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The government has notified the Telecommunications (Regulatory Sandbox) Rules, 2026, allowing eligible startups, companies, researchers and individuals to test innovative telecom technologies, services and business models in a controlled regulatory environment.
According to a Gazette notification, the Central Government can establish regulatory sandboxes on its own initiative or approve proposals submitted by applicants, including those responding to government invitations. The Central Government may, by order, create and specify a regulatory sandbox on the portal, (a) suo motu, after assessing the need for the same; or (b) upon acceptance under sub-rule (4) of a proposal submitted by an applicant under sub-rule (2) at his own initiative or in response to a request for proposals from the Central Government, the notification read. The rules also provide for exemptions from certain provisions of the Telecommunications Act, 2023, and the Telecom Regulatory Authority of India Act, 1997, to facilitate testing under specified conditions. A regulatory sandbox can initially operate for up to 24 months. The government may extend its validity by up to 12 months at a time, subject to specified conditions. Applicants seeking an extension must submit their requests at least 30 days before the existing validity period expires. Applicants will have to pay a non-refundable processing fee of Rs 10,000. Under the new rules, applicants must submit their applications through the designated government portal, along with reports of previous testing conducted in laboratories or controlled networks. They must also provide the required documents and specify the exemptions they seek from existing telecom regulations during the testing period. Approved applicants must obtain prior consent from users participating in the trials and inform them about the purpose and scope of the testing. Users cannot be charged for participating in these trials. The rules also prohibit the commercial sale or availability of technologies, services, products and business models undergoing testing during the sandbox period. Applicants must maintain records related to testing, including work plans, methodologies, user consent records and other relevant data, for at least one year after the sandbox's validity expires. Records must be retained for longer if required by the Central Government. (ANI)
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