SIM-binding mandate could disrupt consumers, raise business costs: Study

Hyderabad: A new study by the Esya Centre, a New Delhi-based technology policy think tank, has cautioned that the Department of Telecommunications' (DoT) SIM-binding directive could disrupt consumers' access to messaging services, raise costs for small businesses and do little to curb cyberfraud.

In November 2025, the DoT directed internet-based messaging applications to ensure that users' accounts remain linked to their registered SIM cards, under the Telecom Cyber Security Rules, 2024. The rules are set to take effect from January 1, 2027, Gadgets360 reported.

The directive also initially required automatic logout from web sessions every six hours, a requirement later replaced with risk-based logouts, the study said.

The study, titled "Rethinking India's SIM Binding Mandate: An Empirical Assessment," draws on surveys of 2,033 consumers across 18 Indian cities and 353 businesses across 17 cities.

Travel and emergency disruptions

The study found that SIM binding could significantly disrupt consumers' access to messaging services, particularly during international travel. Only 33% of surveyed international travellers use an Indian SIM with an active roaming plan, while 67.1% rely on alternatives such as local SIM cards or Wi-Fi-only access, it said.

Nearly 98.88% of surveyed consumers said losing messaging access due to an inactive primary SIM would cause moderate to extreme inconvenience, according to the study. A similarly high proportion expressed concern about losing access to internet-based calling during emergencies.

Among companion-device users, 97.7% considered forced logouts inconvenient, while 97% of consumers said periodic re-authentication through an Indian SIM while travelling would be disruptive, citing interrupted conversations and the time needed to reconnect, the study found.

Business costs

The study said Indian businesses have grown dependent on internet-based messaging for customer interactions and operations, with 92% of surveyed businesses relying on companion-device access and 86% using the same business number across multiple devices.

About 78% of surveyed businesses said restricting access to a single handset would be extremely or moderately disruptive, and 83.5% expected delays and operational errors, the study said. Further, 82% said forced logouts would disrupt ongoing workflows.

More than three-fourths, or 76.3%, of surveyed businesses anticipated an extremely or very significant financial impact, with 60.6% expecting higher workplace-related expenses, 58.6% expecting additional spending on devices and 55% foreseeing increased staffing requirements, according to the study.

Limited fraud-prevention gains

The study questioned whether SIM binding can effectively address contemporary cyberfraud, which it said increasingly exploits vulnerabilities such as social engineering, compromised credentials and malware rather than SIM-based identity verification alone.

Although 87.2% of surveyed businesses expressed concern about SIM-related fraud, 81% did not believe SIM binding would meaningfully improve security, the study found. Among consumers, 59% said they did not believe the directive would make messaging platforms safer.

The study said consumers may respond to SIM-binding restrictions by adopting additional connectivity arrangements: about 41% said they would obtain an additional SIM card, and 30.3% said they would buy a new device, responses that could raise costs without necessarily improving security.

What the study recommends

The Esya Centre recommended a more proportionate, risk-based approach to preventing fraud, focused on strengthening Know Your Customer (KYC) processes, reducing vulnerabilities in SIM issuance, strengthening fraud-detection systems and addressing mule-account networks, rather than restricting messaging-platform access.

Major regulatory interventions affecting digital communication systems should be accompanied by rigorous evaluation of their impact on communication resilience, business operations and user behaviour, the study said, adding that an evidence-based, proportionate framework would help strengthen fraud prevention while preserving the flexibility of India's digital communications ecosystem.

Esya Centre describes itself as a New Delhi-based technology policy think tank that conducts empirical research on issues at the intersection of technology, markets, innovation and public policy.