New Telecom Act Takes Effect: Simpler Rules, Greater Government Powers
The Telecommunications Act, 2023, has come into force with the notification of a set of rules earlier this month. These include the Telecommunications (Authorisation for Provision of Principal Telecommunication Services) Rules, 2026; the Telecommunications (Authorisation for Captive Telecommunication Services) Rules, 2026; and the Telecommunications (Authorisation for Provision of Miscellaneous Telecommunication Services) Rules, 2026.
The primary objective of the Act is to simplify and consolidate older laws, particularly the Indian Telegraph Act of 1885 and the Wireless Telegraphy Act of 1933, which it replaces. While the operational changes for India's telecom ecosystem are limited in the short term, the new legislation introduces several notable provisions.
The Act grants the Union government expanded powers. It includes a broad definition of “telecommunication” that could allow regulation of messaging apps. Last year, the Department of Telecommunications (DoT) attempted to force WhatsApp to log out users from web instances every six hours and link every user to a SIM as an anti-spam measure, though the government initially denied such intent.
Parts of the Act were notified earlier. In 2024, the government renamed the Universal Service Obligation Fund—used to fund telecom infrastructure in remote areas—to the Digital Bharat Nidhi. Another provision allowed the government to seize telecom infrastructure on grounds of national security or war.
Interception rules have also been updated. Despite pushback from industry and civil society, the government retained the authority of senior officials to issue phone and internet tapping orders.
The latest rules replace the licensing framework for telecom operators with an “authorisation” regime, simplifying paperwork for telecom companies and internet service providers (ISPs). The rules also add anti-spam enforcement as an obligation under the Act.
The new law recognises satellite internet, but the final rules removed explicit references to Global Mobile Personal Communications by Satellite (GMPCS), as noted by law firm Khaitan & Co. This development comes as Starlink, the world's largest satellite internet provider, awaits approvals to launch in India. Reports suggest the government is concerned about its ability to shut off such services, given their use in countries like Iran in defiance of local authorities.
Telcos and ISPs can choose to migrate to the new authorisation regime immediately or wait until their existing licences expire and then apply afresh. However, Khaitan & Co cautioned that “a significant volume of operational detail is still awaited,” including the ‘sound’ track-record criterion, exemption thresholds, and technical directions.
