JSA Prism | Telecommunications | August 2026

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Telecommunications (Authorisation for Telecommunication Network) Rules, 2026

On July 20, 2026, the Department of Telecommunications (“DoT”) notified the Telecommunications (Authorisation for Telecommunication Network) Rules, 2026 (“Network Authorisation Rules”) under the Telecommunications Act, 2023 (“Telecom Act”). The Network Authorisation Rules establish a comprehensive authorisation framework for entities seeking to establish, operate, maintain or expand specified telecommunication networks in India and form a key component of the migration from the erstwhile licensing regime under the Indian Telegraph Act, 1885 to the authorisation framework introduced under the Telecom Act. The Network Authorisation Rules set out eligibility criteria, application procedures, authorisation categories, operational and security obligations, fee structures, compliance requirements and enforcement mechanisms applicable to authorised entities.

Key provisions under the Network Authorisation Rules

Overview and scope

• The Network Authorisation Rules provide the terms and conditions governing authorisations for establishing, operating, maintaining or expanding telecommunication networks under the Telecom Act and apply both to new authorisations and to entities migrating to the new authorisation framework.
• These rules introduce distinct categories of network authorisations, including Infrastructure Provider, Digital Connectivity Infrastructure Provider, Internet Exchange Point Provider, Satellite Earth Station Gateway Provider, Cloud-Hosted Telecommunication Network Provider and Mobile Number Portability Provider.
• The Network Authorisation Rules govern authorisations for telecommunication networks and infrastructure and are distinct from the various authorisation frameworks applicable to the provision of telecommunications services, which are regulated separately under the Telecom Act and the various rules notified thereunder.

Eligibility and application framework

• Eligibility for authorisation is generally restricted to companies that comply with applicable foreign direct investment requirements, have a satisfactory track record in providing telecommunication services or operating telecommunication networks, and do not have any pending dues payable to the Government.
• Additional eligibility conditions have been prescribed for applicants seeking satellite earth station gateway authorisations and mobile number portability provider authorisations, including restrictions on cross-holdings and beneficial ownership in competing service providers.
• Applications are required to be submitted through the designated portal, together with the prescribed processing fee, supporting documentation and an auditor’s certificate confirming compliance with the eligibility criteria.
• Applicants holding overlapping licences or authorisations are generally required to surrender such authorisations as part of the migration to the new framework.

Grant and duration of authorisations

• The Central Government may undertake eligibility verification and issue a letter of intent specifying the conditions required to be satisfied for grant of authorisation, including payment of entry fees and submission of guarantees where applicable.
• Authorisations are granted on a non-exclusive basis and do not confer any right to spectrum assignment or use, which remains subject to separate legal and regulatory requirements.
• Most network authorisations may be granted for a period of up to 20 (twenty) years, while Mobile Number Portability Provider Authorisations may be granted for a period of up to 10 (ten) years.
• Authorised entities may apply for renewal of authorisations at least 12 (twelve) months prior to expiry, subject to payment of applicable fees and compliance with prevailing legal requirements.

Reporting, disclosure and corporate compliance obligations

• Authorised entities are required to submit annual disclosures relating to direct and indirect foreign ownership, control structure and continued compliance with eligibility requirements, supported by auditor certification.
• The Network Authorisation Rules require notification of material changes relating to shareholding, ownership, control, corporate information and other prescribed particulars within specified timelines.
• Authorised entities are also required to appoint a nodal officer responsible for furnishing information and coordinating with the Central Government and designated agencies.
• In the event of commencement of insolvency proceedings, the affected authorised entity is required to notify the Central Government within 48 (forty-eight) hours.

Operational and technical conditions

• Authorised entities may establish, operate, maintain and expand telecommunication networks using any technology, provided that all telecommunications equipment, identifiers and networks comply with applicable standards and conformity assessment requirements notified by the Central Government.
• The Network Authorisation Rules require synchronisation of network clocks with the national clock and compliance with government directions relating to network design, interoperability and operational standards.
• All network systems, data, logs and associated information relating to telecommunication networks are required to be stored within India, and copies of such information generally cannot be transferred or made available outside India.
• Entities must comply with government directions relating to disaster management, public safety, energy-efficient deployment of equipment, indigenous procurement initiatives and disposal of radio equipment.

Security and data governance framework

• The Network Authorisation Rules prescribe extensive security requirements, including a requirement that a majority of directors on the board of an authorised entity be Indian citizens and that key network, security and system administration roles be held by resident Indian citizens.
• Security clearance requirements apply to specified foreign nationals proposed to be appointed in senior management positions or deployed for network-related activities.
• Authorised entities are required to maintain detailed operational records, software update logs, supply chain information, command logs and audit trails and make such information available to the Government when required.
• The Network Authorisation Rules mandate compliance with the trusted source and trusted product framework and require procurement and deployment of specified telecommunications equipment only from approved sources and suppliers.
• Remote access to telecommunication networks from locations outside India is permitted only with prior approval of the Central Government and subject to detailed monitoring, audit and security safeguards.

Category-specific authorisations

• Infrastructure provider authorisations permit the establishment, operation and sharing of passive telecommunications infrastructure, rights of way and in-building solution infrastructure on a non-discriminatory basis.
• Digital connectivity infrastructure provider authorisations permit the creation and operation of wired terrestrial networks, radio access networks, wireless local area networks, transmission links and in-building solutions to support service providers, while restricting operation of core telecommunications networks.
• Internet exchange point provider authorisations permit interconnection and exchange of internet traffic between authorised entities and content delivery networks operating in India.
• Satellite earth station gateway provider authorisations permit the establishment and operation of gateway facilities and associated infrastructure relating to authorised satellite or space segment capacity.
• Cloud-hosted telecommunication network provider authorisations enable entities to establish and provide cloud-hosted telecommunication network infrastructure and network functionality as a service to authorised operators.
• Mobile number portability provider authorisations establish the framework for operation of mobile number portability networks and services within prescribed zonal areas.

Fees, financial obligations and guarantees

• The Network Authorisation Rules prescribe processing fees, entry fees and guarantee requirements for different categories of authorisations, with infrastructure provider and internet exchange point provider authorisations not attracting any entry fee requirement.
• Digital Connectivity Infrastructure Provider, Satellite Earth Station Gateway Provider and Cloud-Hosted Telecommunication Network Provider Authorisations are subject to an entry fee of INR 10,00,000 (Indian Rupees ten lakh), while Mobile Number Portability Provider Authorisations attract an entry fee of INR 50,00,000 (Indian Rupees fifty lakh) and an initial guarantee of INR 40,00,000 (Indian Rupees forty lakh);
• Mobile Number Portability Providers are additionally required to pay annual authorisation fees calculated as a percentage of adjusted gross revenue or a percentage of the applicable entry fee, whichever is higher.

Transfer, surrender and enforcement

• Authorisations may generally be transferred only with prior Government approval in connection with mergers, demergers, acquisitions, restructurings or enforcement of security interests.
• The Network Authorisation Rules establish procedures governing surrender, expiry and revocation of authorisations and require authorised entities to continue maintaining their telecommunication networks until the effective date of surrender, expiry or revocation.
• The Central Government is empowered to conduct inspections, audits and verifications of networks, systems and compliance procedures and may appoint designated agencies for this purpose;
• Breaches of the Network Authorisation Rules constitute breaches under Section 32 of the Telecom Act and may result in suspension, revocation or curtailment of the relevant authorisation following due process.

DoT notifies ‘Telecom eServices Portal’ for digital implementation of the Network Authorisation Rules

On July 20, 2026, the DoT notified the ‘Telecom eServices Portal’ as the designated portal for the digital implementation of the Network Authorisation Rules. The portal will serve as the primary interface for applications, filings, disclosures, reporting obligations and other compliance requirements prescribed under the Network Authorisation Rules, reinforcing the Government’s objective of implementing the new authorisation framework through a fully digital and centralised platform.

Conclusion

The Network Authorisation Rules represent a significant step in implementing the Telecom Act’s shift from a licence-based framework to a technology-neutral authorisation regime. By introducing dedicated authorisation categories for digital connectivity infrastructure, cloud-hosted telecommunications networks, satellite gateway operators and internet exchange providers, these rules seek to provide greater regulatory clarity, facilitate infrastructure led investment and support evolving network deployment models. At the same time, the framework places considerable emphasis on security, localisation, reporting and compliance obligations for authorised entities. The notification of the Telecom eServices Portal further underscores the Government’s focus on creating a centralised and digitally administered authorisation ecosystem for the telecommunications sector.

From an industry perspective, the Network Authorisation Rules are generally expected to be welcomed for providing long-awaited certainty on the authorisation framework and creating new opportunities for network infrastructure and cloud-based telecom business models. For data centre and cloud service providers, integrated colocation and cloud-network solutions may be offered to telecommunication operators under a Cloud-Hosted Telecommunication Network authorisation. However, the scope of the Cloud-Hosted Telecommunication Network authorisation does not expressly extend to conventional colocation services or hosting arrangements for non-telecommunications workloads, which would need to be evaluated separately from a regulatory perspective.

However, stakeholders are likely to closely assess the operational impact of the extensive compliance, security vetting, data localisation and reporting requirements, particularly for entities operating large-scale or globally integrated network platforms. Overall, the Network Authorisation Rules are viewed as a positive and important milestone in modernising India’s telecommunications regulatory framework, while implementation and compliance costs will remain key areas of industry focus.

This Prism has been prepared by:

Tony Verghese Partner

Radhika Gupta Partner

Uddhav Gupta Associate

For more details, please contact km@jsalaw.com.