Telecom industry lobby group COAI yesterday released a statement that SIM Binding will not “disrupt user convenience” or privacy. I’m going to address some of their claims, though not in the order they’ve listed them:
On Impact on enterprise messaging, CRM, APIs and business workflows:
COAI says: SIM-binding does not disrupt enterprise messaging, CRM systems, APIs or business workflows. It operates purely at the user account level, ensuring that each account is tied to a verified SIM. These enterprise solutions can continue to operate as long as the underlying user accounts — whether customer-facing or automated business numbers — are associated with valid, verified SIMs.
Where they’re wrong: COAI needs to read the regulation again. It states:
i. From 90 days of issue of these instructions, ensure that the App based Communication Services is continuously linked to the SIM card (associated with Mobile Number used for identification of customers/users or for provisioning or delivery of services) installed in the device, making it impossible to use the app without that specific, active SIM.
ii. From 90 days of issue of these instructions, ensure that the web service instance of the Mobile App, if provided, shall be logged out periodically (not later than 6 hours) and allow the facility to the user to re-link the device using QR code.
So two things: First, the way business apps integrate with an account is via API and authentication, and there’s no SIM card on the device where the business messaging service is automated for engaging with customers; it’s via a client server. As per the regulation, it is supposed to be impossible to use the app without that specific, active SIM, then they can’t. Secondly, even if they connect via the web interface, they’ll get logged out every six hours. So COAI is wrong here, probably because they don’t understand how Internet businesses work.
Second, COAI is also making a distinction between enterprise accounts and user accounts, whereas on the Internet, and with WhatsApp for business, users can also buy business accounts. The TRAI’s historic Differential Pricing Regulation also doesn’t make that distinction between businesses because on the Internet, all users have the same opportunity. You don’t need a license to run an Internet business, nor do you need a company. Students can also build apps and automations, the same way that multibillion dollar organisations can. The regulation applies to ALL workflows, and there is no carve-out. SIM Binding can cause a nationwide disruption to solve a niche (but worrying problem) that businesses have nothing to do with.
On Application logout every six hours
COAI says: “The requirement for time-bound reauthentication, such as a six-hour logout cycle, aligns with best practices for identity-sensitive digital services like Fintech. High-value systems — including banking portals, DigiLocker, Aadhaar and…
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