The Department of Telecommunications (DoT) has put in additional know-your-customer (KYC) conditions for getting business connections, earlier called bulk conditions, in cases where the end users are not identifiable. The move is aimed to stop online fraud and meet specific needs of the industry.
In its directions issued to the telecom operators, DoT noted that in such a scenario, only telecom operators can issue connections after taking an undertaking from the subscribing entity that the SIMs would be used for specific purposes like testing etc. Meanwhile, retailers will not be allowed to issue such connections as KYC of every number will not be done in such cases.
In addition, the telcos can also issue a maximum of up to 100 connections for any given entity at a given time and such connections should not be used for machine-to-machine communications.
Further, DoT added that in those scenarios where end-users are not identifiable in a business connection such as SIMs obtained for research and development (R&D) and testing activities for a specified purpose, the requirement of end-user KYC is optional. However, for this category of customers, mobile connections shall be issued by the licensee’s employees only.
Putting in additional safeguards, DoT added that before issuing such connections, the telco shall obtain an undertaking from the subscribing entity detailing the use case scenarios having no end users and the telco should satisfy itself that the use cases are realistic. Further, the telco should monitor use of such connections by the subscribing entities. The telcos should also inform in writing to the subscribing entity that the responsibility of bonafide usage of such business connections lies with the subscribing entity.
As per the directions, during the renewal of validity, the telco should satisfy itself by usage patterns from the past as well as proposed usage for the upcoming year. Further, it is also clarified that the license conditions related to bulk connections, and bulk users in the existing license agreements, shall also be applicable mutatis mutandis for business connections and business users.
Furthermore, resale of SIMs by business connections subscribing entities is not permitted and the telcos shall ensure that subscribing entities obtain mobile connections for their own use and shall not obtain such connections for third parties.
