Centre Notifies New Telecom Rules, Ushering in Authorisation-Based Digital Framework

India’s telecom sector has entered a major new phase with the Centre notifying rules that operationalise an authorisation-based framework under the Telecom Act. The move marks a significant regulatory transition from the decades-old licensing structure to a more streamlined, digital and future-ready system for telecom service providers.

The government has also notified the Telecom eServices Portal, which will serve as the digital platform for implementing key provisions of the Telecom Act. The portal is expected to make applications, approvals, permissions and compliance processes more transparent and efficient for industry participants.

Among the key notifications is the Telecommunications (Authorisation for Provision of Main Telecommunication Services) Rules, 2025. These rules create a new framework under which telecom entities can apply for authorisation to provide services as a network service operator, a virtual network operator, or both. Existing Unified Licence, UASL, ISP, NLD and ILD licensees will also be able to migrate to the new system.

The draft rules were earlier published on September 5, 2025, for public consultation. Stakeholders were invited to submit objections and suggestions, and the consultation window was later extended till October 21, 2025. The Department of Telecommunications has stated that the comments and suggestions received during the consultation period were considered before finalising the rules.

Under the new framework, eligible entities can apply to the Central Government for authorisation to provide one or more telecom services within the specified scope and service area. These include unified service authorisation for a national service area, access service authorisation for one or more service areas, wireline access service authorisation, internet service authorisation, and long-distance service authorisation.

The rules also lay down a structured process for satellite-based telecom services. Any authorised entity planning to establish, operate, maintain or expand a satellite network, or provide telecom services through a satellite network, will have to seek separate permission from the Central Government through the portal. The application will require details of satellite capacity, space segment arrangements, satellite earth station gateways, gateway locations and other technical information sought by the government.

A major feature of the satellite communication rules is the requirement that satellite earth station gateways linked to Indian users must be located in India. All traffic on satellite networks originating from or terminating at user terminals in India will have to pass through the authorised entity’s satellite gateway located within the country. Real-time traffic monitoring facilities will also have to be provided to ensure regulatory and security compliance.

The rules place strong emphasis on data security and national digital sovereignty. Authorised telecom entities will have to ensure that data, logs and information associated with their telecom networks are stored within India. Network-related details, including the location of telecom systems, will also have to be provided to the Central Government whenever directed.

The framework further introduces additional safeguards for telecom network expansion in security-sensitive areas. Authorised entities will have to seek prior approval through the portal before establishing or expanding networks in areas specified by the government.

The rules also provide for lawful interception and monitoring systems in line with government directions. Entities providing access services, internet services, international long-distance services, or gateway facilities will have to establish and operate interception and monitoring facilities as required under the legal framework.

The notification of these rules is an important step in modernising India’s telecom governance. By replacing a complex licensing structure with a clearer authorisation-based system, the government is creating a more predictable environment for telecom operators, internet service providers, virtual network operators and satellite communication companies.

The new regime is also aligned with India’s larger digital ambitions. It supports ease of doing business, strengthens national security safeguards, enables better regulatory oversight and prepares the telecom sector for the next generation of services, including satellite broadband, advanced data networks and digital connectivity expansion.

As India moves deeper into the era of 5G, satellite communication, digital services and data-driven infrastructure, the new telecom rules provide a stronger foundation for investment, innovation and secure connectivity. The authorisation-based framework is expected to make the sector more agile, transparent and aligned with the country’s long-term digital growth strategy.