India's telecom authority notifies new network authorization rules

India's Department of Telecommunications (DoT) announced the Telecommunications (Authorisation for Telecommunication Network) Rules, 2026, on July 20. These rules, effective immediately, replace the previous licensing regime for network infrastructure and aim to enhance control over telecom networks and data.

The new regulations stipulate that all telecommunication network systems, along with associated data, logs, and information, must reside within India. No copies are permitted to be routed, shared, or made available outside the country. This requirement applies universally, including to the newly defined category of 'cloud-hosted telecommunication network providers'. Furthermore, remote access to these networks from abroad will require prior approval from the DoT, with specific conditions regarding its purpose, duration, and monitoring.

The rules establish six distinct types of authorisations for the infrastructure layer of India's telecom networks. These include infrastructure providers, digital connectivity infrastructure providers, internet exchange point (IXP) providers, satellite earth station gateway providers, cloud-hosted network providers, and mobile number portability (MNP) providers. Most authorisations involve nominal fees, except for MNP providers who face substantial entry and guarantee fees.

Notably, the rules do not impose website or URL blocking obligations on IXPs, diverging from recommendations by the Telecom Regulatory Authority of India (TRAI). Mobile number portability authorisations are financially significant, requiring both an upfront fee and an annual charge based on adjusted gross revenue (AGR).

These regulatory changes are expected to bolster data security and localization within India's telecom sector, establishing a new framework for network operations and provider responsibilities.