From Cars to Grids, No More SIM Service Shocks
DoT Plugs a Critical Gap in India’s IoT Network
New Rules Keep M2M Networks Always Connected
New Delhi: India has introduced a regulatory framework to ensure that its rapidly expanding web of connected devices — from smart vehicles and medical sensors to industrial controllers and household meters — can maintain uninterrupted service even when their Machine-to-Machine (M2M) SIM cards change ownership.
The Department of Telecommunications (DoT) under the Ministry of Communications has formally issued an Office Memorandum notifying the Framework for Transfer of M2M SIM Ownership between licensed Machine-to-Machine Service Providers (M2MSPs). The move fills a long-standing regulatory void: until now, there was no provision to change the ownership of M2M SIMs once issued, which often caused disruption of services when a transfer of service providers became necessary.
The new framework applies to all M2M Service Providers and Licensees operating under the jurisdiction of the DoT and aims to establish a transparent, auditable, and standardised mechanism for such transfers. It provides a structured process that enables ownership transitions without any service interruption to end users, ensuring that each M2M SIM remains mapped to an authorised provider at all times. DoT has advised stakeholders to adopt the procedure immediately, but the direction is advisory in nature — focused on aligning systems for compliance rather than setting an immediate enforcement deadline.
Under the procedure, the transfer process can be initiated either by the M2M service user or by a third party, such as an authorised reseller or agent managing the service on behalf of the end user. The user or third party must submit a written transfer request to the existing M2M Service Provider or Licensee (the transferor), identifying the SIMs to be transferred and naming the new service provider (the transferee).
Within fifteen days of receiving such a request, the transferor is required to issue a No Objection Certificate (NOC) to the relevant Access Service Provider (ASP), provided that there are no outstanding dues from the M2M service user. Once the NOC is issued, the transferee M2M Service Provider or Licensee must submit a formal undertaking or declaration to the Access Service Provider, accepting all responsibilities, liabilities, and regulatory duties associated with the transferred M2M SIMs. This includes compliance with Know Your Customer (KYC) norms and all other related guidelines.
The Access Service Provider must verify both the transferor’s NOC and the transferee’s undertaking before carrying out KYC again and updating subscriber records to reflect the new ownership. This ensures that ownership changes do not lead to service suspension and that regulatory accountability is maintained throughout the process. The framework explicitly stipulates that at no stage shall an M2M SIM be left unassociated with a licensed service provider.
The Office Memorandum further includes standardised formats for the user-initiated request, the transferor’s No Objection Certificate, and the transferee’s undertaking or declaration. These documents, along with the complete framework, are publicly available on the DoT website at https://dot.gov.in/all-circulars?tid=3197.
Officials noted that the framework intends to minimise the operational challenges faced by M2M users and service providers when ownership transitions occur due to mergers, acquisitions, or restructuring of service operations. The process ensures business continuity for connected systems that rely on consistent machine communication, such as logistics networks, telematics systems, medical monitoring devices, and industrial automation units.
Each stage of the process has been defined to balance regulatory oversight with operational efficiency. Field-level monitoring and periodic verification are expected to be undertaken by the Access Service Providers to ensure that compliance standards — including those related to customer verification and service traceability — are fully met.
The framework reinforces DoT’s stated objective of protecting end-user interests while supporting the operational flexibility of service providers. It reflects the government’s continuing efforts to ensure that India’s expanding Machine-to-Machine and Internet of Things (IoT) ecosystem remains robust, compliant, and future-ready.
By providing a clear, auditable mechanism for ownership transfer, the framework also supports larger policy goals of promoting digital reliability across sectors such as transport, energy, health care, and manufacturing. DoT officials described it as part of a broader effort to improve regulatory clarity in an area that underpins India’s digital transformation.
– global bihari bureau
