The Central Government has introduced the Telecommunications (Authorisation for Captive Telecommunication Services) Rules, 2026, to provide a clear regulatory framework for captive telecom networks in India. The rules cover private 4G and 5G networks, captive radio trunking, captive VSAT services and certain government captive networks. They also define the eligibility, authorisation process and compliance requirements for organisations planning to operate these networks.
Core Features and Start Date
The rules set out the legal framework for captive telecom services. The key details below explain their commencement, legal authority and the types of services covered.
- Name: Telecommunications (Authorisation for Captive Telecommunication Services) Rules, 2026.
- Issued under: Telecommunications Act, 2023.
- Effective from: The date of publication in the Official Gazette (Gazette No. CG-DL-E-23062026-273771).
- What they cover: Terms and conditions for authorisations to provide four kinds of captive telecom services:
- Captive Mobile Radio Trunking Services (CMRTS): land mobile radio for internal use (e.g., police, mining, factories).
- Captive Non-public Networks (CNPN): private LTE/5G type networks in enterprises.
- Captive VSAT (very small aperture terminal) Services: private satellite data connectivity between an entityâs own locations.
- Captive General Services: a special category mainly for government / government-controlled entities in defined geographies.
Authorisation is only for captive use; no public/commercial telecom services can be offered on these networks.
Why Has DoT Introduced the New Policy?
The policy aims to provide a dedicated framework for captive telecom services while replacing the earlier system followed under the Indian Telegraph Act, 1885. Key drivers:
- New Telecom Act: The Telecommunications Act, 2023, requires a modern authorisation regime instead of legacy licenses under the 1885 Telegraph Act.
- Explosion of private networks: Enterprises want private 4G/5G, Wi Fi offload, factory automation networks, ports/mines private connectivity, in-house VSAT, etc. Earlier rules were unclear, slow and often depended on case-by-case approvals.
- Need to ring fence public networks vs captive: Without clear rules, there was a risk of captive networks being misused to provide quasi-public services, undercutting telecom service providers and creating security gaps.
- Security and âtrusted sourceâ agenda: The rules hardwire security requirements, data localisation, and the use of trusted equipment for sensitive networks.
- Migration from legacy licenses: Entities holding older overlapping licenses under the Telegraph Act or other regimes need a clean migration and surrender path.
So the intent is to promote industrial/private network innovation while maintaining security, orderly spectrum use and a clean boundary with public telecom services.
Who Is Eligible to Apply for a Captive Telecom Authorisation?
To apply, you must be either:
1. A company
- FDI must comply with the Governmentâs FDI policy and applicable law.
- Management must have a sound telecom/network track record.
2. Government/government-controlled entities
- Central/State Government departments, legislative bodies, courts, scheduled area administrations or other government-controlled entities (including autonomous bodies and not-for-profit government companies).
Additional rules:
- For âcaptive general servicesâ: only government / government-controlled entities (not private limited / non-government companies) can apply, unless DoT specifically relaxes this in public interest.
- Applicants must have no pending dues, unless a court stays payment and a specific undertaking is filed.
Financial terms: Fees and Guarantees
From the Schedule and relevant rules:
- Processing fee (one-time, per application):
- CMRTS: Rs 10,000
- CNPN: Rs 10,000
- Captive VSAT: Rs 10,000
- Captive general services: Nil
- Entry fee (one-time):
- CMRTS: Nil
- CNPN: Nil
- Captive VSAT: Rs 7.5 lakh
- Captive general services: Nil
- Initial guarantee (bank guarantee/performance bond/cash deposit):
- CMRTS: Rs 20,000
- CNPN: Nil
- Captive VSAT: Rs 3 lakh
- Captive general services: Nil
- Annual authorisation fee (illustrative for two key categories):
- CMRTS:
- Base: Rs 300 per user terminal, minimum Rs 5,000 per year.
- From year 4 onwards / on renewal: the minimum goes up to Rs 25,000.
- Police, fire, and government security services are exempt from the annual fee.
- Captive VSAT:
- Rs 10,000 per VSAT (including âearth station in motionâ) per year.
- Fee payable quarterly in advance/arrears, with interest on delays at SBI MCLR + 2%.
There is no authorisation fee for captive general services, and CNPNâs recurring fees come primarily from underlying spectrum arrangements rather than the authorisation itself.
Compliance Requirements for Businesses under the New Rules
Businesses planning to use captive telecom services must follow specific procedures to obtain authorisation and meet ongoing compliance requirements. The rules also lay down security, reporting, renewal and operational obligations throughout the authorisation period.
1. Getting an authorisation
- Apply online via the DoT portal in the prescribed form, attach the required documents, and pay the processing fee.
- If you hold an older, overlapping license/authorisation, you must surrender/waive it as per rule 6(3) and 8, old LOIs (letters of intent) under the Telegraph Act lapse if they did not lead to a license before these rules came into force.
- DoT may issue a Letter of Intent specifying:
- Payment of the applicable entry fee and guarantee.
- Surrender of overlapping licenses.
- Once LOI conditions are met, DoT issues the authorisation, specifying scope, service area, duration (up to 20 years), and effective date.
2. Obligations during the authorisation period
Once the authorisation is granted, businesses must continue to meet the conditions prescribed under the rules. Some of the key compliance requirements include:
- Businesses must continue to satisfy the eligibility conditions, including compliance with FDI regulations, maintaining a suitable management structure and ensuring there are no outstanding government dues.
- An annual certificate from the statutory auditor must be submitted confirming the shareholding pattern, including foreign investment, the ownership and control structure and compliance with the prescribed eligibility requirements.
- Any change in the company's shareholding, ownership, name, registered address or control must be reported to the Department of Telecommunications within the prescribed time.
- Authorisation fees must be paid every quarter. Where applicable, businesses must also maintain the required bank guarantee, performance guarantee or security deposit throughout the authorisation period. Payment delays may attract interest.
- For CNPN and VSAT, obtain spectrum lawfully:
- CNPN can lease access spectrum from a telco or obtain spectrum directly from the government; in either case, there is no automatic right to spectrum just because you have an authorisation.
- VSAT spectrum is obtained under applicable satellite/spectrum rules; this authorisation only covers network operations.
3. Network and data obligations:
- Use the network strictly for captive use, not to provide public/commercial telecom services.
- Keep all network systems within the authorised service area, restrict CNPN radio signals within the logical perimeter (geo coordinates) of the premises.
- Store all network data, logs and information within India; donât send copies outside India.
- Maintain extensive logs of CDRs, IP detail records, exchange logs, etc., as per Government directions.
- Ensure the network does not cause harmful interference, and resolve issues as directed by the Government.
4. Security and âtrusted productsâ
- Key board positions (majority directors) must be Indian citizens.
- CTO/network head, security and system administrators must be Indian citizens; foreign personnel require MHA security clearance and periodic re-verification.
- Only trusted telecom equipment from trusted sources can be deployed where mandated by the National Cyber Security Coordinatorâs âtrusted source/productsâ lists.
- Before procuring critical equipment, an entity must:
- Check if the equipment and vendor are on the trusted list; if not, follow the process to get clearance.
- Register and periodically report deployed equipment and its sources.
5. Network deployment and monitoring
- Obtain special approvals to deploy networks in sensitive / border / restricted areas specified by the Government.
- Provide monitoring facilities and lawful interception capabilities as directed, at own cost.
- Allow inspections and audits by the Government or designated agencies.
- Appoint a nodal officer in India responsible for compliance and communication with DoT.
6. Renewal, surrender, lapse
- Authorisation can be renewed (up to 20 years at a time) by applying at least 12 months before expiry, paying processing fees, and updating guarantees.
- Surrender is allowed, but all dues must be paid, and the spectrum will be taken back.
- If authorisation is revoked, surrendered, or expires, the entity must dispose of the radio equipment per law and cease network operations. Guarantees are released only after all dues are cleared.
Which Businesses Will Benefit the Most from the New Rules?
The new authorisation framework is designed to support industries that depend on secure, reliable and dedicated communication networks for their day-to-day operations. Businesses across manufacturing, logistics, critical infrastructure, government and other sectors can use these rules to deploy captive telecom networks with greater regulatory clarity and operational flexibility.
Industrial and logistics enterprises (CNPN)
- Manufacturing units, refineries, steel plants, automobile manufacturers, semiconductor facilities, ports, airports, warehouses, logistics hubs and mining operations are among the biggest beneficiaries of these rules. These businesses can deploy private 4G or 5G networks to support automation, improve communication across their facilities and manage day-to-day operations more efficiently.
- They can now run private 4G/5G or other non-public networks with a clear legal basis and defined process for spectrum leasing or assignment.
- Gains better automation, robotics, AGVs, IoT, predictive maintenance, and digital twins.
Large campuses and critical infrastructure
- IT parks, data centres, university campuses, R&D parks, power plants, and metro/rail systems benefit from captive networks for operations and safety, without entering the full telecom licensing regime.
Sectors needing private radio trunking (CMRTS)
- Police, fire, disaster response, municipal bodies, transport undertakings, airports, ports, mining and construction sites benefit from a modernized captive mobile radio trunking regime with reasonable license fees (or fee exemptions for critical services).
Enterprises with distributed sites (VSAT captive services)
- Banks, oil & gas networks, remote plants, offshore platforms, and border posts gain from a clear, dedicated captive VSAT authorisation with a predictable annual fee per terminal.
- The rules explicitly state that M2M/IoT devices are not counted as VSATs for fee purposes, lowering the cost of satellite IoT deployments.
Government networks (captive general services)
- Government departments and government-controlled entities get a zero fee authorisation category for defined captive networks (for example, specialised internal communications networks in specific regions), with strong security and localisation features.
Impact on Businesses, Transparency and Service Quality
The Captive Telecommunication Services Authorisation Rules, 2026, are expected to improve the way captive telecom networks are deployed and managed in India. By introducing a structured authorisation process and clearly defined compliance requirements, the rules aim to support business growth while promoting greater transparency, stronger security standards and improved service quality across private telecom networks.
Better legal certainty and ease of doing business
- Clear definitions of CNPN, CMRTS, captive VSAT and captive general services remove ambiguity that previously required case-by-case clarifications.
- A single, digital portal for applications, fees, guarantees and reporting improves predictability and cuts red tape.
- Migration and surrender of overlapping licenses is codified, preventing chronic licensing clutter.
Encouraging Industry 4.0 and innovation
- The new rules provide greater regulatory clarity, making it easier for businesses to plan long-term investments in private telecom networks. This can support automation, connected devices and other digital technologies across industrial operations.
- The CNPN rules explicitly allow spectrum leasing from telecom service providers or direct assignment by the Government, enabling businesses to choose between telecom operator-managed private networks and self-managed private networks.
Stronger security and data governance
- The rules strengthen network security by requiring Indian citizens in key roles, security clearance for foreign personnel, data localisation and the use of trusted telecom equipment.
- National security and cybersecurity concerns are addressed upfront, reducing the risk that private networks become soft spots in critical infrastructure.
Product and service quality
- The combination of security, logging, and interference control obligations pushes enterprises and vendors to maintain carrier-grade practices even on private networks.
- Interference controls and spectrum rules protect public networks and other captive users from being degraded by poorly engineered private systems.
Impact on the Indian economy
- Boost to Manufacturing, Ports, Logistics, and Mining: private networks enhance productivity, safety and real-time control, supporting Make in India, PM GatiShakti and logistics cost reduction.
- Catalyst for Telecom Equipment and System Integrators: new demand for RAN, core, edge, industrial IoT, network slicing, and security solutions tailored to CNPN and captive VSAT deployments.
- Higher FDI Comfort: foreign investors in factories and data centres get a more transparent regulatory route for internal connectivity and automation.
- Better National Security Posture: secure, well-regulated captive networks reduce the risk of cyber attacks, espionage and sabotage in critical installations, which indirectly protects economic assets and continuity.
Overall economic impact is positive, with more efficient industries, new telecom/IT services revenue, and better resilience.
Is the New Framework a Step Forward or an Additional Compliance Burden?
Like any major regulatory change, these rules bring both advantages and additional compliance responsibilities. While the framework creates a clear legal pathway for captive telecom networks, businesses will also need to meet new security, reporting and operational requirements. Understanding both sides is important before planning implementation.
Positives
- Enabling: For the first time, there is a comprehensive, modern legal base for private 5G, captive VSAT and trunking networks under the new Act.
- Predictable costs: Fees and guarantees are modest relative to typical project sizes. CNPN has no entry fee and no guarantee, which is notably liberal.
- Security with clarity: The rules clearly specify security requirements, including data localisation, the use of trusted equipment and security clearance for foreign personnel.
- No automatic spectrum lock-in: Authorisation doesnât guarantee spectrum; it forces disciplined spectrum management and cooperation with telcos or DoT.
Real burdens and challenges
- Compliance is non-trivial:
- Annual auditor certificates, shareholding disclosures, and reporting on any change in control.
- Detailed security and logging requirements, lawful interception facilities, and inspections.
- Trusted equipment rules may increase capex or limit vendor choices, especially for smaller enterprises.
- Some MSMEs may find the regulatory overhead high relative to small-scale private networks, pushing them toward telco-managed solutions instead of self-run CNPN.
Although the rules introduce additional compliance requirements, they also provide greater regulatory clarity and stronger security. For most businesses, the long-term benefits are likely to outweigh the additional compliance effort.
Business Opportunities under the New Rules
The new rules are expected to make it easier for businesses to set up and operate captive telecom networks under a clear regulatory framework. At the same time, they introduce new compliance, security and reporting requirements that businesses will need to manage on an ongoing basis.
- Telcos and system integrators: Designing, deploying and managing CNPNs, CMRTS and captive VSAT networks for factories, ports, mines, airports, and campuses.
- Telecom equipment vendors: Supplying a trusted source compliant RAN, core, routers, VSATs, industrial CPEs, and security appliances.
- Consulting and compliance services: The new rules are expected to increase demand for consultants who can assist businesses with authorisation applications, eligibility checks, regulatory compliance and ongoing reporting requirements.
- Cyber security and monitoring: Businesses may also require specialised cyber security solutions for log management, network monitoring, lawful interception compliance and regular security audits.
- Industrial IoT and automation platforms: Providers of Industrial IoT and automation solutions can leverage captive telecom networks to support applications such as robotics, automated guided vehicles (AGVs), remote maintenance using AR/VR and digital twins.
