PBG), and a Rs 2 lakh finance bank guarantee (FBG).

The circle level category costs Rs 2 lakh, the PBG category costs Rs 2 lakh, and the FBG category costs Rs 20,000 to enter. The admission fee, PBG, and FBG at district level will be Rs 20,000, Rs 10,000, and Rs 2,000, respectively.

All sorts of telecommunications service licenses are believed to be affected by the modification.

As part of the telecom license, the DoT has incorporated a provision for audiotex or interactive voice response service (IVRS) supply.

Meanwhile, the three main mobile carriers in the country have requested a 90-95 percent drop in the base price for the 5G auction in the 3300-3670 band. The regulator had previously recommended a price of Rs 492 crore per MHZ for pan-India spectrum in this band.

“In order to address concerns like interface issues with TSP (telecom service provider), KYC, security and encryption, all M2M service providers utilizing facilities from authorized TSPs should have M2MSP (M2M service provider) registration”, says DoT.

“With the advent of 5G on the anvil and the explosive growth expected in the M2M/IoT sector, these guidelines could not have come at a more appropriate time. This will also encourage startups to develop myriad innovative applications and solutions for the benefit of the citizens”, says Ramachandran.



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