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ALERT: OTP SMS Blackouts How New TRAI Rules May Impact Your Transactions from November 1st

Written by JM

Published on :

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CORE HIGHLIGHTS
  • India’s top telecom companies have warned of potential disruptions in SMS alerts and updates, including OTP SMS blackouts, starting from 1st November.
  • TRAI’s new rules require the source of every message to be traceable, impacting OTP and transaction SMS.
  • Telecom companies are requesting a delay due to technical challenges in implementing these rules.
OTP sms Blackouts
OTP SMS Blackouts

Indian Telecom industry is bracing for major changes as new regulations from the Telecom Regulatory Authority of India (TRAI) take effect. These rules, introduced in August, aim to increase accountability by ensuring that the source of every message can be traced. The primary goal is to reduce spam and fraudulent messages, improving transparency for customers.

However, leading telecom operators like Bharti Airtel and Reliance Jio have expressed concerns that these rules could significantly impact the delivery of critical alerts like bank transactions and OTP SMS. The Cellular Operators Association of India (COAI) has formally requested TRAI to relax the rules due to concerns about technical limitations. These delays could affect the ability of banks, e-commerce platforms, and financial institutions to send timely messages to customers, causing inconvenience to millions.

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OTP SMS Blackouts | No OTP

The upcoming rule change has sparked widespread debate. The requirement to trace the source of every SMS poses a challenge for various businesses that rely on timely message delivery, such as banks and e-commerce platforms. Without the necessary technical solutions in place, telecom companies fear that their ability to send OTPs and other important updates may be disrupted. Telecom companies, in collaboration with Principal Entities (PE), are working to resolve these issues by providing daily compliance reports.

Despite efforts to minimize the impact on customers, there is still a risk of OTP SMS blackouts, which could lead to significant disruptions in online transactions and services. This potential blackout is the second time that telecom companies have requested an extension to comply with TRAI’s commercial message regulations.

In addition to these changes, TRAI has also stepped up its fight against spam calls. Recently, telecom operators disconnected over 2.75 lakh mobile connections and blacklisted over 50 firms for misusing telecom connections for spam calls. TRAI has received over 7.9 lakh complaints about promotional calls from unregistered telemarketers in the first half of this year alone. To address this, telecom companies have taken strict actions against unregistered telemarketers, ensuring that customers are protected from such disturbances.

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The introduction of TRAI’s new regulations marks a significant step towards enhancing transparency in the telecom industry. However, the technical challenges involved in tracing SMS sources have led to concerns about potential service disruptions, particularly with OTP and transaction alerts. Telecom companies are striving to ensure compliance while minimizing the impact on customers.

As the deadline approaches, it remains to be seen how effectively these issues will be resolved to prevent widespread OTP SMS blackouts.

FAQ

What is the reason for potential OTP SMS blackouts?

The new TRAI rules require all SMS sources to be traceable, causing technical challenges for telecom operators.

When could these disruptions start?

The disruptions are expected from 1st November, as telecom companies implement the new rules.

Which services could be affected?

OTPs for bank transactions, account alerts, and e-commerce notifications could face delays or disruptions.

How are telecom companies addressing this issue?

Telecom operators are working with Principal Entities to provide compliance reports and minimize customer impact.

"I write about the latest news in the Indian Telecom sector, mobile recharge, mobile launches, tips, and tricks. My goal is to provide my readers with the latest telecom news, all essential information about mobile recharge, the latest information related to mobile, technical support, and advice."
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