India has notified the Telecommunications (Regulatory Sandbox) Rules, 2026, allowing new telecom technologies, services, products and business models to be tested in controlled environments before commercial deployment. The framework permits time-bound exemptions from certain requirements under the Telecommunications Act, 2023, and the Telecom Regulatory Authority of India Act, 1997.
The rules allow the government to establish regulatory sandboxes on its own initiative or approve proposals submitted by applicants. A sandbox will operate under prescribed conditions covering the scope of the trial, participant eligibility and measures for managing potential risks.
The validity of a sandbox cannot exceed 24 months. The government may grant extensions of up to 12 months at a time, subject to the conditions prescribed for the trial. Applicants must submit proposals along with preliminary testing reports and other required documents. A non-refundable processing fee of Rs 10,000 will apply.
The framework introduces specific safeguards for users involved in trials. Participants must explain the purpose and scope of testing to users, obtain their prior consent and ensure that users are not charged for taking part. Approved applicants must also comply with applicable data protection and security laws, maintain records of the testing process and ensure that the products, services or technologies under trial are not commercially available during the testing period.
The government will have the power to monitor trials, seek reports and issue directions to ensure compliance and protect participants. At the end of a trial, it may allow the sandbox to continue under revised conditions, order its closure or permit steps towards commercial deployment in accordance with applicable laws.
For India’s cities, the framework could become relevant to the testing of telecom services that depend on reliable digital networks, although the notified rules do not identify specific technologies or urban projects. The controlled-trial model is intended to give innovators a route to test products and business models without immediately moving into full commercial deployment, while allowing authorities to define safeguards before wider use.
The rules also establish a formal process for balancing experimentation with regulatory oversight. Exemptions are not automatic: applicants must meet eligibility requirements, provide supporting material and operate within the conditions set for each sandbox. User consent, data protection, security compliance and restrictions on commercial availability remain part of the trial framework.
The Telecommunications (Regulatory Sandbox) Rules, 2026, came into force upon publication in the Official Gazette. They replace the draft Telecommunications (Regulatory Sandbox) Rules published in November 2024.
