Indian government has reportedly asked operators of popular webmail services to route all mails accessed within India through local servers so that they can be monitored as per requirement.
Hotmail, Yahoo Mail and Gmail are the primary targets of this move as the government aims to tighten control over the flow of information from India through the internet.
They have already forced Research in Motion to setup a local server in India to enable monitoring of all communications on their Blackberry network.
Yahoo Mail users are probably going to be worst affected by this move. Yahoo allow users to register accounts on their international servers which means that all the communications are handled by servers operational outside the Indian borders.
If they are forced to comply with these rumored regulations, they would have to come up with ways to route the traffic on these accounts through Indian servers.