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Directive affects Apple ( AAPL ), Samsung, Vivo, Oppo, Xiaomi ( XIACF )

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Government says app combats cyber security threats

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Industry concerned over lack of prior consultation

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India has more than 1.2 billion telecom users

(Adds data on smartphones, expert comment; paragraphs 7,9-10)

By Aditya Kalra and Munsif Vengattil

BENGALURU, Dec 1 (Reuters) - India's telecoms ministry

has privately asked smartphone makers to preload all new devices

with a state-owned cyber security app that cannot be deleted, a

government order showed, a move likely to antagonise Apple ( AAPL ) and

privacy advocates.

India is one of the world's largest telephone markets, with

more than 1.2 billion subscribers, and government figures show

the app, launched in January, has helped recover more than

700,000 lost phones, including 50,000 in October alone.

Apple ( AAPL ), which has previously locked horns with the

telecoms regulator over development of a government anti-spam

mobile app, is among the companies, such as Samsung,

Vivo, Oppo and Xiaomi ( XIACF ) bound by the new order.

The November 28 order, seen by Reuters, gives major

smartphone companies 90 days to ensure that the government's

Sanchar Saathi app is pre-installed on new mobile phones, with a

provision that users cannot disable it.

For devices already in the supply chain, manufacturers

should push the app to phones via software updates, the ministry

said in its order, which was not made public and was sent

privately to select companies.

The government said the app was essential to combat "serious

endangerment" of telecom cyber security from duplicate or

spoofed IMEI numbers, which enable scams and network misuse.

Apple's ( AAPL ) iOS powered an estimated 4.5% of 735 million

smartphones in India by mid-2025, with the rest using Android,

Counterpoint Research says.

TELECOM CYBER SECURITY

While Apple ( AAPL ) pre-installs its own proprietary apps on phones,

its internal policies prohibit installation of any government or

third-party app before sale of a smartphone, a source with

direct knowledge of the matter said.

"Apple ( AAPL ) has historically refused such requests from

governments," said Tarun Pathak, a research director at

Counterpoint.

"It's likely to seek a middle ground: instead of a mandatory

pre-install, they might negotiate and ask for an option to nudge

users towards installing the app."

Apple ( AAPL ), Google, Samsung and Xiaomi ( XIACF ) did not respond to

requests for comment. India's telecoms ministry also did not

respond.

A 14- to 17-digit number unique to each handset, the IMEI,

or International Mobile Equipment Identity, is most commonly

used to cut off network access for phones reported to have been

stolen.

The government app allows users to report suspicious calls,

verify IMEIs and block stolen devices through a central

registry.

With more than 5 million downloads since its launch, the app

has helped block more than 3.7 million stolen or lost mobile

phones, while more than 30 million fraudulent connections have

also been terminated.

The government says it helps prevent cyber threats and

assists tracking and blocking of lost or stolen phones, helping

police to trace devices, while keeping counterfeits out of the

black market.