New Delhi: The Union government has notified the Telecommunications (Regulatory Sandbox) Rules, 2026, allowing eligible companies, startups, researchers and individuals to test new telecom technologies, services, products and business models under specified conditions.
The rules allow exemptions from certain provisions of the Telecommunications Act, 2023 and the Telecom Regulatory Authority of India (TRAI) Act, 1997. They came into force on October 21, 2026, the date of publication in the Official Gazette, after the draft rules published in November 2024 were considered along with objections and suggestions.
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. They must submit proposals, reports of limited offline or laboratory testing and details of any regulatory exemptions sought. A non-refundable processing fee of Rs 10,000 applies.
A sandbox can run for up to 24 months, extendable by 12 months at a time. Exemptions from the TRAI Act require prior consultation with TRAI.
Where testing involves users, applicants must explain its purpose and scope, obtain prior consent and not charge participants in the test environment. Products or services under testing must not be commercially available during the period. Testing records must be kept for at least a year after the sandbox ends.
Applicants must submit a comprehensive report within 15 days of completing testing. The government can suspend or revoke approval for false information or non-compliance.
Based on testing reports, the government can allow a sandbox to continue, direct its closure or permit commercial deployment. It can also revoke approval in the interest of national security or the public, giving innovators a clear framework to test new technology.