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Centre notifies telecom regulatory sandbox rules, allows temporary exemptions for testing new technologies

New Delhi, Oct 22 (UNI) The Centre has notified new rules allowing telecom companies, research institutions and other eligible applicants to test innovative telecommunications technologies, services and business models in a controlled regulatory environment, with provisions for temporary exemptions from specified regulatory requirements.
The Telecommunications (Regulatory Sandbox) Rules, 2026, notified by the Department of Telecommunications (DoT) under the Telecommunications Act, 2023, came into force on October 21 following their publication in the Gazette of India.
Under the new framework, the Central government can establish one or more regulatory sandboxes to facilitate the testing of telecommunications services, networks, equipment, processes, technologies, products and business models before their potential commercial deployment.
The rules permit a regulatory sandbox to operate for a maximum initial period of 24 months, with the government empowered to grant extensions of up to 12 months at a time, subject to prescribed conditions.
According to the notification, eligible applicants include authorised telecom entities, registered companies, societies, partnership firms, statutory bodies, Indian citizens and research and development institutions recognised by the Department of Science and Technology.
Applicants seeking to establish a regulatory sandbox must submit proposals with reports of preliminary laboratory or experimental testing and pay a non-refundable processing fee of Rs 10,000.
The government will examine the proposals and decide whether to approve or reject them.
The rules empower the Centre to grant exemptions from specified authorisation, assignment and other regulatory requirements under the Telecommunications Act, 2023, and applicable rules for the approved testing period.
Exemptions involving provisions of the Telecom Regulatory Authority of India Act, 1997, will require prior consultation with the Telecom Regulatory Authority of India (TRAI).
The notification also introduces safeguards for consumers participating in telecom trials. Approved applicants must inform test users about the purpose and scope of testing, obtain their prior consent and ensure that they are not charged for participating in the testing environment.
Applicants and participants must comply with applicable data protection and security laws. The rules also require that services, technologies, products, processes or business models undergoing testing are not made commercially available during the testing period.
Approved applicants will be required to maintain records of testing activities, including methodologies, results and user consent, for at least one year after the expiry of the sandbox's validity period, or longer if directed by the government.
The Centre will have powers to monitor sandbox operations, seek reports and records, and issue directions to ensure regulatory compliance and protect participants and test users.
Under the rules, approved applicants must submit comprehensive reports covering testing outcomes, consumer feedback, complaints, security concerns and risk-mitigation measures within 15 days of completing testing or at least 30 days before the expiry of the sandbox's validity period, as applicable.
Based on the results, the government may permit continued testing, direct closure of the sandbox or allow steps towards commercial deployment of the tested product, service or business model in accordance with applicable laws.
The rules also empower the government to suspend or revoke approvals for providing false information, violating prescribed conditions, interfering with authorised telecom networks or on grounds of national security and public interest.
UNI KK ARN
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