Foreign SIM/ eSIMs: The Telecom Regulatory Authority of India (TRAI) has today released its recommendations on ‘the Regulatory Framework for the Sale of Foreign Telecom Service Providers’ SIM/ eSIM Cards for the use in M2M/ IoT Devices Meant for Export’.
Department of Telecommunications (DoT), Ministry of Communications, Government of India, through its letter dated 17.09.2024, requested TRAI to provide recommendations under section 11(1)(a) of TRAI Act, 1997 on the terms and conditions for the issue and renewal of no objection certificate (NOC) for the import/ sale of foreign telecom service providers’ SIM/ eSIM cards for the use in M2M/ IoT devices meant for export purposes.
In this regard, TRAI, on 04.07.2025, issued a consultation paper on ‘the Regulatory Framework for the Sale of Foreign Telecom Service Providers SIM/ eSIM Cards for the use in M2M/ IoT Devices Meant for Export Purposes’ for seeking comments and counter comments from stakeholders. In response, nine stakeholders furnished their comments. An open house discussion (OHD) on the consultation paper was held on 25.09.2025 through online mode.
Based on the comments received from stakeholders during the consultation process, and further analysis, TRAI has finalized its recommendations on ‘the Regulatory Framework for the Sale of Foreign Telecom Service Providers SIM/ eSIM Cards for the use in M2M/ IoT Devices Meant for Export’.
Machine-to-Machine (M2M) communication and Internet of Things (IoT) together are shaping the landscape of infrastructures across industries like energy grids, transportation systems, water supply networks and agriculture. Indian manufacturers of M2M/ IoT devices (like smart meters, connected cars, industrial sensors) often need to embed foreign telecom service providers’ SIM/ eSIM cards so that devices can function seamlessly in the destination country.
Currently, there is no regulatory framework in the country for the sale of foreign telecom service providers’ SIM/ eSIM cards for M2M/ IoT devices meant for export. An enabling regulatory framework is required to ensure regulatory coherence, and smooth export operations while taking care of security concerns when Indian manufacturers embed foreign telecom service providers’ SIM/ eSIM cards in IoT/ M2M devices meant for export.
Key highlights of the TRAI’s recommendations:
- The sale of foreign telecom service providers’ SIM/ eSIM cards for the use in M2M/ IoT devices meant for export should be regulated through a light-touch service authorisation under the Telecommunications Act, 2023. This new service authorisation should be termed as “International M2M SIM Service Authorisation”.
- The International M2M SIM Service Authorisation should be granted online with digitally signed auto-generated authorisation.
- Any company registered under the Indian Companies Act should be eligible to obtain the International M2M SIM Service Authorisation. The Entry fee, Minimum Equity, Minimum Net-worth, Bank Guarantee, and Authorisation Fee for the authorisation should be NIL. Application Processing Fee for the authorisation should be Rs. 5,000. The validity period of the authorisation should be 10 years.
- For testing purposes, the foreign telecom service providers’ SIM/ eSIM cards should be permitted to be activated in India for a maximum period of six months.
- With a view to unlock the market potential for Indian exporters and importers operating in M2M/ IoT segment, TRAI has recommended that DoT should coordinate with the concerned ministries of the Central Government (Ministry of Finance, Ministry of Commerce etc.) to lay down a clear regulatory framework for enabling the import of foreign telecom service providers’ SIM/ eSIM cards for use in M2M/ IoT devices meant for export, and the export of Indian telecom service providers’ SIM/ eSIM cards for use in M2M/ IoT devices meant for import.
These recommendations of TRAI would support the Government’s “Make in India” initiative, encouraging local manufacturing for global markets. The regulatory framework for International M2M SIM Service Authorisation recommended by TRAI would make Indian products with M2M capability more attractive globally. It would help Indian enterprises compete with established global players in IoT/ M2M markets.
The Recommendations have been placed on the TRAI’s website (www.trai.gov.in). For any clarification/ information Shri Akhilesh Kumar Trivedi, Advisor (Networks, Spectrum and Licensing), TRAI may be contacted at Telephone Number +91-11-20907758.
