The government of India has notified the Telecommunications (Regulatory Sandbox) Rules, 2026, allowing certain telecom technologies, services, products and business models to be tested in a controlled environment with exemptions from specified regulatory requirements, in a move expected to foster innovation in the sector.
Under the new rules, the government can create regulatory sandboxes on its own initiative or approve proposals submitted by applicants. The rules provide exemptions from certain requirements under the Telecommunications Act, 2023 and the Telecom Regulatory Authority of India Act, 1997.
A regulatory sandbox will allow new services and technologies to be tested under prescribed conditions before commercial deployment. The government may specify eligibility criteria, risk management measures, the scope of a trial and other related matters. The validity of a sandbox cannot exceed 24 months, with extensions of up to 12 months at a time permissible subject to prescribed conditions. Applicants must submit proposals along with preliminary testing reports and other required documents, and a non-refundable processing fee of Rs 10,000 will apply.
The rules prescribe safeguards for users involved in trials, including mandatory disclosure of the purpose and scope of testing, prior consent and a prohibition on charging test users for participation. Approved applicants must comply with applicable data protection and security laws, maintain testing records and ensure that products, services or technologies under trial are not commercially available during the sandbox period.
The government may monitor trials, seek reports and issue directions to ensure compliance. Based on trial outcomes, it may allow a sandbox to continue under revised conditions, order its closure or permit steps towards commercial deployment. The rules replace the draft Telecommunications (Regulatory Sandbox) Rules published in November 2024.