India notifies new telecom rules that allow time-bound exemptions to test emerging technologies

The Indian government has notified new rules that allows certain telecommunication technologies, services, products and business models to be tested in a controlled environment and exempt from certain regulatory requirements, a move that is expected to improve innovation and development in the sector.

Under the Telecommunications (Regulatory Sandbox) Rules, 2026, the government can now create regulatory sandboxes on its own initiative or approve certain proposals that have been submitted. The rules provide certain exemptions from requirements and provitions of the 2023 Telecommunications Act and the 1997 Telecom Regulatory Authority of India Act.

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A regulatory sandboc will allow new services and technology to be tested under prescribed conditions before being deployed commercially. The government can also specify the elgibility criteria for participants, measures pertaining to managing risk, scope of a trial and other matters around the testing.

The validity of a sandbox cannot exceed 24 months, although the government may grant extensions of up to 12 months at a time, subject to the prescribed conditions.

Applicants must submit proposals along with reports of preliminary testing and other required documents. A non-refundable processing fee of Rs 10,000 will apply.

The rules also prescribe safeguards for trials involving users. Participants must be informed about the purpose and scope of testing, and their prior consent must be obtained. Test users cannot be charged for participating. Approved applicants must comply with applicable data protection and security laws, maintain testing records and ensure that the products, services or technologies being tested are not commercially available during the trial.

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The government can monitor trials, seek reports and issue directions to ensure compliance and protect participants. Based on the results, it may allow a sandbox to continue under revised conditions, order its closure or permit steps towards commercial deployment in accordance with applicable laws.

The rules, which came into force upon publication in the Official Gazette, replace the draft Telecommunications (Regulatory Sandbox) Rules published in November 2024.

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