What is DLT Registration? Why It Is Required For SMS Service In India?

Codezeros
4 min readFeb 18, 2022

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DLT or Distributed Ledger Technology is a registration system that is formulated on Blockchain. According to the Telecom Regulatory Authority of India or TRAI, the telemarketers need to get registered in DLT. It is done for controlling SMS spam from several firms. Previously, it was a must for the bulk SMS providers to opt for TRAI registration.

However, according to the updated rules, the individuals wanting to send transactional or promotional SMS to their clients need to get registered in DLT.

Distributed Ledger Technology
What is DLT Registration? Why It Is Required For SMS Service In India?

What is DLT?

It is a platform that stores records of every transaction done by the network participants. According to the new regulations of TRAI, it is a must for the communication messages such as notifications, verification codes, OTP, and others sent by the businesses to their clients need to register in TRAI DLT platform.

Various phrases are there for implementing the regulation that mandated making use of Distributed Ledger Technology. The DLT system has already been implemented by the majority of the telecom operators.

The goal is to increase transparency and reduce the incidence of fraud and spam offered through SMS.

New TRAI rules for bulk SMS

For preventing customers from unwanted commercial communication, the rules for the enterprises and telemarketers have been revised by TRAI in India for the bulk SMS service.

Guidelines have been formulated for improving control and preventing fraudulent practice. Also, it offers better safety to the end customers.

The companies wanting to send transactional or promotional messages to the customers need to get registered with the telecom operators.

The companies will become accountable to the telecom operators, who in turn will be accountable directly to TRAI.

The DLT blockchain mechanism is used for governing the system, and the overall panel entities will stay interlinked with one another. Several entities are involved in the commercial communication ecosystem. They are as follows:

Principal entity:

It is the organization sending SMS to their clients. It can be a partnership firm, individual, or any government and private entity.

According to the new regulations, all these entities need to get registered with telecom operators present in DLT.

End customer:

This is the mobile subscriber who will get SMS. The person can give consent for receiving promotional SMS from any of the businesses. They can register complaints, set preferences, and unsubscribe at any time according to the TRAI rules.

Service provider:

The bulk SMS service providers offer this service to companies or organizations. All of the service providers need to get registered on DLT for sending messages on the principal entity’s behalf.

Telecom operators:

They are the access providers who will be connected directly to TRAI and contribute to the process of regulation. For example, Airtel, Vodafone, BSNL, Idea, and more.

Regulator:

The regulator or TRAI has established regulatory compliance. The operations are audited and governed by TRAI for safeguarding the interests of the customers and for preventing fraudulent practices.

As an enterprise or telemarketer, opt for registration:

You are allowed to register as an enterprise or telemarketer in DLT. If you are dealing with the customers and using SMS for communicating with them, then you are most likely to be a telemarketer.

There are two types of telemarketers. They are:

  • Telemarketer delivery: The voice traffic or SMS is collected by it from the enterprise and is directly connected to the telecom operators.
  • Telemarketer aggregator: It can be a company or an individual and is not directly connected to the telecom operator.

For several companies, telemarketers are the primary source for sales. Outbound sales are the main kind of telemarketing. The businesses here need to use voice or SMS to connect with their customers.

Thus, the telemarketer must register in the DLT platform for sending transactional and promotional messages.

Enterprises are referred to as the businesses dealing with services or products that will connect them to their leads via SMS for increasing their sales.

If you want to communicate with your customers through SMS, you need to opt for DLT integration to register your business as an enterprise.

Customer benefits of DLT registration:

The benefits of the customers are:

  • DLT implementation and integration eliminate frauds and spam.
  • Blockchain technology keeps security intact.
  • Separate registration for enterprises and telemarketers offers better transparency.
  • Before sending SMS, customer consent is necessary, and the customers can even choose the slot timing.

Enterprise benefits of DLT registration:

The benefits of DLT implementation on enterprises are:

  • They will get more target outreach to their prospects.
  • All templates and headers get registered on it.
  • It facilitates improved communication with the prospects wanting to get information.
  • It Enhances marketing practices for reaching the target audience.

Conclusion:

The telecom operators have enforced the TRAI regulations, and no one can push back this implementation. If any sender name is found from the portals of DLT, the telecom operators will block the SMS. It is high time that businesses must get registered with DLT for running various SMS marketing campaigns to communicate with their leads and expand the business. You can opt for DLT creation services to get more help on this registration process.

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