RCS messaging caught in regulatory gray

The government’s SIM binding mandate has renewed regulatory uncertainty over rich messaging service (RCS) channels. This is especially so in the case of whether RCS should be treated as an over-the-top (OTT) or a telecom network service from a regulatory lens.Technically, RCS is not bound to the SIM and can be used without it, just like WhatsApp. However, it is also a GSMA-defined protocol adopted by all three private telecom operators in the country in partnership with Google.The Department of Telecommunications (DoT) recently mandated continuous SIM binding for messaging apps such as WhatsApp, Telegram, and Signal, requiring them to verify that the original registered SIM remains active in the device and enforcing automatic six-hour logouts for web/desktop sessions effective February.While the rule may force platforms like WhatsApp to rethink compliance, it has exposed RCS’ arbitrary status, according to experts.“DoT’s SIM-binding direction is framed considering the application services using an Indian mobile number for user identification,” said Sanjeev Kumar, partner at law firm Luthra & Luthra.“While the direction regarding SIM binding is welcoming in so far a user’s cyber-security is concerned, RCS implementation by telecommunication channels rely on SIM-linked identifiers together with internet based communications which the DoT direction does not take into account,” he said. “Absence of such policy decision calls for classification of RCS in forthcoming directions considering the sensitivity of the issue”.WhatsApp and Google RCS are currently the dominant OTT channels, gaining traction as rich mediums for enterprise communication. Mordor Intelligence estimates India’s communication-platform-as-a-service (CPaaS) market to grow to $3.06 billion by 2030, from an estimated $1.01 billion in 2025.Both WhatsApp and Google RCS are set to reach a combined market of $1.6 billion and capture 50% of value share of India’s commercial messaging market, according to Gartner analysis. A joint report by Omdia and Infobip projects RCS alone to account for $544 million in revenue by 2029, generated from 21 billion messages from India. This would mark a quarter of RCS revenues in Asia and Oceania. ET reported earlier this month that all the three private telcos Reliance Jio, Bharti Airtel, and Vodafone Idea have onboarded Google’s Jive platform which enables RCS.The telcos are shortly expected to negotiate interconnect usage charges (IUC) for RCS messaging, an area that has historically fallen under the telecom regulator’s oversight. The evolving structure is likely to test existing telecom and OTT regulatory boundaries once again.Google and Cellular Operators Association of India (COAI) did not respond to ET’s queries.COAI counts the private telcos Jio, Airtel, and Vodafone Idea as its members.“At present, the discussion papers of TRAI highlight the developing trends and advantages of RCS messages. However, these discussion papers do not consider the ongoing challenges pertaining to commercial discussions by telecom operators,” said Kumar. “There is a clear and immediate need for TRAI to regulate to ensure parity with existing messaging channels and to provide certainty for industry stakeholders who are now entering commercial negotiations without a defined policy baseline,” he said.