For global telecom companies, complying with telecom data sovereignty laws has become increasingly important. These laws are constantly evolving, with updates rolling in regularly and new regulations stacked on top of the old ones. Updates to laws like China’s PIPL and India’s DPDP are prime examples of how quickly these regulations can change. Despite the challenges, staying compliant is a must, especially with the hefty penalties for failing.
Compliance is definitely achievable, and in this article, we’ll show you how InCountry can help you stay on track without breaking a sweat. Before we dive into that, though, let’s first take a closer look at the data sovereignty challenges telecom companies face today.
The landscape of data sovereignty in the telecom industry
What exactly is data sovereignty?
it’s the idea that data is subject to the laws and regulations of the country where it’s collected, processed, or stored. In the telecom industry, this concept has gained immense importance, especially given the vast amounts of sensitive user information being transmitted and stored across borders. As telecom companies strive to comply with various regulations, they face a unique mix of challenges and opportunities.
The landscape of data sovereignty for telecom industry is both complex and ever-changing, shaped by a range of factors. Let’s break down some of the key elements:
- National regulations: Every country has its own set of laws governing how data is handled—whether it’s collected, stored, or processed. These laws can differ greatly, creating challenges for telecom companies that need to operate across multiple borders.
- International agreements: On a global scale, there are several agreements that shape data sovereignty, such as the General Data Protection Regulation (GDPR) or Standard Contractual Clauses (SCCs). While these agreements are designed to provide some consistency, they also add layers of compliance complexity for telecom companies, especially when it comes to cross-border data transfers.
- Customer expectations: Customers are more aware than ever about the privacy and security of their data. They want assurance that their personal information is being handled responsibly and that it’s protected from unauthorized access. This growing concern around data privacy is a key driver for telecom companies, who must balance customer expectations with legal compliance.
- Technological advancements: New technologies—like cloud computing and artificial intelligence are opening up exciting opportunities for telecom companies to collect, process, and analyze vast amounts of data. However, these technologies also bring new challenges in terms of data sovereignty. As telecom companies adopt cutting-edge tech, they must ensure that these advancements don’t compromise data privacy or violate national regulations.
To address these challenges, telecom companies are innovating with new technologies and strategies. Some are investing in or partnering with data centers located within specific countries or regions to ensure compliance with local laws. Others are collaborating with governments to create international agreements that facilitate safe, compliant data transfer across borders. These collaborative steps are promoting solutions that safeguard data privacy, enhance security, and ultimately ensure data residency in the telecom industry is seamless even across borders.
Why is telecom data sovereignty important?
Telecom data sovereignty is very important because of the unique nature of the industry and the sensitive information it handles. Below are other reasons data sovereignty is very important:
- Protection of sensitive user data: Telecom companies manage large volumes of personal and sensitive data, including call records, location information, and internet usage. Data sovereignty seeks to protect user privacy and build trust.
- Compliance with regulations: Countries often impose strict requirements to ensure data is stored, processed, and accessed within their jurisdiction. Complying with these local laws and regulations avoids legal penalties and reputational damage.
- National security: Telecom infrastructure is critical to national security. Data sovereignty helps governments safeguard against espionage, cyber threats, and unauthorized access to sensitive communication data.
- Facilitating cross-border operations: With data flowing across international boundaries, telecom companies must comply with various sovereignty laws. Adherence to these rules is essential for seamless operations and maintaining partnerships in multiple jurisdictions.
- Impact of emerging technologies: As 5G, IoT, and AI drive the next wave of telecom innovations, the amount and sensitivity of data being exchanged grow exponentially. Data sovereignty ensures these technologies are implemented responsibly and securely.
In summary, data sovereignty in telecom is vital for privacy, security, regulatory compliance, and fostering innovation in a globally connected yet legally diverse environment.
Telecom data sovereignty laws and regulations
As we review data sovereignty laws by country, we’ll focus more on the telecom data sovereignty regulations in key countries and regions that are major players in the global industry.
They include:
- Europe.
- The United States of America
- China.
- India.
European GDPR as a telecom data sovereignty law
The General Data Protection Regulation (GDPR), enforced in the European Union (EU) is one of the most significant data protection laws globally. Although it applies to all industries, its implications for the telecom sector are particularly significant due to the nature and volume of personal data telecom companies handle. By regulating how telecom personal data is collected, processed, stored, and transferred, the GDPR acts as a critical framework for telecom data sovereignty in Europe. We shall review some of the key provisions of the GDPR regarding the telecom industry in the section below:
- Data residency requirements
The GDPR mandates that personal data collected within the EU is subject to the bloc’s privacy laws, regardless of where it is processed. This provision enforces data sovereignty by ensuring that EU citizens’ data remains protected even when transferred outside the EU. Telecom operators must ensure that all user data, including call records, geolocation, and browsing history, comply with GDPR requirements, especially when using global infrastructure or outsourcing to international vendors.
- Cross-border data transfers
Telecom companies can only transfer data to non-EU countries if the European Commission has adequately approved the destination country’s data protection laws. When transferring data to countries without adequacy decisions, telecom operators must implement SCCs to ensure the recipient meets GDPR standards. Global telecom operators like Vodafone, Orange, and Deutsche Telekom must follow these rules carefully, especially when offering services in countries lacking strong data privacy laws.
- Data minimization and purpose limitation
Telecom companies must collect only the data necessary for specific, legitimate purposes and cannot use it beyond the stated intent. Operators who collect large amounts of data for billing, service optimization, or marketing purposes must establish strict controls to avoid over-collection and misuse.
- Data subject rights
The GDPR gives individuals control over their data through rights such as access, correction, erasure (“right to be forgotten”), and objection to data processing. Telecom providers must implement systems to allow users to exercise these rights. For instance, customers can request to see how their call or location data is used or demand its deletion, etc.
- Accountability and governance
Telecom operators are required to maintain detailed records of their data processing activities and demonstrate compliance through audits, impact assessments, and Data Protection Officer (DPO) appointments. Large telecom companies must invest in data governance frameworks, compliance teams, and privacy-by-design principles when deploying new technologies like 5G or IoT.
- Security and breach notification
Telecom companies must ensure robust data security measures and notify regulators and affected individuals within 72 hours of a data breach.
Telecom data sovereignty regulation in the USA
The United States does not have a single, comprehensive data sovereignty law governing the telecom sector. Instead, it relies on a network of federal, state, and sector-specific laws and regulations. All of these aim to protect sensitive data while accommodating the cross-border nature of telecom services. In this section, we shall review some of these laws:
Federal Communications Commission (FCC) Regulations as a Data Sovereignty Law
The FCC enforces rules that align with data sovereignty principles by ensuring telecom data is managed securely and transparently within U.S. jurisdiction. Here are some of its provisions:
- Consumer privacy protection: Telecom providers must safeguard customer proprietary network information (CPNI), including call details and billing data, ensuring it’s only used for approved purposes.
- Data breach notification: Providers must report breaches affecting CPNI to law enforcement and notify customers when necessary.
- Accessibility and service quality: Enforces standards to ensure reliable telecom services while protecting consumers from unfair practices.
- Compliance and reporting: Telecom operators must file annual certifications and audits to confirm adherence to FCC rules.
These regulations reflect a focus on protecting consumer data while ensuring adherence to national legal frameworks.
State-based privacy laws – California Consumer Privacy Act (CCPA)
The CCPA enforces data sovereignty by granting California residents control over their personal information and regulating its use:
- Data access and control: It grants individuals rights to access, delete, and opt out of the sale of their data, ensuring it is managed within California’s legal framework.
- Transparency requirements: Businesses, including telecom providers, must disclose how they collect, use, and share data, enhancing accountability.
- Jurisdictional scope: This applies to companies operating in or serving California residents, even if data is processed outside the state, emphasizing California’s legal authority over its citizens’ data. The CCPA strengthens data sovereignty by prioritizing local oversight and user rights.
Telecom data sovereignty laws in China
China’s approach to telecom data sovereignty is among the strictest globally. It is driven by concerns over national security, data protection, and economic interests. The legal framework emphasizes data localization, government oversight, and controlled cross-border data flows. In this section, we shall highlight the sovereignty features of existing data privacy laws:
- Cybersecurity law (CSL) (2017):
The CSL mandates that telecom operators and Critical Information Infrastructure (CII) providers store data within China. Any cross-border data transfers must undergo strict security assessments to ensure compliance with national standards, prioritizing data sovereignty and security.
- Data Security Law (DSL) (2021):
The DSL classifies data based on its importance to national security and economic stability. It imposes stringent controls on telecom operators handling “important data,” requiring detailed risk assessments and government approval for data exports.
- Personal Information Protection Law (PIPL) (2021):
The PIPL enforces strict rules on the collection, processing, and sharing of personal information, including telecom personal data. Telecom operators must obtain explicit user consent for data handling and ensure that any data transferred overseas adheres to protection standards equivalent to China’s.
These laws collectively define Chinese data sovereignty laws and emphasize data localization, security, and user privacy, thereby shaping the telecom sector’s operations within China’s legal framework.
Telecom Data Sovereignty Laws in India
India’s telecom industry operates under an evolving regulatory environment that prioritizes data sovereignty to protect personal data and critical national infrastructure. Like China, India does not have a single, consolidated data sovereignty law. Rather it operates several laws and guidelines that govern how telecom operators handle, store, and process data. We shall briefly highlight them in this section:
- Information Technology Act, 2000 (IT Act)
The IT Act is India’s foundational cyber law. It governs data protection and security in digital spaces, including telecom operations. The areas applicable to the telecom industry are as follows:
- Section 43A: Imposes obligations on entities, including telecom companies, to protect sensitive personal data through reasonable security practices.
- Section 72A: Penalizes unauthorized disclosure of personal data.
Telecom companies are required to secure sensitive user data, such as call logs and geolocation information, under the IT Act’s broader digital privacy framework.
- Digital Personal Data Protection Act, 2023 (DPDP Act)
The DPDP Act, which replaced earlier drafts of personal data protection bills, is India’s primary data protection law and heavily influences telecom data protection. Below are some provisions that strictly apply to the telecom industry:
- Data Localization: Requires “critical personal data” to be stored only in India, though non-critical data can be processed internationally under specific conditions.
- Consent Requirements: Mandates explicit user consent for data processing and cross-border transfers.
- Data Principal Rights: Grants individuals’ rights such as access, correction, and deletion of personal data.
Telecom operators must localize critical customer data (e.g., call metadata) and ensure compliance with consent requirements for international data transfers. It also enforces rights such as data access or deletion and adds operational complexities.
- Telecom Regulatory Authority of India (TRAI) Guidelines
This is India’s telecom regulator, and it issues guidelines to ensure data protection and security in telecom operations. Below are some provisions of the TRAI:
- Customer Data Protection: Telecom operators are required to protect customer data, including call records, location data, and billing details, from unauthorized access or misuse.
- Data Retention: Specifies the duration for which telecom operators must store customer data (typically one year for call detail records).
Finally, TRAI guidelines enforce localized data storage and handling practices to maintain sovereignty over customer data.
Main challenges regarding data sovereignty in the industry
Telecom companies face several hurdles when it comes to compliance, In this section, we shall review some of the telecom data sovereignty challenges that can impede compliance efforts.
- Conflicting international regulations:
One major challenge is the clash between data sovereignty laws in different countries. For example, the EU’s GDPR mandates strict data protection, while the U.S. Cloud Act allows authorities to access data stored overseas. These conflicting regulations can put companies in a tough spot, risking fines or legal issues if they don’t manage compliance across borders properly.
- Data localization requirements:
Many countries now require telecom companies to store and process certain types of data within their borders. Laws like India’s DPDP Act and China’s PIPL make local data storage a must. While this helps with compliance, it also drives up costs for building and maintaining local data centers, and can slow down access to data for global operations.
- Rising compliance costs.
Adhering to the varying data sovereignty laws across different countries requires companies to make significant investments in technology, legal expertise, and compliance frameworks. For example, businesses must establish strong governance systems to manage data localization, encryption, and cross-border data transfers. This can be particularly challenging for smaller companies, as they often struggle to bear the high compliance costs, which puts them at a disadvantage compared to larger competitors. Moreover, the heavy compliance demands can divert resources away from innovation and growth, limiting the company’s ability to focus on its core business activities.
- Balancing privacy concerns and business needs.
Data sovereignty laws often prioritize privacy over business efficiency, which can limit the ability to share data and conduct cross-border operations. For example, industries such as healthcare and finance rely on global analytics and collaboration, but these efforts can be hindered by restrictions on international data transfers. As a result, telecom businesses may face reduced agility and struggle with inefficiencies when trying to leverage global data for innovation and gaining insights into customer needs.
- Technological constraints.
Implementing data sovereignty measures requires advanced technological solutions like encryption, sovereign clouds, and geofencing, all of which can be resource-intensive. Additionally, businesses may face delays in implementation due to a lack of technical expertise. Integrating these new sovereignty-compliant technologies with existing IT systems can be challenging, leading to further complications in ensuring full compliance.
How InCountry helps telecom companies stay compliant with data sovereignty laws
When it comes to data sovereignty compliance, three key concerns often stand out for telecom business leaders:
- The high costs of acquiring the infrastructure needed for compliance.
- The expense of hiring experts to manage that infrastructure.
- The constantly evolving nature of data privacy laws, driven by new technologies and cyber threats.
Over the years, we’ve made significant efforts and investments in developing the requisite solutions, tools, and infrastructure to handle global data management seamlessly. We ensure that your data is stored where it needs to be, while still giving you easy remote global access.
And because compliance is at the heart of our mission, we’re always on top of regulatory changes and trends, so your business remains compliant no matter how the laws evolve.
Reach out to us today, and let’s talk about how we can tailor our solutions to fit your unique business demands with regard to data sovereignty and management.