NEW DELHI: India is witnessing unprecedented growth in digital communication, especially through Application-to-Person (A2P) SMS, which had become a significant tool for businesses to connect with customers. However, the rise in A2P SMS has also brought about an alarming increase in phishing scams, fraudulent SMS, and misuse of Principal Entities' (PE) message templates. This growing digital threat has called for immediate action to safeguard consumers, businesses, and telecom operators from potential financial losses and reputation damage.

Enter Telecommunications Consultants India Ltd. (TCIL), a public sector enterprise under the Department of Telecommunications (DoT) that has developed a revolutionary Traceability and Transparency (T&T) Solution to address this problem. This article delves deep into the solution, its relevance, and the impact it is poised to have on India's digital communication landscape.

Delhi-based public sector company offers IT engineering and telecom consulting services, and in FY 2022-23 paid nearly Rs 150 million (15-crore) as a dividend to the Central government.

"We have developed the SMS Traceability and Transparency Platform in collaboration with an indigenous technology partner. The domestically designed and developed solution uses artificial intelligence (AI) technology and distributes only verified message content by blocking fraudulent URLs (static and dynamic), and it effectively prevents unsolicited commercial communication,” said Sanjeev Kumar, Chairman, TCIL.

Understanding the A2P SMS Landscape in India

With over 2 billion commercial messages sent daily, A2P messaging has become essential for businesses and governments to engage with their consumers, notify them about transactions, send promotions, or even provide customer support.

Despite its widespread use, the A2P SMS ecosystem is rife with increasing challenges such as phishing, spoofing, and identity theft. Scammers exploit vulnerabilities in the communication chain to defraud consumers. Additionally, unregistered telemarketers misuse headers and content templates, leading to unsolicited commercial communication (UCC) and financial fraud that affect millions of Indians every year.

The Role of the Telecom Regulatory Authority of India (TRAI)

To combat the increasing fraud in the A2P SMS space, TRAI has issued several directives aimed at controlling SMS fraud. Key directives issued in February 2023, May 2023, and August 2024 have provided a clear framework for telecom operators and Principal Entities (PEs) to ensure the safe transmission of messages and prevent the misuse of headers, content templates, and URLs (Static and Dynamic).

Compliance has been a major issue despite these directives with all telecom operators. Telecom operators have been slow to adopt solutions, putting them at risk of hefty penalties. TRAI has expressed growing frustration with this non-compliance, threatening fines of up to Rs 50 crore for those telecom operators failing to control SMS fraud effectively.

The TCIL Solution: A Comprehensive Approach to SMS Security

The TCIL Traceability and Transparency (T&T) Solution is a comprehensive system designed to combat SMS fraud by providing complete visibility into the communication chain, from the Principal Entity to the end consumer. It enables real-time tracking of all A2P SMS traffic and blocks fraudulent URLs (Static and Dynamic), contact numbers, and unauthorised message templates.

Its key features include:

● Traceability of Messages: TCIL’s platform ensures the traceability of messages from the PE to the recipient, providing transparency at every step of the communication chain.

● Blocking of Fraudulent Content: The solution scans live A2P SMS traffic, detecting and stopping SMS with malicious content, such as fraudulent URLs (Static and Dynamic) or contact numbers.

● Real-Time Monitoring and Reporting: The T&T portal offers real-time monitoring and delivery reports, allowing PEs to verify message counts and ensuring the communication process is transparent and secure.

Technical Implementation and Compliance with TRAI Directives

The TCIL T&T portal fully complies with the TRAI directives issued on February 16, 2023, May 12, 2023, and August 20, 2024. Through pilot tests and successful live demonstrations, the T&T portal has proven its ability to comply with these directives while fully providing enhanced security features.

Pilot Testing and Industry Demonstrations

TCIL conducted several Proof of Concept (PoC) and live demonstrations of its T&T solution:

● April 6, 2023: Live demonstration to TRAI under the Chairmanship of the Secretary on MTNL Network.

● May 25, 2023: Live demonstration to Bharti Airtel Ltd.

● November 29, 2023: Live demonstration to Digital Intelligence Unit (DIU) under the Chairmanship of the DDG (AI & DIU).

● July 9, 2024: Live demonstration to the Cellular Operators Association of India (COAI), major telecom service providers, and key telemarketers.

● August 6, 2024: Live demonstration to TRAI, COAI, and key industry stakeholders.

● September 26, 2024: Live demonstration to Ministry of Home Affairs.

TCIL has successfully completed User Acceptance Test (UAT) of the T&T solution with key telecom Operators:

● V-Con Mobile & Infra Pvt. Ltd (VMIPL): May 21, 2024

● Quadrant Televentures Limited (QTL): July 27, 2024

5.3 Pilot Testing with Telecom Operators

TCIL has also initiated pilot testing of the T&T solution with key telecom Operators:

● Vodafone Idea Limited: July 31, 2024

● Bharat Sanchar Nigam Limited (BSNL): August 8, 2024

These tests have validated the system’s ability to track and secure A2P messages, leading to its endorsement by government and financial institutions.

Impact on Telecom Operators and the Broader Industry

Telecom Operators are often victims of fraudulent SMS count manipulation. TCIL’s solution not only blocks fraud but also ensures that Operators can track and verify the exact number of SMS messages transmitted through their systems. This will help Operators recover lost revenue and prevent future losses caused by fake call data records (CDRs).

The T&T solution aims to protect Indian consumers from financial fraud by preventing phishing and vishing attacks. By ensuring that only registered telemarketers can send SMS and blocking malicious URLs(Static and Dynamic) and contact numbers, TCIL's solution will drastically reduce identity theft and fraud incidents.

TCIL’s T&T solution is a significant step towards Prime Minister Narendra Modi’s vision of a fraud-free Digital India. With over 1.3 crore incidents of phishing reported and Rs 15,000 crore lost to scams annually, the need for such a solution is critical.

As TRAI continues to push for compliance, telcos and businesses must prioritise security measures to prevent further revenue losses and protect their consumers.

Adopting TCIL’s T&T portal by all telecom service operators is crucial for ensuring a secure digital ecosystem.

(A sponsored feature initiative)