1 week ago
Biometric SIM Rules May Strain Small Businesses
New rules will require people using business SIM cards to prove their identity with biometrics.
Biometrics can include personal body-based details used for identification.
A business may need to verify not only its main representative but also workers using its SIM cards.
If a worker changes, the business must report the change and verify the new person.
If it does not, the phone connection could be suspended.
This may be difficult for small companies with workers who frequently change or share phones.
Experts also say employees may have privacy concerns because their identities are repeatedly connected to work phone numbers.
One expert said the government can create exemptions, but another warned that telecom companies may be cautious about granting them.
Experts say mandatory biometric verification for SIM issuance and related services could create operational hurdles for small businesses.
Businesses may need to verify each end user and repeat the process whenever staff or SIM users change.
Unverified replacement users could lead to suspension of the business connection until verification is completed.
CUTS International warned that microenterprises may face greater relative strain, while medium-sized firms could bear higher absolute costs.
The Quantum Hub said authorities can exempt certain users or user classes, but CUTS said telecom providers may apply exemptions cautiously.
- Who
- Small businesses, their employees and end users, telecom service providers, and digital-rights and policy experts including CUTS International, the Internet Freedom Foundation, and The Quantum Hub.
- What
- A biometric verification mandate for SIM issuance and business connections is expected to create recurring compliance, administrative, financial, and privacy burdens for smaller firms.
- Where
- The mandate applies to business telecom connections and related SIM services; the article does not specify a location.
- When
- The rules were discussed in an article published on August 25, 2026; verification is required within the period specified on the telecom portal when an end user changes.
- Why
- The requirements are intended as a cybersecurity measure, but experts warn they may be difficult for businesses with frequent staff changes and multi-SIM workflows.
Concerns About Compliance Burdens
Arguments for Calibrated Implementation
Impact on small businesses
Concerns About Compliance Burdens
Digital-rights and policy experts say repeated biometric checks, staff-change notifications, and possible connection suspensions could impose substantial administrative, financial, and privacy costs on smaller firms.
Arguments for Calibrated Implementation
The Quantum Hub said the government has the ability to exempt particular end users or classes of end users, allowing implementation to be adjusted.
Exemptions for smaller firms
Concerns About Compliance Burdens
CUTS International said exemptions may depend on telecom providers, which could err on the side of caution and make relief uncertain for businesses.
Arguments for Calibrated Implementation
The rules provide discretion to telecom service providers to make exemptions for small businesses, according to the article.
Security versus privacy
Concerns About Compliance Burdens
Supporters of the mandate frame biometric verification as a cybersecurity measure for SIM-related services.
Arguments for Calibrated Implementation
Critics warn that employees may face recurring privacy costs because their identities must repeatedly be linked to employer-controlled telecom connections.
Key facts
- Affected businesses
- Companies, partnerships, LLPs, trusts, societies, cooperative societies, and people holding a trade or business licence or permit.
- Verification requirement
- Biometric identification is ordinarily required for the authorised business representative and each end user of a business connection.
- Staff changes
- Businesses must notify the telecom operator and verify a new end user within the period specified on the portal.
- Possible consequence
- A business connection may be suspended if replacement-user verification is not completed.
- Cost concerns
- Microenterprises may face higher relative strain, while medium-sized enterprises may face higher absolute costs.
- Potential exemptions
- The government can exempt particular end users or classes of end users, while telecom providers may have discretion over some exemptions.
- Publication date
- August 25, 2026
Quotes
Amol Kulkarni
Director (Research) at CUTS International
“This may be manageable for a large company with HR and compliance departments. It is much harder for a small logistics company, shop, contractor or sales business where phones and SIMs may move between employees and field workers”
thehindubusinessline.com
“The regulations say exemptions can be made for small businesses depending on the discretion of telecom service providers. But then the responsibility falls on the TSPs, who will err on side of caution”
thehindubusinessline.com
Sources
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