With the increasing demand for Cloud Telephony services among businesses, service providers need to ensure that they adhere to the guidelines set by the Telecom Regulatory Authority of India (TRAI). Recently TRAI has ruled out a new set of regulations that has directly affected some businesses and the Cloud Telephony Services providers. Before we move forward to learning about the critical compliance update, let’s first understand who TRAI is, what they do, and why compliance is so important.
TRAI is the governing body that monitors telecom services in India and makes sure that the telecom service providers in India are legally compliant. These rules help protect consumer rights and customer privacy, prevent the misuse of telecommunication services and avoid spam or promotional calls to people who have opted out.
Moving forward, the Telecom Regulatory Authority of India has recently released a draft regarding a critical compliance update. Below are the key changes that telecom operators and customers need to be aware of:
1. Promotional Call Restrictions from Transactional Lines: According to TRAI regulations, any misuse of transactional lines for promotional purposes may lead to blacklisting by TRAI across all operators for up to two years.
2. Restrictions on DND List Outreach: Promotional calls are not allowed to any number listed on the DND registry, even if your brand has obtained opt-in or consent. Telemarketers (TMs) are required to register as Registered Telemarketers and use the 140 series for all promotional calls, including those made to customers who have previously given consent to receive such calls.
In a nutshell, below are the points that you, as a businessman, need to remember to make sure all your business operations are compliance-friendly:
▪ TRAI mandates that businesses must obtain digital consent of not more than 72 hours old for all commercial communications.
▪ Telemarketers must register on DLT platforms to engage in solicited calling.
▪ The number series (+91-140) is allocated for promotional and commercial calling by telemarketers.
▪ The number series (+91-160) is designated for transactional calls by the BFSI sector.
▪ Mandatory collaboration with licensed aggregators to comply with regulations from RBI, SEBI, IRDAI, PFRDA, and other legal entities.
▪ Prohibition on mixing promotional, upsell, cross-sell, or offer-related communications with transactional or service calls.
▪ Non-compliance to this regulation may result in the disconnection of services and even blacklisting for a period of two years, applicable across all telecom operators.
Now, why is Legal Compliance So Important?
Listed below are the key reasons why cloud telephony service providers must adhere to rules and regulations:
1. Legal Compliance
Non-compliance with the TRAI rules and regulations can result in business loss and serious consequences, such as fines, suspension of their services, or being blacklisted by the telecom department of India, impacting a service provider's reputation and their overall business. No company would ever want to face such penalties for breaking the law, and thus, being compliant keeps these providers out of trouble.
2. Preventing Spam and Unwanted Calls
One of the major key concerns that TRAI addresses is preventing spam and unsolicited calls. TRAI’s Do Not Disturb (DND) regulations are designed to stop these providers from dialing these numbers or sending promotional messages to people.
3. Building Trust with Clients
For businesses that rely on cloud telephony, partnering with a service provider that follows TRAI regulations offers peace of mind. It shows that the provider values transparency, security, and customer protection. When cloud telephony providers comply with TRAI rules, it reassures clients that their services are safe and legally sound, helping build trust and long-term relationships.
4. Ensuring Smooth Operations
TRAI regulations are not just about preventing spam and securing data—they also ensure smooth operations for cloud telephony services. For example, telemarketers must register with TRAI and use the proper number series (140) for promotional calls. Failure to follow this can result in interruptions, as operators may block or restrict non-compliant calls. Sticking to the rules keeps everything running smoothly, without risking call disruptions or service interruptions.
As India’s first DoT-licensed mobile VNO, we, at CloudConnect, ensure that your business stays compliant, secure, and future-ready. So, if you're in the cloud telephony space or using these services, make sure you're on the right side of the law and providing your customers with the best, most secure experience possible. Contact us to learn more about this and our other services.
