The Ministry of Communications issued the Telecommunications (Regulatory Sandbox) Rules, 2026, to facilitate innovation and technological development in the telecommunications sector.
The following has been stated:
The rules provide for the creation of one or more regulatory sandboxes for testing new telecommunication services, networks, equipment, technologies, products and business models. Applications may be submitted by eligible entities, companies, societies, partnership firms, statutory bodies, Indian nationals and recognised R&D institutions, along with prescribed documents and a non-refundable processing fee of ₹10,000.
The Central Government may specify the scope, eligibility conditions, applicable exemptions, risk-management requirements, reporting requirements and exit strategy for each sandbox. The validity period shall generally not exceed 24 months, with extensions of up to 12 months at a time being permitted subject to the prescribed conditions.
Approved applicants are required to ensure compliance with data protection and security laws, obtain prior consent from test users, maintain testing records for at least one year after expiry of the sandbox, securely destroy applicable data and records, and maintain confidentiality regarding the sandbox, testing and results.
The Central Government may monitor and evaluate the sandbox and require reports covering testing results, user feedback, complaints, security issues, challenges, consumer protection and risk-mitigation measures. Based on the results, the Government may permit continuation, direct closure, or allow steps towards commercial deployment in accordance with the Telecommunications Act, 2023 and applicable rules.
The rules also provide for suspension or revocation of approval in specified circumstances, including false information, non-compliance, interference with telecom networks, or where required in the interest of national security or public interest. The rules come into force from the date of their publication in the Official Gazette.
