Telecommunications (Regulatory Sandbox) Rules, 2026 · No.24-11/2024-UBB

Telecommunications (Regulatory Sandbox) Rules, 2026[^1]

Whereas a draft of the Telecommunications (Regulatory Sandbox) Rules, 2024 was published, as required under sub-section (1) of section 56 of the Telecommunications Act, 2023 (44 of 2023), in the Gazette of India, Extraordinary, Part II, section 3, sub-section (i), vide notification number G.S.R. 736(E), dated the 27^th November, 2024, inviting objections and suggestions from all persons likely to be affected thereby, before the expiry of a period of thirty days from the date on which the copies of the Official Gazette containing the said notification were made available to the public:

And whereas copies of the said Official Gazette were made available to the public on the 28^th November, 2024:

And whereas objections and suggestions received from the public in respect of the said draft rules have been duly considered by the Central Government:

Now, therefore, in exercise of the powers conferred by sub-section (1) and clause (y) of sub-section (2) of section 56 of the Telecommunications Act, 2023 (44 of 2023), the Central Government hereby makes the following rules, namely:—

1. Short title and commencement.—(1) These rules may be called the Telecommunications (Regulatory Sandbox) Rules, 2026.

(2) They shall come into force on the date of their publication in the Official Gazette.

2. Definitions.—(1) In these rules, unless the context otherwise requires,—

• (a) “Act” means the Telecommunications Act, 2023 (44 of 2023);
• (b) “applicant” means an authorised entity or company, society or partnership firm or a statutory body, duly incorporated, registered or constituted under any law for the time being in force in India, or an Indian national, or a research and development institution recognised by the Department of Science and Technology, Ministry of Science and Technology, Government of India, who has submitted a proposal under rule 4;
• (c) “approved applicant” means an applicant approved by the Central Government or a person authorised by the Central Government in this behalf for the purposes of creation, operation and management of a regulatory sandbox;
• (d) “participant” means a participant in a regulatory sandbox that satisfies the eligibility criteria specified pursuant to rule 5;
• (e) “portal” means portal as referred to in rule 12;
• (f) “test users” mean the limited set of users who voluntarily participate in a regulatory sandbox;
• (g) “validity period” means the duration of the regulatory sandbox specified under sub-rule (2) of rule 5.

(2) Words and expressions used in these rules and not defined herein but defined in the Act or the rules made thereunder shall have the meanings respectively assigned to them in the Act or the said rules.

3. Application.—These rules provide for creation of one or more regulatory sandboxes and the terms and conditions applicable in respect thereof for the purposes of facilitating innovation and technological development in telecommunication.

4. Creation of regulatory sandbox.—(1) The Central Government may, by order, create and specify a regulatory sandbox on the portal,—

• (a) suo motu, after assessing the need for the same; or
• (b) upon acceptance under sub-rule (4) of a proposal submitted by an applicant under sub-rule (2) at his own initiative or in response to a request for proposals from the Central Government.

(2) An applicant may submit a proposal for a regulatory sandbox under clause (b) of sub-rule (1) in such form and manner and accompanied by such documents as specified on the portal, along with—

• (a) copies of reports of the limited testing undertaken by the applicant in offline or laboratory environment in respect of the subject matter of the application;
• (b) copies of reports of any other testing, including in experimental isolated networks;
• (c) any other information or documents as may be specified by the Central Government;
• (d) any exemptions from the requirements of authorisation or assignment or any other provision under the Act or rules made thereunder, or under the Telecom Regulatory Authority of India Act, 1997 (24 of 1997), as may be required for the purposes of such sandbox; and
• (e) non-refundable processing fees of ten thousand rupees.

(3) On receipt of a proposal under sub-rule (2), the Central Government may make such inquiry as it deems fit, regarding the eligibility of such proposal and, for this purpose, require the applicant to furnish such information as it may call for.

(4) The Central Government may, pursuant to the inquiry as to eligibility of the proposal received under sub-rule (2), either accept or reject such proposal.

5. Terms and conditions of regulatory sandbox.—(1) For any regulatory sandbox created under rule 4, the Central Government may specify on the portal one or more of the following terms and conditions, namely:—

• (a) The scope and objective of the regulatory sandbox;

• (b) The name and details of one or more approved applicants responsible for operation and management of the regulatory sandbox and the obligations of such approved applicants;

• (c) The eligibility criteria for participants in such regulatory sandbox and the obligations of such participants;

• (d) The details of telecommunication services or telecommunication network or equipment or processes or technologies or products or business models that may be tested in such regulatory sandbox;

• (e) The exemptions granted from the requirements of authorisation or assignment or any other provisions under the Act or the rules made thereunder, or under the Telecom Regulatory Authority of India Act, 1997 (24 of 1997) or the regulations made thereunder for the validity period of the regulatory sandbox:

  Provided that any exemption from the applicability of any provisions of the Telecom Regulatory Authority of India Act, 1997 (24 of 1997) shall be specified after prior consultation with the Telecom Regulatory Authority of India;

• (f) The risk analysis and management required to ensure mitigation of any potential risks;

• (g) The reporting requirements including those relating to the methodology of testing and steps to be taken to ensure compliance with the terms and conditions of the regulatory sandbox;

• (h) The validity period of the regulatory sandbox;

• (i) The details of the exit strategy for exiting the regulatory sandbox; and

• (j) The details of any other matter that in the opinion of the Central Government is relevant and connected with or related to the participation in such regulatory sandbox.

(2) The validity period of a regulatory sandbox shall not exceed twenty-four months:

Provided that the Central Government may, if it considers necessary, extend the validity period for a further period not exceeding twelve months at a time, upon receipt of a request for extension from an approved applicant in such form and manner as specified on the portal, at least thirty days prior to the expiry of such validity period, accompanied by justification and purposes of such extension, or upon receipt of a continuation thereof under rule 8.

6. Obligations of approved applicant.—(1) Every approved applicant shall comply with the terms and conditions of a regulatory sandbox specified under rule 5 for undertaking testing by itself or through other participants, in the relevant regulatory sandbox.

(2) Without prejudice to the generality of sub-rule (1), every approved applicant shall—

• (a) establish mechanisms for—
  • (i) onboarding of participants based on eligibility criteria;
  • (ii) adherence by each participant to the terms and conditions of the regulatory sandbox;
  • (iii) specifying the test parameters, control boundaries, testing sites and manner of maintenance of records of the test results by each participant; and
  • (iv) monitoring and evaluating the testing undertaken by participants within the specifications referred to in sub-clause (iii);
• (b) ensure adherence, by itself and by every participant, with laws relating to data protection and security, and any other applicable law for the time being in force, when onboarding test users for testing within such regulatory sandbox;
• (c) provide to the Central Government information of the participants in a regulatory sandbox as well as their exit from such sandbox;
• (d) (i) inform such test users the purpose and scope of testing being undertaken;
  • (ii) obtain prior consent of the test users for being part of the test environment of the regulatory sandbox; and
  • (iii) ensure that test users are not charged for their participation in the test environment, where the regulatory sandbox involves enrolment of test users for testing of telecommunication services, telecommunication network, equipment, processes, technologies, products or business models;
• (e) ensure that the telecommunication services or technologies or products, processes or business models being tested in the regulatory sandbox are not commercially available in the market during the testing period;
• (f) ensure storage of records relating to the testing, including work plans, methodologies, consent records of test users and other relevant data for a period not less than one year after expiry of validity period of the regulatory sandbox, and for such longer period or periods as may be determined by the Central Government;
• (g) ensure destruction of data and records specified under clause (f) in a secure manner;
• (h) keep the Central Government indemnified from any acts of omission or commission, breaches or any kind of culpability or liability arising out of or in relation to any testing in the regulatory sandbox by itself or by any participant; and
• (i) ensure that confidentiality is maintained, by it and the participants, with regard to the regulatory sandbox, including testing and results thereof: