India Notifies New Telecom Rules for Testing Emerging Technologies

The Ministry of Communications, from the Department of Telecommunications (DoT) has notified the Telecommunications (Regulatory Sandbox) Rules, 2026, on 21st of October 2026. These rules will allow the selected telecommunications technologies, services, products, processes and business models to be tested in the controlled environments with the mentioned exemptions from the certain regulatory requirements. It aims to facilitate the innovation and technological development while maintaining safeguards for users, data security and telecommunications networks.

What Is a Regulatory Sandbox?

A regulatory sandbox is a controlled testing environment in which eligible participants can trial new products, services, technologies or business models under specified conditions, including limited regulatory relaxations.

Under the Section 27 of the Telecommunications Act, 2023, the Central Government may establish the regulatory sandboxes to encourage the innovation and technological development in telecommunications. The 2026 rules specify how these sandboxes can be created, operated, monitored and closed.

For example, a company developing a new network technology could test it with a limited group of users before commercial deployment, subject to the approved scope, safeguards and exemptions.

Key Provisions of the Telecommunications (Regulatory Sandbox) Rules, 2026

These rules establish the following framework,

Creation of sandboxes: The Central Government may establish a sandbox on its own initiative or accept a proposal submitted by an eligible applicant.
Application fee: A non-refundable processing fee of ₹10,000 applies.
Initial validity: A sandbox may operate for the maximum period of 24 months.
Extension: The government may grant extensions of up to 12 months at a time, that is subject to the prescribed conditions.
Regulatory exemptions: Some of the specified provisions of the Telecommunications Act, 2023 and its rules or the TRAI Act, 1997, set to be relaxed for the approved testing period.
Government oversight: The government can monitor the activity such as trials, demand reports and issue directions to ensure compliance and protect participants

Eligibility and Application Requirements

The rules permit a range of the different applicants to propose the regulatory sandboxes. Eligible applicants include,

Authorised entities.
Companies, societies and partnership firms registered under Indian law.
Statutory bodies constituted under applicable law.
Indian nationals.
Research and development institutions recognised by the Department of Science and Technology under the Ministry of Science and Technology.

Applicants must submit the prescribed proposal and supporting documents, including reports of preliminary laboratory or offline testing and other relevant testing, such as trials in isolated experimental networks. The Central Government examines the proposal and may accept or reject it.

Safeguards for the Test Users and Data

The rules establish safeguards to ensure that experimentation does not compromise user rights, security or regulatory oversight.

Informed consent: Test users must be informed about the purpose and scope of the trial and must provide prior consent.
No participation charges: Test users cannot be charged for participating in the testing environment.
Data protection: Approved applicants must comply with applicable data protection, security and other laws.
No commercial availability during trials: Products, services, technologies and business models under testing must not be commercially available in the market during the trial.
Record retention: Testing records, including consent records and methodologies, must be retained for at least one year after the sandbox expires, unless a longer period is prescribed.
Reporting: Applicants must submit a comprehensive report covering outcomes, user feedback, complaints, security issues and risk-mitigation measures.

Monitoring, Closure and Commercial Deployment

The Central Government can monitor and evaluate each sandbox, seek information from approved applicants and require access to the testing environment. It may also suspend or revoke an applicant’s approval in specified circumstances, including non-compliance, false information, interference with telecommunications networks or concerns involving national security or public interest.

After reviewing the results, the government may allow the sandbox to continue under revised conditions, order its closure or permit steps towards commercial deployment in accordance with applicable laws. Completing a sandbox does not automatically exempt a product from the authorisations required for commercial operation.