Summary:
The Central Government has introduced the Telecommunications (Authorisation for Telecommunication Network) Rules, 2026, requiring all telecom network data, logs, and related information to be stored exclusively within India and prohibiting their transfer or sharing outside the country. The new framework, issued by the DoT under the Telecommunications Act, 2023, also grants the government enhanced compliance oversight through audits and inspections while placing full responsibility for network rollout approvals on infrastructure providers. Industry experts believe the data localisation mandate will boost domestic data centre investments and strengthen India’s data sovereignty, though concerns remain over the absence of spectrum allocation provisions for private satellite gateway operators.
The Central Government has introduced new rules requiring all telecommunication network data, logs, and associated information managed by communication infrastructure providers to remain within India. Under the newly notified Telecommunications (Authorisation for Telecommunication Network) Rules, 2026, such data cannot be transferred, routed, or shared outside the country.
As part of the shift from the previous licensing regime to a simplified authorisation framework under the Telecommunications Act, 2023, the Department of Telecommunications (DoT) has released fresh guidelines covering communication infrastructure providers. These include cloud-hosted telecom network operators, mobile tower companies, satellite earth station gateway providers, internet exchange operators, and mobile number portability service providers.
According to the notification issued on July 20, every newly authorised entity must ensure that its telecommunication network systems, along with all related data, logs, and information, are stored exclusively within India. The rules further prohibit creating copies of such information outside the country or making it accessible beyond India’s borders.
The new regulatory framework also provides the Central Government with extensive oversight powers to verify compliance. Authorities may inspect telecom infrastructure sites, including locations where equipment is installed and even user premises, review operational systems and compliance mechanisms, and, when considered necessary in the public interest, conduct inspections without prior notice.
To facilitate regulatory oversight, the government may appoint a designated agency to audit the systems and processes maintained by authorised entities. However, the notification makes it clear that these agencies must not request or disclose information that could adversely affect the competitive interests of the authorised entities or their customers.
The regulations additionally place full responsibility for obtaining permissions required for network deployment on the infrastructure providers themselves. Any delay in securing right-of-way approvals will not be considered a valid reason for failing to meet obligations under the rules.
“The non-availability of right of way or delays in obtaining right of way permission by the new authorised entity shall not be a cause or ground for non-compliance with any obligations under these rules,” the framework states.
Industry observers believe the revised framework could accelerate growth in India’s data centre sector while reinforcing the country’s data sovereignty objectives.
Anupam Shrivastava, Head of Submer India and former Chairman and Managing Director of BSNL, described the policy as an important milestone for India’s digital infrastructure.
“Having previously led traditional telecom infrastructure at BSNL and now working on sustainable data centre solutions at Submer, I believe this framework represents a significant move towards a more secure, cloud-enabled, and environmentally sustainable digital future,” he said.
Shrivastava added that the mandatory localisation of telecom data is expected to stimulate substantial investment in domestic infrastructure.
“This policy is likely to create strong demand for data centres within India. Additionally, the introduction of the ‘Cloud-Hosted Telecommunication Network Provider’ category—with an entry fee of Rs 10 lakh and no recurring annual authorisation fee—will help integrate cloud data centres with telecom networks and make digital infrastructure more accessible,” he said.
Meanwhile, Bharat Bhatia, President of the ITU-APT Foundation of India, welcomed the detailed authorisation framework but highlighted that spectrum allocation for private satellite gateway operators remains unresolved.
He noted that the present notification does not permit authorised entities to apply for spectrum, which is essential for operating satellite gateways. While ISRO currently manages gateway operations using allocated spectrum, private operators could face a competitive disadvantage until the issue is addressed. He added that TRAI is currently consulting on the matter and expressed hope that the regulator’s forthcoming recommendations would provide a solution.
