SIMply Problematic 

Govt should rethink idea that SIM-binding will curb cyber fraud. Biggest impact will be consumer inconvenience

GOI’s push for continuous SIM-binding for messaging apps like WhatsApp and Signal appears to be a classic case of throwing the baby out with the bathwater. Govt has been pitching the move as a way to counter cyber fraud and enhance security. But little attention has been paid to huge disruptions that’ll follow SIM-binding. SIM-binding means messaging apps are always tagged onto particular SIMs – so, app accounts and their users can be tracked. But the order fails to appreciate how these apps have become an essential part of daily life. 

India’s communication-platform-as-a-service market is slated to grow to $3.06bn by 2030. Consider this: India is a pre-paid dominated SIM market where low-income households frequently change SIMs to reduce costs and take advantage of the best telecom packages on offer. But SIM-binding kills this benefit in one stroke. Users will be immediately locked out of communication apps if they change SIM. And since messaging apps have essentially become the primary mode of communication in a relatively low-data-cost environment, reauthentication with new SIMs becomes a disincentive. Also, in many low-income households phones are shared. The order simply doesn’t account for this. 

On the other end of the spectrum, those who travel abroad frequently will not be able to use their Indian number-linked messaging accounts through Wi-Fi alone. Meanwhile, the order also mandates periodic logouts and reauthentication for desktop versions of these apps – govt’s proposal mandates this happens every six hours. This is disruptive for workflows and automated systems that use these apps. Aside from all these inconveniences, the measure might not curb fraud either. SIM-binding is for Indian numbers. So, it doesn’t account for fraudsters operating from abroad using foreign numbers. Nor does it account for remote access of devices located in India. SIM-binding merely creates a new burden for consumers without much benefit. Greater industry consultations must be held before it is rolled out.

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