NEW DELHI — In a major regulatory shift under the Telecommunications Act 2023, the Department of Telecommunications (DoT) has barred communication infrastructure providers from sharing, routing, or storing telecommunication data outside India.

According to the Telecommunications (Authorisation for Telecommunication Network) Rules, 2026 notification released on July 20, all network data, logs, and associated information must reside exclusively within national borders. The mandatory data localisation policy applies to cloud-hosted networks, mobile towers, satellite earth station gateways, internet exchange point providers, and mobile number portability services.

Oversight & Compliance Provisions

Under the new light-regulation framework—which replaces traditional licensing—the government reserves the right to inspect equipment sites, audit security systems, and access user premises. In urgent situations where public interest demands it, compliance audits may take place without prior notice.

The DoT also clarified that infrastructure providers are fully responsible for acquiring network permissions, explicitly stating that right-of-way delays will not excuse non-compliance.

Industry Experts React

Industry leaders have largely welcomed the shift while noting key operational challenges:

  • Boost for Data Infrastructure: Anupam Shrivastava, former BSNL Chairman and current head of Submer India, described the rules as a "transformative milestone." He noted that strict data residency will drive massive growth in domestic data centres, while low entry barriers for cloud-hosted network providers (₹10 lakh entry fee, zero annual authorization fee) will help democratize digital infrastructure.

  • Spectrum Allocation Gap: Bharat Bhatia, President of the ITU-APT Foundation of India, commended the guidelines but pointed out an unresolved bottleneck: gateway earth station providers cannot yet apply for necessary spectrum. While ISRO currently operates gateways with allocated spectrum, private players await TRAI's upcoming recommendations to resolve the assignment issue.