Center Overhauls Telecom Regulations Under New Regulations
The Center concluded a significant stage of implementing the Telecommunications Act, 2023, by releasing a series of notifications that transform the long-standing licensing system into a new authorization-focused framework for telecom services.
The Gazette notifications implement important elements of Section 3 of the Act, activate the Telecommunications (Authorisation) Rules, 2025, and establish the process for transitioning current licence holders to the new system.
Collectively, they signify the official shift from the licence-focused framework established by the Indian Telegraph Act of 1885 to a more efficient authorisation process outlined in the new legislation.
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Under the updated framework, telecom companies and service providers will be regulated through service-specific authorizations granted by the Department of Telecommunications (DoT), allowing current license holders to transition to the new structure while maintaining operational continuity.
The government has characterized the changes as a step to streamline regulation, enhance business efficiency, and establish a technology-neutral framework that can adapt to new communications services. The notifications together establish the legal basis for enforcing the Telecommunications Act and indicate the initiation of a thorough reorganization of India's telecom regulatory framework.
For example, in the Telecommunications (Authorisation for Provision of Principal Telecommunication Services) Rules, 2026, the DoT stated that all authorisations issued under these regulations will be non-exclusive, and the Centre may grant further authorisations for the same principal telecommunication services within the same or different service areas without limitations on the number of newly authorised entities.
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It was also mentioned that any application submitted for a license or letter of intent (LoI) for a license, which could have been granted under the Indian Telegraph Act, 1885 (13 of 1885), before the commencement of these rules, will expire if the license under the Indian Telegraph Act, 1885 (13 of 1885) based on that application or LoI was not issued before the start date of these rules.
In the same way, the Center has announced the Telecommunications (Authorisation for Captive Telecommunication Services) Rules, 2026, establishing a law stating that the network may only be utilized by the authorized company and its subsidiaries.
It stated that commercial exploitation or traffic routing for third parties is not allowed.
Captive networks generally utilize spectrum assigned directly by the government or rented from commercial telecom service providers (TSPs) to avoid interference.
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The approved entity must adhere to stringent data localization, encryption, and national security regulations established by the Center, it remarked.