The Department of Telecommunications (DoT) has reportedly rejected a proposal by the Telecom Regulatory Authority of India (TRAI) for DoT to regulate cloud service providers (CSPs). According to DoT, such entities are regulated by the Ministry of Electronics and Information Technology (MeitY) and the mechanism should continue.

The cloud services industry as well as technology and telecom players had earlier opposed TRAI’s recommendations and had written to the DoT that the services do not fall under the purview of telecommunications. Various industry associations had argued that the creation of an additional regulatory regime would be detrimental to attract investments in the cloud sector.

According to sources, in view of opposition by stakeholders, DoT had decided against framing any new policy for regulating the CSPs and to continue with the existing framework.