New Study Warns Proposed SIM-Binding Mandate Risks Disrupting Businesses and Consumers

A new study by the think tank Esya Centre warns that India's proposed SIM-binding mandate will disrupt consumers and MSMEs while offering limited cybersecurity benefits. The Department of Telecommunications announced the directive in November 2025 to tie internet-based messaging apps to active SIM cards. The Esya Centre report surveyed 2,033 consumers across 18 cities and 353 businesses across 17 cities to investigate the effects of the order.

Consumer and Business Impact

The study found that 98.88% of surveyed consumers found losing messaging access due to an inactive SIM card to be an inconvenience, and 98% worried about losing internet access during emergencies. The mandate also poses problems for international travellers, as 67.1% use alternative modes of connectivity rather than Indian SIMs with international roaming. For businesses, 78% thought restricting phone access would be disruptive, and 83.5% expected operational delays and errors. The financial impact weighs heavily on MSMEs, with 76.3% anticipating high additional costs, 60.6% expecting workplace costs, 58.6% expecting device spending, and 55% expecting staff expenses.

Cybersecurity Concerns

While 87.2% of surveyed businesses worried about SIM fraud, 81% remained unconvinced that SIM binding works as a security measure. Similarly, 59% of consumers doubted the requirement would make messaging platforms safer. The researchers note that cybercriminals rely on phishing, social engineering, stolen credentials, and malware alongside SIM vulnerabilities. To bypass restrictions, 41% of consumers said they would get a second SIM card, and 30.3% said they would buy another device.

Context

Policy mandates aimed at digital security often have to balance stricter user verification with the practical needs of everyday communication and business operations. Think tanks like the Esya Centre frequently conduct empirical assessments to evaluate how proposed government regulations might affect economic costs and user experience before rules are fully finalized.