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Posted by Roopa Sudarshan in Society
November 8, 2017
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(Source: TRAI monthly subscription data)
The dip in the subscriber count for various telecom operators can be accredited to the phasing of registration of SIM cards through E-KYC for new mobile numbers. While there is a the possibility of addition of genuine subscribers in the following months, the direct subscriber acquisition cost (DSAC) has been significantly reduced owing to the overall reduction in subscriber addition (assuming exclusion of sunk cost).
Prior to the DoT directive, telecom service providers relied heavily on the documents provided by the subscribers for SIM registration. The two-fold impact of this was the delay in SIM activation, owing to the transfer of documents from the retailer to the distributor to the company and the possibility of documents not matching with the usage timeline of usage.
Additionally, tracking the ever-changing retailers was difficult for the service providers – and with the subscriber documents being collected and stored at one location by the service providers, verification of dummy subscribers was difficult.
With the introduction of Aadhaar linkage for mobile numbers, subscribers are held accountable for its usage, thereby tagging responsibility for any acts arising as a result. Savings from the digitisation of documents and paper should also be considered.
However, an increased number of job losses is possible, owing to the ‘optimisation’ of the process by way of document verification, servicing costs and reliance on third parties (to name just a few). Increased compliance costs are also an issue of concern.
The key question that looms prominently with the approaching deadline is how secure public data will be, given that it may possibly be linked with bank account numbers and income tax returns. With retailers using fingerprints of the subscribers to validate Aadhaar numbers with the mobile numbers at the time of SIM registration, there is an increased risk of exposure to identity theft.
While the government is increasingly trying to bring in a seamless process to assimilate data for transparency in analysing consumer patterns, it is suggested that they also allocate funds for enhancing the cyber-security of the data consolidated from this directive. Furthermore, cyber security regulations can be strengthened to avoid data leakages to third party organisations. Severe penalties should also be implemented to ensure robust compliance to these measures.
Featured image used for representative purposes only.
Featured image source: Soumitra Ghosh/Hindustan Times via Getty Images
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