The Telecommunications Act, 2023 ("Act"), enacted on December 24, 2023, marks a significant reform of India's telecommunications regulatory landscape. Repealing the Indian Telegraph Act, 1885 and the Indian Wireless Telegraph Act, 1933 (collectively referred to as "repealed Acts"), the new law introduces a modern legal framework for the development, expansion, and operation of telecom services and networks. Implementation of the new law is being carried out in a phased manner.
All Inclusive
The Act significantly expands the scope of the definition of 'telecommunications' to cover transmission, emission, or reception of messages via wire, radio, optical or electromagnetic systems, encompassing both traditional telephony and internet-based services.
While the draft Indian Telecommunication Bill, 2022 proposed bringing over-the-top ("OTT") platforms like WhatsApp, Telegram etc., within its ambit, the final Act excludes them. In July 2023, the Telecom Regulatory Authority of India ("TRAI") examined whether such OTT services should be regulated like Telecom Service Providers ("TSP") principle of 'same service, same rules.' Suggestions included subjecting OTTs to similar authorization and contribution requirements, such as to the Digital Bharat Nidhi.
However, the Department of Telecommunications ("DoT") clarified that Act only to TSPs. For now, OTT platforms continue to be regulated under the Information Technology Act, 2000 ("IT Act") and intermediary rules under the IT Act. This exclusion appears to be a strategic decision to avoid perceptions of overregulation. However, the limited jurisdiction over these platforms under the Act may pose challenges in curbing scams and spams, since enforcement rests with authorities delegated under the IT Act.
The intention of the Government may be to subsume the prevailing regulatory regimes into the new Act, though the regulator may need to tread cautiously before including the light touch regimes into the authorization framework, such as for M2M service providers, aside from the telcos. The all-inclusive approach of the Act, while aimed at unifying regulatory frameworks, risks imposing disproportionate compliance burdens on the M2M service providers. The DoT rejected TRAI recommendations to create a separate authorisation category for M2M providers. However, small businesses offering M2M services lack the financial or operational capacity to meet the obligations of authorisations. The rigid application of an "all-inclusive" framework under the Act could stifle innovation and discourage new market entrants.
License vs. Authorization vs. Registration
The Act replaces the licensing regime of the repealed Acts with a new statutory "authorisation" mechanism, empowering the government to permit entities to offer telecom services, establish telecom networks, or possess radio equipment.
Whilst this shift suggests simplification, TRAI's February 17, 2025 recommendations point to differentiated rules for various network types, mirroring the structure of the existing unified licensing regime. Without real reform of the license conditions, this change risks to being superficial. Gradual rationalization of the conditions will be key to ensuring the new regime provides a genuinely level playing field for incumbents and new entrants alike.
From Bidding Wars to Shared Skies
The Act has spurred the incentives for the industry by abandoning the sole reliance on an auction-based model for spectrum allocation. It adopts an administrative approach for satellite-based services, which facilitates greater participation and eliminates the financial hurdles associated with auctions.
On January 31, 2025, the Government released the draft rules for assignment of spectrum through auction, which are yet to be implemented. On May 9, 2025, TRAI released recommendations for assignment of spectrum for satellite-based services, recommending an administrative assignment system which is favoured by foreign players and a departure from auction-based allocation. TRAI recommended a shared spectrum for multiple operators, prioritising coordination based on good faith.
The recommendations align with the intention of the Government to liberalise foreign direct investment policy in the space sector and open the commercial telecom services market in India to foreign players.
To address the anxiety of the telcos who have acquired spectrum through auction for terrestrial network and are now pushing against administrative assignment of spectrum for satellite service players, policy intervention is required, at least initially, to achieve a level-playing field.
Streamlining Infrastructure Deployment
The Act establishes a standardized Right of Way ("RoW") framework, to streamline telecom infrastructure deployment. Any facility provider may apply to a public entity for RoW over public property seeking permission for surveying, installing or operating telecom networks under prescribed timelines and reasonable fees.
For private property, prior written consent of the property owner is mandatory before installing telecom infrastructure. All agreements are required to be in writing and if a property owner's actions cause damage to telecom infrastructure, the owner is required to compensate the cost of repair to the facility provider. Conversely, the facility provider must minimise disruption to the property and restore any damage during installation or operation by compensation.
The Act streamlines the RoW process, enabling telecom operators to access public and private land more easily for installing and maintaining critical infrastructure such as cables and towers. These changes will enhance the ease of doing business and benefit digital infrastructure expansion by facilitating faster deployment of telecom networks. However, its success will depend on addressing persistent challenges, including delays in approvals and resistance from local authorities or private land owners.
User Protection and Spam Regulation in Telecom Services
The Act dedicates specific provisions aimed at protection of users by preventing authorised entities from spamming of telecom consumers with "specific messages", including unsolicited offers, advertisements, or business solicitations, regardless of the intent and validity of such message. The Act allows the Government to implement measures for safeguarding users including obtaining prior consent of the users for receiving "specified messages", a mechanism to report any malware or messages received in contravention of the Act, maintaining a centralised "Do Not Disturb" register to ensure users can list themselves to block specified classes of messages lacking consent, and creating a mechanism for users to report messages that violate the rules.
The Act imposes duties on users forbidding furnishing of false information, suppressing material facts, or impersonation of others while availing a telecom service. The Act mandates service providers to identify end-users via 'verifiable biometric‐based identification' to enforce legitimate KYC norms. This is aimed to curb fraud and ensures a comprehensive user-protection framework codifying consent for communications, enabling complaint mechanisms, and penalizing user misrepresentation. The amended Customer Preference Regulations serves as the existing framework to strengthen consumer protection against unsolicited commercial communication, which was revised in 2025 to deal with evolving methods of telecom resource misuse and enhance transparency.
The Act intersects with the Digital Personal Data Protection Act, 2023 ("DPDP Act"), as both laws address personal user information and data. While the Act permits interception or suspension of messages on public safety grounds without the need to obtain user consent, this must be balanced with obligations under the DPDP Act which classifies biometric identification data as "sensitive personal data" subject to the stringent safeguards. Telecom operators must maintain parallel compliance with the Act and the DPDP Act ensuring user consent, data minimization, security standards and grievance redressal. The overlapping laws creates regulatory and compliance overburden, uncertainty and runs the risk of enforceability challenges.
Surveillance and Interception Powers
The Act grants broad powers to the Central and State Governments to intercept, suspend or control telecom networks during national emergencies.
The Telecommunications (Procedures and Safeguards for Lawful Interception of Messages) Rules, 2024 under the Act ("Interception Rules") lay out a structured framework to regulate lawful interception, mandating strict procedural safeguards and confidentiality. Designated nodal officers are required to handle all interception-related matters, and service providers are required to maintain execution of interception orders issued by the competent authority and maintain adequate and effective internal safeguards to prevent any unauthorised interception. The Interception Rules highlight confidentiality and extreme secrecy, recommending utmost care and precaution taken in the interception of messages, ensuring that records relating to interception are destroyed in a secure manner.
The Government must issue security directives mandating encryption standards, equipment procurement, and suspension of imported equipment on grounds of national security concerns. Thus, TSPs have an obligation to facilitate interception, safeguard networks, and share call/traffic data with authorities, subject to the Act's procedural restraints. The framework aims to balance national security with procedural accountability, ensuring that only authorised actors manage sensitive surveillance operations. However, the wide discretion granted to the Government, concerning equipment bans and encryption standards, leads to compliance uncertainty and raises concerns over transparency, privacy, and potential misuse.
In May 2025, the DoT issued additional compliance requirements under the Unified Licence ("UL") agreement framework for Global Mobile Personal Communications by Satellite ("GMPCS") services mandating interception of satellite communication services through monitoring facilities and data processing infrastructure located in India. The instructions aim to prohibit users from linking to foreign terminals and establish necessary interfaces and features to enable call monitoring to support both target-based and specific geographic location-based interception.
The intercepted data must be sent to designated agency servers on a fire-and-forget basis, and the entities must not retain any monitoring records. While these measures strengthen national security by ensuring complete domestic oversight of satellite communication, tightened security norms and stricter compliance under the instructions indicate that the ground impact is heavier on foreign operators who are now mandated to fully localise ground infrastructure.
Long Arm of the Law
For the first time, India's telecom law applies extraterritorially, enabling the prosecution of offences relating to telecom services, equipment, or network committed outside India. However practical enforcement across the borders remains a challenge, and the provision's effectiveness will depend on diplomatic and legal cooperation mechanisms.
Dispute Resolution
The Act introduces a structured three-tiered dispute resolution mechanism in matters related to the breach of terms and conditions of authorisation. The Government must appoint an Adjudicating Officer ("AO"), and Designated Appeals Committee ("DAC"), and ensure that TSPs establish an online mechanism to report grievance, facilitate consumer complaints and resolve service-related issues. Appeals against the order of AO lie with the DAC and further appeals lie before the Telecom Disputes Settlement and Appellate Tribunal. The Act grants limited jurisdiction to the civil court to hear certain matters on appeal from DAC.
Offences and Penalties
The Act classifies certain violations as a criminal offence attracting penalties, including imprisonment up to three (3) years and compensation, in addition to the imposition of liabilities and penalties for civil breaches. The provision of service or establishment of networks without proper authorization, causing harm to critical telecom infrastructure or networks, aiding, attempting, conspiring, or committing offenses are considered as serious violations under the Act. The possession and use of any equipment that blocks telecom services, jammers or similar blocking devices is strictly prohibited, except with the permission of the DoT. The penal provisions reinforce the security and maintenance of the telecommunications services and network in the country. With the enhanced penalties, the regulator is expected to cautiously invoke the applicable penal provision to avoid ambiguities leading to judicial intervention and resultant apprehension to entry and investment in the sector.
The Road Ahead
The Telecommunications Act, 2023 introduces ambitious reforms but still mirrors many legacy structures. This shift from 'licensing' to 'authorization' and from auctions to administrative spectrum allocation, may appear transformative, but often simply rebrand existing mechanisms, with the practical struggles and challenges persisting for the telco operators. Implementation remains a work in progress. Delays in notifying the critical rules, inconsistencies between the Act and the current licensing practices, the practical hurdles like procedural inefficiencies and regulatory overlap undermine the liberalization intended by the government.
For satellite operators and TSPs, the recent moves from the DoT and TRAI offer opportunities through simplified access and lower costs. Yet, increased surveillance obligations and infrastructure localization pose significant burdens, particularly on foreign entrants.
The adoption of new services into the Act may be a step in the right direction provided the rules allow increased innovation in the services and reduced compliance burden. The rules for authorisation and assignment of spectrum will play a crucial role in determining the ease of doing business and ascertain the efficacy of the new regime. Otherwise, the reforms risk remaining cosmetic, repackaging the old under the guise of the new.
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