Government Prohibits Telecom Infrastructure Providers from Transferring Data Outside India

New Delhi, July 24: The Centre has introduced stringent data localisation requirements for communication infrastructure providers, making it mandatory for all telecom network related data, logs and information to be stored exclusively within India. Under the newly notified Telecommunications (Authorisation for Telecommunication Network) Rules, 2026, companies will no longer be permitted to route, share or make copies of telecom network data available outside the country.

The notification, issued by the Department of Telecommunications (DoT), is part of the government’s broader effort to modernise India’s telecom regulatory framework under the Telecommunications Act, 2023. The new rules replace the traditional licensing model with an authorisation based system designed to simplify business operations while strengthening national security and data protection.

According to the notification, every new authorised entity must ensure that all systems connected to its telecommunication network, along with associated data, logs and operational information, remain physically stored within India. The regulation prohibits companies from transferring or maintaining copies of such information on servers located abroad.

The revised framework applies to a wide range of communication infrastructure providers, including telecom infrastructure companies, cloud-hosted telecommunication network providers, mobile tower operators, internet exchange point providers, satellite earth station gateways, digital connectivity infrastructure providers and national level mobile number portability service providers.

Government officials said the move is aimed at reinforcing India’s digital sovereignty by ensuring sensitive telecom infrastructure data remains under domestic jurisdiction. Authorities believe the policy will improve cybersecurity, strengthen regulatory oversight and reduce risks associated with cross-border data transfers.

The rules also grant the government expanded powers to monitor compliance. Officials may inspect telecom sites, examine network infrastructure and audit systems established by authorised entities to verify adherence to the regulations. In situations considered necessary in the public interest, inspections may be conducted without prior notice.

To support enforcement, the Centre may appoint a designated agency to carry out compliance audits. The notification clarifies that while such agencies can inspect systems and operational processes, they will not collect or disclose commercially sensitive information that could affect the competitive position of telecom operators or their customers.

Another significant provision places the responsibility for securing permissions required for network deployment entirely on service providers. Companies will be expected to meet all regulatory obligations even if approvals such as right-of-way permissions are delayed by local authorities.

The notification specifically states that delays in obtaining right-of-way approvals cannot be cited as grounds for failing to comply with regulatory requirements. Industry participants will therefore need to plan network expansion projects while ensuring full compliance with the new framework.

Industry experts believe the mandatory localisation of telecom data will substantially increase demand for domestic data centre infrastructure. Anupam Shrivastava, Head of Submer India and former Chairman and Managing Director of BSNL, described the policy as a landmark step in strengthening India’s digital infrastructure.

He said the government’s clear emphasis on storing all telecom systems and related data within India would encourage greater investment in local data centres while improving network security and operational resilience.

Shrivastava also highlighted the introduction of a new category for Cloud-Hosted Telecommunication Network Providers, which features a relatively low entry fee of ₹10 lakh and no recurring annual authorisation charges. According to him, the move is expected to accelerate the integration of cloud technologies into India’s telecom ecosystem while lowering barriers for new market entrants.

Industry observers believe the new framework could encourage greater adoption of cloud-based telecom services and support the expansion of digital infrastructure across the country. Increased investment in domestic cloud facilities is also expected to create opportunities for technology providers and data centre operators.

While welcoming the overall reforms, some experts pointed to unresolved issues surrounding satellite communication infrastructure. Bharat Bhatia, President of the ITU-APT Foundation of India, praised the Department of Telecommunications for issuing comprehensive authorisation guidelines but noted that spectrum allocation for private satellite gateway operators remains pending.

He observed that the present framework does not allow newly authorised gateway operators to directly obtain spectrum, an essential requirement for operating satellite gateway stations. Currently, gateway spectrum is primarily allocated through ISRO, placing private operators at a potential disadvantage.

Bhatia expressed hope that the Telecom Regulatory Authority of India (TRAI), which is currently consulting stakeholders on satellite spectrum allocation, would address the issue in its forthcoming recommendations.

The new authorisation framework marks another major step in India’s telecom reforms by combining simplified regulatory procedures with stricter security standards. As telecom networks increasingly rely on cloud computing, digital infrastructure and advanced connectivity technologies, the government aims to ensure that critical communications data remains securely housed within the country while supporting future growth of the sector.