Mobile operators in the country can save over Rs 1,000 crore every year provided they use Aadhaar authentication to verify identity and address of their subscribers, according to a study by the Unique Identification of Authority of India (UIDAI).10,000,000,000.00 INR = 193,906,940.43 USD
Spending on mobile subscriber verification has been a major issue in India. On average, telecom operators add 10 to 12 million subscribers every month. In 2010, telecom operators said verification norms increased the cost for operators to register new subscribers.
Aadhaar for instant cellphone activation (Hindustan Times)
This is where the savings come in. There's a fine for businesses that don't follow the ID verification rules before issuing a mobile phone. But, it seems that even the large size of the fine isn't enough to dissuade the mobile companies from issuing phones even if they have to cut a few ID corners in the process. That points to the fact that a large section of their market can't prove their identity with enough certainty to satisfy current regulations.
The telecom companies don't activate a new mobile connection without verification of the proof of residence and proof of identity documents because of security reasons. It may lead to people not having a proof of residence being denied mobile phone connections.
"The objectives of inclusion and security can be mutually exclusive at times," said a Unique Identification Authority of India (UIDAI) paper on Leveraging Aadhaar in Telecom sector.
It has resulted in improper use of documents to get mobile connections. The Department of Telecom reported that in 2010-11, a penalty of Rs. 700 crore was imposed on telecom operators related to subscriber verification.