DoT Slashes Security Test Evaluation Fees by Up to 95% to Boost Ease of Doing Business in Telecom Sector

DoT’s Game-Changing Move: Security Certification Fees Slashed by Up to 95% to Boost Telecom Sector Growth

In a landmark move aimed at boosting domestic manufacturing and reducing the compliance burden for telecom and ICT companies, the Department of Telecommunications (DoT) has announced a massive reduction in security test evaluation fees—by up to 95%. This move, effective August 1, 2025, is part of the government's broader thrust toward ease of doing business, especially for Indian MSMEs, startups, and public sector R&D institutions.

The changes come under the Communication Security Certification Scheme (ComSec) and align with the government’s ongoing vision to make India a global hub for secure telecom manufacturing.

New Fee Structure: Drastic Reductions for All Categories

Prior to this revision, telecom and ICT equipment manufacturers had to bear a considerable financial burden ranging from ₹2,00,000 to ₹3,50,000 per product category. However, the revised fee structure significantly cuts down these costs across the board:

These groups include a wide array of telecom and ICT products such as routers, mobile core equipment, base stations, SIM cards, satellite communication devices, Wi-Fi CPEs, transport equipment, and more.

A Boon for MSMEs and Public R&D Institutions

Recognizing the critical role of innovation in public sector research, the DoT has completely waived security evaluation fees for Government R&D institutions like C-DOT and CDAC. This exemption will apply for all applications submitted up to March 31, 2028.

For the MSME sector, which often struggles with the financial implications of mandatory compliance, this reduction offers a critical cost advantage. With India’s MSME base playing an increasingly active role in the electronics and telecom equipment space, the policy offers a direct shot in the arm for domestic innovation and competitiveness.

Simplified Compliance for Specialized and Legacy Equipment

The DoT has also simplified the compliance requirements for Highly Specialized Equipment (HSE) and End-of-Life (EOL) or End-of-Sale (EOS) telecom products. This includes flexibility in testing protocols and fast-tracked approvals—measures that are expected to ease challenges faced by OEMs, importers, and system integrators dealing with global supply chains or aging inventories.

Furthermore, while security testing is mandatory for products like IP Routers, Wi-Fi CPEs, and 5G Core SMF, optical line terminals (OLTs) and optical network terminals (ONTs) have been placed under voluntary certification. The security test fee exemptions for these voluntary categories will remain in place until August 31, 2025.

Streamlined Online Process and Centralized Oversight

Manufacturers can now submit their applications and make payments online through the MTCTE portal at https://mtcte.tec.gov.in. This digital-first approach enhances transparency, efficiency, and accessibility, particularly for startups and small enterprises operating across different parts of India.

The National Centre for Communication Security (NCCS), an arm of the DoT, has been tasked with the implementation of these security testing and certification mechanisms. The NCCS will ensure that all procedures adhere to international best practices while maintaining a stringent oversight on the security integrity of telecom networks.

Mandatory Testing Still Applies — But Now with a Growth Mindset

Under the broader Mandatory Testing and Certification of Telecom Equipment (MTCTE) regime, all Original Equipment Manufacturers (OEMs), importers, and dealers are required to get their products tested before being sold, imported, or used in India.

This testing framework was first introduced in September 2017 and has now been formalized through the Telecommunications (Framework to Notify Standards, Conformity Assessment, and Certification) Rules, 2025. The revised ComSec scheme continues to categorize products into four groups (A-D) based on complexity and the testing time required.

Strategic Vision: Aligning with Global Standards

The DoT’s latest policy update is more than just a cost-reduction initiative—it represents a strategic pivot to align India’s telecom security framework with global standards. By fostering a culture of affordability and innovation, the scheme is designed to promote safe, secure, and scalable telecom infrastructure—a cornerstone of India’s digital future.

This will not only facilitate greater participation by Indian companies in global value chains, but also attract foreign OEMs looking to enter India’s growing telecom market under transparent and predictable compliance norms.

Industry-Wide Benefits: What Stakeholders Stand to Gain

1. MSMEs and Domestic Startups

• Lower entry barriers

• Cost-effective compliance

• Easier access to global telecom markets

2. Government R&D Institutions

• Zero certification costs till FY 2027-28

• Incentivized to accelerate public-led innovation

3. Global OEMs and Importers

• Streamlined digital processes

• Faster market entry timelines

• Transparent fee structures

4. Consumers and National Infrastructure

• More secure and standardized telecom products

• Increased availability of certified equipment

• Reinforced trust in telecom networks

The Road Ahead: Securing India’s Digital Growth

The latest move from DoT reflects India’s maturing digital economy, where security, ease of doing business, and innovation must go hand-in-hand. By drastically reducing the financial barriers to product certification, the government has sent a clear message—it wants more domestic players, more innovation, and globally competitive standards.

As India gears up to expand 5G networks, AI-driven smart devices, and IoT ecosystems, such regulatory steps will be critical in ensuring that telecom security doesn't become a bottleneck—but rather, a catalyst for growth.

Reference:

Department of Telecommunications, Ministry of Communications, Government of India.
For more information: https://mtcte.tec.gov.in