Centre notifies new telecom sandbox rules for testing emerging technologies

The rules outline eligibility, testing timelines, reporting requirements and user safeguards, while allowing regulatory exemptions and government oversight of tested innovations

The Union Government on Wednesday notified the Telecommunications (Regulatory Sandbox) Rules, 2026, allowing eligible companies, startups, researchers and individuals to test new telecommunications technologies, services, products and business models under specified regulatory conditions.

 

The rules allow the government to grant exemptions from certain requirements under the Telecommunications Act, 2023, and the Telecom Regulatory Authority of India (Trai) Act, 1997, subject to specified conditions.

 

The rules came into force on October 21, 2026, the date of their publication in the Official Gazette. They follow the publication of the draft Telecommunications (Regulatory Sandbox) Rules, 2024, on November 27, 2024. The government said it had considered the objections and suggestions received before notifying the final rules.

 

Who can apply for a regulatory sandbox?

According to the notification, eligible applicants include authorised entities, companies, societies, partnership firms, statutory bodies, Indian citizens and research and development institutions recognised by the Department of Science and Technology.

 

Applicants must submit proposals in the prescribed format, along with reports of limited testing conducted in offline or laboratory environments and other tests, including those on experimental isolated networks, the notification said. They must also provide details of any regulatory exemptions required and other documents specified by the government.

 

A non-refundable processing fee of ₹10,000 applies. The government can assess proposals and accept or reject them. It can also create a regulatory sandbox on its own initiative after assessing the need.

Testing period and regulatory exemptions

The government will specify each sandbox's scope, objectives, eligibility criteria, testing conditions, risk management requirements and reporting obligations.

 

A regulatory sandbox can operate for up to 24 months. The government can extend this period by up to 12 months at a time, subject to the prescribed conditions and a request submitted at least 30 days before the existing validity period expires.

 

Any exemption from provisions of the Trai Act, 1997, requires prior consultation with Trai. Based on testing reports and results, the government can allow a sandbox to continue under revised conditions, direct its closure or permit steps towards the commercial deployment of a product, service or business model in accordance with applicable laws, the notification said.

Safeguards for users and testing

Approved applicants must comply with applicable data protection, security and other laws. They must establish mechanisms to enrol eligible participants, monitor testing and maintain records of test parameters, testing locations and results.

 

Where testing involves users, applicants must explain its purpose and scope, obtain prior consent and ensure users are not charged for participating in the test environment. Products, services, technologies, processes and business models under testing must not be commercially available in the market during the testing period.

 

Applicants must retain testing records, including work plans, methodologies and user consent records, for at least one year after the sandbox expires, or longer if required by the government.

 

They must also maintain confidentiality regarding the sandbox, its tests and results. The government can publish general information about sandboxes, approved applicants and participants without disclosing proprietary information.

Reporting requirements and government oversight

The government, as stated in the notification, can monitor and evaluate each sandbox, seek reports and data from approved applicants, and issue directions to ensure compliance and protect participants and test users.

 

Approved applicants must submit a comprehensive report within 15 days of completing testing or at least 30 days before the sandbox's validity period expires, as applicable. The report must cover test results, user feedback, complaints, security issues, challenges, risk mitigation measures and the closure of activities, including the settlement of contractual and financial obligations.

 

The government can suspend or revoke approval if an applicant submits false information, fails to comply with approval conditions or does not ensure compliance by participants, the rules said.

 

It can also take action if a sandbox interferes with an authorised entity's telecom network or if suspension or revocation is required in the interest of national security or the public.