India uses blockchain to limit spam calls and messages

India is increasingly relying on distributed ledger technology (DLT) to improve operations in various sectors, and the latest deployment of the technology is in telecommunications.

The Telecom Regulatory Authority of India (TRAI) has announced that it is using DLT to crack down on the activities of bad actors in the industry. A key problem that the Telecommunications Authority tackles is unsolicited commercial communications (UCC), a problem that affects millions of mobile phone users.

According to TRAI, users are met with a flood of messages from unregistered telemarketers, which can open the floodgates to fraud. To combat the problem, the regulator unveiled several strategies, including the use of distributed ledgers and cooperation with other regulators.

“Now complaints are being reported against unregistered telemarketers (UTMs), where an increase has been seen in pushing various types of UCC SMS,” TRAI’s statement read. “Additionally, UCC calls are also one of the concerns that need to be addressed in the same way along with UCC SMSes.”

The use of DLT has been hailed as one that will ensure transparency in the trading of telemarketers and that only registered operators on the distributed ledgers can send messages to customers. TRAI has been exploring DLT use to curb the menace of spam calls and messages since 2018 with the creation of the Telecom Commercial Customer Preference Regulations 2018.

Since the creation of the framework, several operators have registered on the platform after approval of their message templates. TRAI notes that the move has significantly reduced the number of customer complaints about unwanted texts from operators by an impressive 60%.

“TRAI is also running various campaigns to educate consumers, make them aware of the provisions and safeguards of the regulations, and alert them to such fraudulent messages,” the statement said.

All men on deck

TRAI also revealed that it would form a Joint Board of Regulators (JSOR) comprising the Reserve Bank of India (RBI), the Securities & Exchanges Board of India (SEBI) and the Ministry of Consumer Affairs (MoCA). The purpose of the body will be to collaborate on a general policy direction to eradicate instances of financial fraud in India’s telecommunications industry.

Turning to DLT is a nod to the growing reliance on Web 3 processes, following earlier announcements by Finance Minister Nirmala Sitharaman that it is looking at a 46% adoption rate. Civil society organizations are also striking partnerships with learning institutions to offer courses to Indians to deepen the local talent pool.

See: BSV Global Blockchain Convention panel, Blockchain in the Middle East and South Asia

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