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Government bars communication infra providers from sharing data outside India

25 Jul 2026
2 min

Government Regulation on Telecommunication Infrastructure

Data Localization Requirement

  •  The government has mandated that all telecommunication data, including network logs and information, must be stored within India. 
  •  No copies of this data are allowed to be shared or routed outside the country. 
  •  This requirement is part of a shift from a licensing regime to light regulation as per the Telecommunications Act 2023. 

Authorization Framework

  •  The new framework allows entities like infrastructure providers, digital connectivity providers, and internet exchange point providers to seek authorization. 
  •  The government may inspect sites and audit processes for compliance, even without notice if deemed necessary for public interest. 

Designated Agency Role

  •  A designated agency will audit authorized entities but cannot collect information that harms competitive positions. 

Responsibility of Infrastructure Providers

  •  Infrastructure providers are responsible for obtaining permissions to roll out networks, and delays in obtaining permissions do not justify non-compliance. 

Industry Opinions

  •  Anupam Shrivastava of Submer India views the new rules as a major milestone for digital infrastructure, emphasizing data localization. 
  •  Bharat Bhatia from ITU-APT Foundation of India highlighted unresolved issues regarding spectrum assignment for gateway earth stations. 

 The introduction of the "Cloud-Hosted Telecommunication Network Provider" category aims to integrate cloud data centers with telecom networks, featuring a low entry fee of ₹10 Lakhs and no annual authorization fees. 

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RELATED TERMS

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Spectrum Assignment

The process by which the government allocates specific radio frequencies to entities for the operation of telecommunication services. In this context, it refers to allocating frequencies to satellite communication operators, with implications for service rollout and national security.

ITU-APT Foundation of India

A regional organization focused on telecommunications and broadcasting policies, standards, and regulations in the Asia-Pacific region. It plays a role in policy advocacy and harmonization within the industry.

Cloud-Hosted Telecommunication Network Provider

A new category of telecom service provider introduced under the updated framework. This category allows for the integration of cloud data centers with telecom networks, offering services with a defined entry fee and potentially no annual authorization charges.

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