Data Localisation in India: Telecom Rules, Benefits & Legal Framework

Subject: GS 02: Polity and Governance

Context: Recently, the Department of Telecommunications mandated strict data localisation for communication infrastructure providers to strengthen digital sovereignty and telecom security.

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About Data Localisation

• Data localisation is a legal requirement that digital data, especially personal, financial, or sensitive information must be collected, processed, and stored within the borders of the country where it is generated.
  • It restricts moving this data across national boundaries.
• Mandatory Data Localisation: New authorised entities must store all telecommunication network systems, data, logs and associated information within India, with no copies routed, shared or made available abroad.
• Entities Covered: The framework covers cloud-hosted telecom network providers, mobile tower operators, satellite earth-station gateways, digital connectivity infrastructure providers, Internet Exchange Point providers and national MNP providers.
• Government Inspection Powers: The Central Government can inspect telecom equipment and network sites, including within user premises, and may conduct audits without prior notice where immediate action is considered necessary in public interest.

Legal Backing

• Telecommunications Act, 2023: The framework derives its legal basis from the Telecommunications Act, 2023, which replaced the earlier licensing framework with an authorisation-based regulatory system.
• Authorisation Framework: The new framework seeks to facilitate a transition towards light-touch regulation and easier market entry, while imposing stringent obligations relating to data security and national interest.
• Right of Way Compliance: Authorised entities remain responsible for obtaining necessary permissions for network rollout; delays in Right of Way (RoW) permissions cannot justify non-compliance.
  • Right of Way (RoW) is the legal permission granted to telecom service providers to lay, install, operate, maintain and repair telecommunication infrastructure over, under or through public and private property under the Telecommunications Act and Telecommunications (Right of Way) Rules.
• Compliance Audits: The Centre may appoint a designated agency to audit the processes and systems of authorised entities for regulatory compliance.
• Spectrum Issue: The framework does not itself permit authorised entities to apply for spectrum. The allocation of gateway spectrum for satellite communication remains a key issue for private operators.

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