DLT registration mandatory

Why is DLT registration mandatory? #

The Telecom Regulatory Authority of India (TRAI) has made NCPR registration mandatory for sending Bulk SMS. Every business entity that wants to communicate with its customers via Bulk SMS will now have to register on the Distributed Ledger Technology (DLT) platform and comply with the NCPR registry and NDNC registration requirements.

The growing menace of unsolicited SMS #

Mobile users in India are continually inundated with spam messages. According to a survey conducted by the online community platform LocalCircles, 78% of people stated that they receive 4 or more unwanted SMS every day. Further findings revealed that 70% of people continue to receive spam messages even after registering in the NCPR registry and NDNC registration.

TRAI has been actively addressing the issue of Unsolicited Commercial Communication (UCC) and has devised a framework for controlling spam texts. In 2007, TRAI established the National Do Not Call (NDNC), also known as the Do Not Disturb Registry, to combat the growing problem of unwanted calls and messages. Subsequent amendments to the NDNC registry led to the formation of the National Customer Preference Register (NCPR).

Despite the implementation of strict regulations, the problem of spam SMS continues to grow. TRAI has reported that it has received more than 2 million complaints related to unsolicited texts. On average, approximately 40 thousand complaints are received per month, as stated by TRAI.

The image below illustrates the increasing number of UCC complaints over the last few years, highlighting the ongoing challenges despite the presence of the NCPR registration and NDNC registry.

Drawbacks in the current regulatory framework #

1. The process of NCPR registration, which encompasses both the NCPR registry and NDNC registration, requires approximately 24 hours to set SMS receiving preferences. Enforcing the user’s set preferences takes an additional 7 days.
2. Resolving issues related to Unsolicited Commercial Communication (UCC) takes more than 7 days, mainly due to the challenges posed by a large number of fake user identities. The lack of efficiency in the existing system makes the complaint resolution process time-consuming.
3. Tracing the senders of spam messages becomes particularly challenging due to ambiguous identity proofs. Additionally, the transactional SMS route is often misused to send promotional messages.
4. Notably, cases brought to the attention of regulatory bodies like SEBI and RBI regarding spam texts are often related to financial, trade, and security markets and involve unauthorized entities. This lack of transparency in the current framework underscores the need for more effective NCPR registration and management of the NCPR registry and NDNC registration processes.

Due to the setbacks observed in the existing Bulk SMS system, there existed a need for a well-regulated, systematized, and transparent framework that considers the end user and safeguards consumer interests. TRAI has introduced DLT SMS, which aligns with the goals of NCPR registration, NCPR registry, and NDNC registration. 

Distributed Ledger Technology or DLT is an online panel maintaining the records of Headers, Templates, Customer Preferences, and complete details of all entities present in the framework. This framework enhances transparency and security, addressing the concerns related to spam messages

This system will be extremely secure as records will be added with a cryptographic signature that will be unique to each entity, ensuring authenticity and compliance with NCPR registration and NDNC registration requirements. Blockchain technology will be used to administer the system, further enhancing security and trust in the Bulk SMS framework.

Hence, DLT registration is mandatory as per TRAI regulations, aligning with the objectives of NCPR registration, NCPR registry, and NDNC registration, and every entity will have to get registered on the DLT platform to send Bulk SMS while adhering to these requirements.

FAQ #

1. Why has the Telecom Regulatory Authority of India (TRAI) made DLT registration mandatory for sending Bulk SMS? #

TRAI has made DLT registration mandatory to combat the growing problem of unsolicited spam SMS messages. It ensures that businesses comply with the National Customer Preference Register (NCPR) and National Do Not Call (NDNC) registration requirements, promoting responsible SMS communication.

2. What is the scale of the issue of spam SMS messages in India, and how has it impacted mobile users? #

Spam SMS messages are a significant issue in India, with 78% of mobile users receiving four or more unwanted SMS daily. Even after registering in the NCPR registry and NDNC registration, 70% of users continue to receive spam messages, highlighting the need for stricter regulations.

3. How has TRAI addressed the problem of Unsolicited Commercial Communication (UCC) in the past, and what challenges persist despite these efforts? #

TRAI established the NDNC registry and later the NCPR to control UCC. However, despite these efforts, the problem of spam SMS messages persists, with over 2 million complaints received by TRAI. Challenges include the time-consuming complaint resolution process and issues related to tracing senders.

4. What are the drawbacks of the current regulatory framework, and why is there a need for DLT registration? #

Drawbacks include delays in setting SMS preferences, inefficiencies in resolving UCC complaints, challenges in tracing senders, and misuse of the transactional SMS route for promotions. DLT registration is introduced to create a well-regulated, transparent, and secure framework that aligns with NCPR and NDNC registration goals.

5. How does Distributed Ledger Technology (DLT) enhance the Bulk SMS framework’s transparency and security? #

DLT maintains records of Headers, Templates, Customer Preferences, and entity details, adding cryptographic signatures unique to each entity. This enhances authenticity and compliance with NCPR and NDNC registration. Blockchain technology further strengthens security and trust.

6. Why is DLT registration essential for businesses and entities, and how does it benefit consumer interests? #

DLT registration is essential to adhere to TRAI regulations and ensure responsible SMS communication. It benefits consumers by reducing spam messages and providing a secure and transparent system that safeguards their preferences and privacy.