DoT issues guidelines for regulating M2M Service Providers

On 8 February 2022, the Department of Telecommunications (DoT) released guidelines for registration of ‘Machine to Machine’ (M2M) service providers namely, ‘Registration Process of M2M Service Providers (M2MSP) & WPAN/WLAN Connectivity Provider for M2M Services’ (M2MSP Guidelines).

Background

The government has been working on a regulatory framework for the M2M ecosystem for the past few years. It has taken nearly seven years since the issuance of the M2M roadmap by DoT in 2015 to bring a degree of certainty to the regulatory framework relating to M2M communications. With the recent inclusion of the M2M service authorisation in the Unified License (UL) framework (UL (M2M)), the issuance of the M2MSP Guidelines somewhat completes the loop.

Through the M2MSP Guidelines, the government has mandated registration of M2MSPs and WPAN / WLAN Connectivity Providers with a view to recognize and regulate entities that offer M2M services in India. The M2MSP Guidelines also seek to address concerns relating to issues like M2MSPs’ interface issues with telecom service providers (TSPs), requirements relating to know your customer (KYC), security and encryption, etc.

Scope of the M2MSP Guidelines

M2M Services are defined as services offered through a connected network of objects/devices, with unique identifiers, in which M2M communication is possible with predefined back-end platform(s) either directly or through some gateway. The M2MSP Guidelines apply to entities that:

The M2MSP Guidelines also apply to entities that use M2M services or WPAN / WLAN for M2M connectivity for captive, non-commercial use.

However, in case any authorized TSP wishes to provide M2M Services to third parties, it can do so under the telecom licensing framework without registering under the M2MSP Guidelines.

Key requirements prescribed under the M2MSP Guidelines

A host of requirements have been prescribed in respect of M2MSP or WPAN / WLAN Connectivity Provider in the M2MSP Guidelines, including the following:

Comment

With the expected introduction of 5G services in India and the increase in adoption of IoT and smart devices, the M2MSP Guidelines, along with the UL (M2M) that was released recently, have been introduced by DoT at a timely juncture. 

While the M2MSP Guidelines seek to delineate the obligations of M2MSPs, the applicability of the M2MSP Guidelines may create a fresh set of challenges for the industry. The M2MSP Guidelines are not only applicable to M2MSPs providing M2M services through telecom resources, but they also apply to “third parties utilising M2M services from registered M2MSPs in connection with its products or as part of its offerings to its end customers as a product or service”. This requirement will cut across sectors like household appliances, automobiles, wearable technology, healthcare, hospitality, etc. all of which use M2M communications in some form of the other.

Also, the M2MSP Guidelines have stopped short of commenting on certain long pending issues, like the use of international SIMs on permanent roaming for M2M communication / imported M2M devices. It was expected that the M2MSP Guidelines may touch upon this aspect in greater detail, but it appears that this will have to wait longer.

As the issuance of the M2MSP Guidelines is a fairly recent development, it will have to be seen how the DoT executes the guidelines. Considering that M2M and IoT are emerging technologies that have a huge potential for growth, the regulator should offer the required support to the industry, especially at such early stage.

-         Harsh Walia (Partner), Shobhit Chandra (Principal Associate) and Aditya Sharma (Associate)

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