Centre Notifies Telecommunications (Regulatory Sandbox) Rules, 2026 for Testing New Technologies

The central government has officially notified the Telecommunications (Regulatory Sandbox) Rules, 2026. The new framework allows eligible startups, companies, researchers, and individuals to test innovative telecom technologies, services, and business models within a controlled regulatory environment.

According to the Gazette notification, the Central Government has the authority to establish regulatory sandboxes on its own initiative. Alternatively, it can approve proposals submitted by applicants, including those responding to government invitations.

The notification states that the Central Government may create and specify a regulatory sandbox on the designated portal either suo motu after assessing the need, or upon acceptance of a proposal submitted by an applicant at their own initiative or in response to a request for proposals.

To facilitate testing under specific conditions, the rules provide provisions for exemptions from certain sections of the Telecommunications Act, 2023, and the Telecom Regulatory Authority of India Act, 1997. Under the framework, a regulatory sandbox can initially operate for a period of up to 24 months.

The government retains the discretion to extend the validity of a sandbox by up to 12 months at a time, subject to specified conditions. Applicants looking to secure an extension are required to submit their requests at least 30 days before the expiration of the existing validity period. Additionally, applicants must pay a non-refundable processing fee of Rs 10,000.

The application process requires candidates to submit their requests through the designated government portal. Applicants must also provide reports detailing previous testing conducted in laboratories or controlled networks, along with required documents and a clear specification of the regulatory exemptions they seek during the testing period.

The rules place strict compliance obligations on approved applicants. Participants must obtain prior consent from all users taking part in the trials, informing them clearly about the purpose and scope of the testing. Furthermore, users cannot be charged any fees for participating in these trials.

The regulatory framework explicitly prohibits the commercial sale or availability of any technologies, services, products, and business models that are currently undergoing testing during the sandbox period.

Participating entities are also mandated to maintain comprehensive records related to the testing process. These include work plans, methodologies, user consent records, and other relevant data, which must be retained for at least one year following the expiration of the sandbox's validity. Records must be kept for a longer duration if specifically required by the Central Government.

"The introduction of the Telecommunications (Regulatory Sandbox) Rules, 2026, creates a structured pathway for early-stage innovators and startups to validate their technologies without immediate regulatory friction. By allowing controlled testing and temporary exemptions, the government is lowering entry barriers for research and development. However, founders must carefully adhere to compliance guidelines, particularly regarding user consent and the prohibition of commercial sales during the trial phase, to make the most of this sandbox environment." — Dr. Shishir Gupta, Founder & CEO, StartupLanes