New Telecom Rules Mandate Data Localisation, Ban Export of Network Data

The Indian government has issued new rules barring communication infrastructure providers from sharing any data outside the country, according to an official notification from the Department of Telecom (DoT). The regulations, part of the authorisation framework under the Telecommunications Act 2023, require that all telecommunication data, logs, and information be stored exclusively within India.

The notification, dated July 20, states: “Every new authorised entity shall ensure that all systems of its telecommunication network and the data, logs and information associated with its telecommunication network shall be stored within India and no copies of such data, logs and information shall be routed, shared or made available outside India.”

The authorisation framework covers a range of entities, including infrastructure providers, digital connectivity infrastructure providers, internet exchange point providers, satellite earth station gateways, cloud-hosted telecommunication network providers, and mobile number portability providers at the national level.

Under the new norms, the government may access and inspect sites where telecommunication equipment and networks are established, including within user premises, to monitor compliance. It may also audit processes or systems and take immediate action without notice if deemed necessary in public interest. A designated agency may be appointed to conduct audits, but the notification specifies that the agency will not collect or require disclosure of information that could harm the competitive position of any user or authorised entity.

Infrastructure providers under the new framework are solely responsible for obtaining network rollout permissions, and delays in right-of-way approvals will not excuse non-compliance with the rules.

Industry experts have commented on the implications. Anupam Shrivastava, head of data centre company Submer India and former BSNL chairman, called the framework a transformative milestone for national digital infrastructure. He noted that the strict data localisation mandate will trigger a massive surge in domestic data centre demand, and the introduction of a 'Cloud-Hosted Telecommunication Network Provider' category with a low entry fee of ₹10 lakhs and zero annual fee will democratise infrastructure.

Bharat Bhatia, President of ITU-APT Foundation of India, commended the detailed guidelines but flagged that the issue of spectrum assignment for gateway earth stations remains unresolved.