Telcos may use UIDs to verify subscriptions
Shauvik Ghosh
Jul 26, 2010
Jul 26, 2010
(Mint - McClatchy-Tribune Information Services via COMTEX) --
Telecom operators may be able to use the unique identity cards, or UIDs, that will be issued to all residents under the government's Aadhaar project to verify new mobile phone and fixed line subscribers.
Top officials of the department of telecommunications (DoT) and the Unique Identification Authority of India (UIDAI), the nodal agency for the Aadhaar project, plan to form a team to work out ways of using UIDs to fulfil so-called "know your customer" norms for telcos.
Deputy directors general of the two bodies met on 12 July to discuss the idea, a senior DoT official said. UIDAI has called another meeting that will include DoT, UIDAI and telco executives.
"We will be meeting them next week to see how the two can work," another senior DoT official said. Both spoke on condition of anonymity.
DoT secretary P.J. Thomas has also written to UIDAI director general R.S. Sharma to make a case for the telecom sector using UIDs.
"The UIDAI is deploying a robust verification process for issuing unique ID numbers to the residents in the country.," Sharma wrote.
"UID can thus be treated as a valid proof of identity for compliance with 'know your customer' guidelines for the purposes of acquiring newtelecom connections. This could enable millions of people to acquire mobile/landline connections, which could become the medium for their empowerment and achieve our target of inclusive growth," he added.
UIDAI is expected to roll out the first set of numbers between August and February.
The government has made it mandatory for telecom service providers to verify customers to make it tougher for terrorists and criminals to operate.
But in a country where passports, ration cards, driving licences and election cards are not ubiquitous, operators often find it difficult to verify the identity of subscribers.
Last month, India's home ministry asked operators in insurgency-hit Jammu and Kashmir to increase the percentage of verified customers after an audit found that verification in the state was a low 35%.
Using UIDs for verification will make the process easier and cheaper for telcos.
"It would make things far simpler for telecom operators. The expenditure on physical verification that is done at present is an expensive exercise. The provision of the UID would bring the cost down as well as ensure greater subscriber verification," a Mumbai-based brokerage analyst said.
"They also have a cost involved for penalties for unverified customers, which will also come down," the analyst added, on condition of anonymity as his organization does not authorize him to speak to the media.
Combining UIDs with mobile phones can also potentially bring a number of special services and applications for customers. These include financial services as well as mobile governance, under which users will be able to access government records, make applications and pay bills.
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Deputy directors general of the two bodies met on 12 July to discuss the idea, a senior DoT official said. UIDAI has called another meeting that will include DoT, UIDAI and telco executives.
"We will be meeting them next week to see how the two can work," another senior DoT official said. Both spoke on condition of anonymity.
DoT secretary P.J. Thomas has also written to UIDAI director general R.S. Sharma to make a case for the telecom sector using UIDs.
"The UIDAI is deploying a robust verification process for issuing unique ID numbers to the residents in the country.," Sharma wrote.
"UID can thus be treated as a valid proof of identity for compliance with 'know your customer' guidelines for the purposes of acquiring newtelecom connections. This could enable millions of people to acquire mobile/landline connections, which could become the medium for their empowerment and achieve our target of inclusive growth," he added.
UIDAI is expected to roll out the first set of numbers between August and February.
The government has made it mandatory for telecom service providers to verify customers to make it tougher for terrorists and criminals to operate.
But in a country where passports, ration cards, driving licences and election cards are not ubiquitous, operators often find it difficult to verify the identity of subscribers.
Last month, India's home ministry asked operators in insurgency-hit Jammu and Kashmir to increase the percentage of verified customers after an audit found that verification in the state was a low 35%.
Using UIDs for verification will make the process easier and cheaper for telcos.
"It would make things far simpler for telecom operators. The expenditure on physical verification that is done at present is an expensive exercise. The provision of the UID would bring the cost down as well as ensure greater subscriber verification," a Mumbai-based brokerage analyst said.
"They also have a cost involved for penalties for unverified customers, which will also come down," the analyst added, on condition of anonymity as his organization does not authorize him to speak to the media.
Combining UIDs with mobile phones can also potentially bring a number of special services and applications for customers. These include financial services as well as mobile governance, under which users will be able to access government records, make applications and pay bills.
To see more of Mint, or to subscribe to the newspaper, go to
http://www.livemint.com. Copyright (c) 2010, Mint, New Delhi Distributed by
McClatchy-Tribune Information Services. For more information about the content
services offered by McClatchy-Tribune Information Services (MCT), visit
www.mctinfoservices.com, e-mail services@mctinfoservices.com, or call
866-280-5210 (outside the United States, call +1 312-222-4544).
Copyright (C) 2010, Mint, New Delhi
