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A company may develop a new telecom product or technology, but before bringing it to the market, it needs to know whether the product works properly, how it performs under actual conditions and which government permissions apply. Testing a new telecommunications technology is not always simple, especially when it involves radio frequencies, telecom networks or real users.
To provide a legal framework for such testing, the Department of Telecommunications (DoT), under the Ministry of Communications, notified the Telecommunications (Regulatory Sandbox) Rules, 2026, on 21 October 2026. The rules came into force on the same date and allow the Central Government to create controlled environments where eligible businesses and researchers can test telecommunications innovations under specified conditions.
The framework is relevant to telecom startups, technology developers, equipment manufacturers, research institutions and other eligible applicants. Depending on the testing arrangement, the government may permit certain regulatory relaxations for a limited period. However, receiving approval does not mean that a company can ignore other applicable laws or immediately sell the product commercially.
For businesses planning telecom innovation testing in India, understanding the eligibility criteria, telecom regulatory sandbox application process, government fees, testing restrictions and reporting requirements is important before submitting a proposal.
| Particular | Details |
| Issuing authority | Ministry of Communications, Department of Telecommunications |
| Notification number | G.S.R. 905(E) |
| Notification date | 21 October 2026 |
| Rules notified | Telecommunications (Regulatory Sandbox) Rules, 2026 |
| Governing law | Telecommunications Act, 2023 |
| Effective date | 21 October 2026 |
| Main purpose | Controlled testing of telecom innovations |
| Application processing fee | Rs 10,000, non-refundable |
| Initial sandbox validity | Not exceeding 24 months |
| Extension | Further periods not exceeding 12 months at a time, subject to conditions |
| Application and implementation portal | DoT Telecom eServices Portal |
| Relevant businesses | Eligible telecom companies, technology developers, research institutions and other applicants |
The Central Government has separately notified the Telecom eServices Portal for digital implementation of these rules through S.O. 5737(E), dated 21 October 2026.
Important: The rules do not make sandbox approval mandatory for every telecom company. They establish a framework for businesses and other eligible applicants that wish to propose or participate in permitted testing activities.
A telecom regulatory sandbox is a controlled testing environment where approved technologies, services, products, processes or business models can be tested for a specified period.
The idea is to allow testing while keeping appropriate limits on what can be done, who can participate and what regulatory conditions must be followed.
Section 27 of the Telecommunications Act, 2023, provides the legal basis for creating regulatory sandboxes. The 2026 Rules explain how the government may establish them, consider proposals and manage testing activities.
Why Is a Regulatory Sandbox Important for Telecom Businesses?
Telecommunications technologies often require technical testing before they are ready for wider use. Some may involve wireless communication, network infrastructure, new equipment or different methods of delivering services.
Such activities can also raise questions about regulatory authorisations and the use of telecommunications resources.
The regulatory sandbox framework allows the government to consider controlled testing arrangements and specify appropriate conditions. It also provides a way to evaluate innovative technologies without automatically treating experimental testing as unrestricted commercial activity.
For businesses, the main advantage is having a defined legal route to propose testing. Whether the proposed activity will be approved depends on its eligibility and the government's assessment.
The Telecommunications (Regulatory Sandbox) Rules, 2026, operate under the Telecommunications Act, 2023.
The Act regulates telecommunications services, networks, spectrum-related matters and other activities covered by its provisions.
The regulatory sandbox rules add a specific framework for innovation testing. They describe how a sandbox may be created, who may submit proposals, what conditions can be imposed and how the government can supervise testing.
Role of the Department of Telecommunications
The Central Government is responsible for creating and specifying regulatory sandboxes.
Under Rule 4, it may establish a sandbox on its own initiative after assessing the need for one. It may also consider a proposal submitted by an eligible applicant.
The government can examine the proposal, request additional information and decide whether to accept or reject it.
After creating a sandbox, it may specify the permitted activities, participant eligibility, testing conditions, reporting requirements and validity period.
Role of TRAI in Regulatory Exemptions
The Telecom Regulatory Authority of India (TRAI) also has a role when certain regulatory exemptions are considered.
Under Rule 5, where an exemption concerns the applicability of provisions of the TRAI Act, 1997, the government must consult TRAI before specifying the exemption.
This is important because sandbox approval is not a blanket relaxation of telecom laws. The applicable exemption must be expressly permitted within the relevant framework.
From the 2024 Draft to the Final 2026 Rules
The Department of Telecommunications issued the draft Telecommunications (Regulatory Sandbox) Rules, 2024, under G.S.R. 736(E) on 27 November 2024. Stakeholders were given the opportunity to submit objections and suggestions. The final rules were notified later under G.S.R. 905(E), dated 21 October 2026, after the submissions were considered.
Unlike the earlier draft, the 2026 notification is an operative legal instrument.
The rules create a formal process for proposing, approving, operating and monitoring telecom regulatory sandboxes in India.
They cover several important areas, from applicant eligibility to the conditions for ending a testing project.
Government Approval for Controlled Testing
The government may create one or more regulatory sandboxes according to the need for telecommunications innovation testing.
Applicants can submit proposals for consideration. However, the government retains the authority to decide whether a proposed sandbox should be created.
Businesses should therefore distinguish between preparing a proposal and receiving permission to undertake the proposed activities.
Testing Conditions for Telecom Technologies
Each sandbox can have its own terms and conditions.
These may cover the technologies being tested, participating organisations, testing boundaries, risk-management arrangements, reporting requirements and the period for which testing is permitted.
The conditions may differ according to the technology and testing objectives.
Limited Regulatory Relaxations
The framework allows the government to specify certain exemptions from applicable regulatory requirements during testing.
These exemptions are conditional. A business cannot assume that every requirement under the Telecommunications Act or related regulations has been relaxed.
Government Monitoring and Reporting
Approved applicants must follow the conditions specified for their sandbox.
They must also maintain appropriate testing controls and provide information to the government when required.
The government may monitor the project, evaluate its performance and issue directions for compliance and the protection of participants and users.
Eligibility is one of the first matters a business should check before preparing a telecom regulatory sandbox application.
Rule 2 defines the categories of applicants who may submit proposals under Rule 4.
These include:
Being included within an applicant category does not guarantee approval. The proposal must still undergo government examination.
Eligibility for Telecom Startups and Technology Companies
Startups developing telecommunications products or services may be interested in the framework.
However, the notification does not create a separate category that automatically qualifies every startup.
An applicant must satisfy one of the recognised eligibility categories and comply with any further requirements relevant to the proposed sandbox.
Businesses should also establish whether the technology they want to test falls within the scope of a suitable sandbox.
Eligibility for Research and Development Institutions
The rules also cover research and development institutions approved by the Department of Science and Technology. These institutions can submit proposals to test telecommunications innovations in a regulatory sandbox, provided they meet the eligibility criteria and other conditions set out in the rules.
This is relevant to organisations involved in telecommunications research, testing and technological development.
These terms may appear similar, but the rules assign them different meanings.
| Category | Meaning | Main Responsibility |
| Applicant | Eligible person or organisation that submits a proposal | Preparing and submitting the proposal |
| Approved applicant | Applicant approved to create, operate or manage the sandbox | Managing testing and ensuring compliance |
| Participant | Entity or person meeting the sandbox's participation criteria | Following the applicable testing conditions |
| Test user | Person voluntarily participating in testing | Participating with prior consent |
The distinction matters because the approved applicant is responsible for several compliance arrangements, including ensuring that participants follow the conditions specified for the sandbox.
Can Foreign Companies Apply?
The applicant definition covers specified Indian entities, Indian nationals and recognised research institutions.
It does not expressly provide unrestricted applicant eligibility to all foreign companies.
Whether a foreign business can participate through an eligible Indian entity, or another permitted arrangement must be assessed under the relevant sandbox conditions and applicable laws.
Foreign technology developers should establish their legal eligibility before planning testing activities in India.
Rule 4 explains how a regulatory sandbox may be proposed and considered.
The Central Government may create a sandbox independently or after accepting a proposal submitted by an applicant.
A business wishing to propose a sandbox should first identify what needs to be tested and why a controlled regulatory environment is required.
Step 1: Identify the Technology or Service
The applicant should clearly identify the telecommunications service, network, equipment, process, product or business model proposed for testing.
The proposal should explain its purpose and the nature of the testing required.
A clear technical description can help the authority understand the proposed activity.
Step 2: Review Earlier Testing Results
Rule 4 refers to reports of limited testing already conducted in offline or laboratory environments.
Where other testing has been undertaken, including testing in experimental isolated networks, the relevant reports must also be considered.
The proposal should accurately describe the testing evidence available.
Step 3: Identify Required Regulatory Exemptions
Applicants must identify any exemptions from authorisation, assignment or other relevant provisions that may be needed for the sandbox.
This is an important part of the proposal because regulatory relaxations are not automatic.
The proposed exemptions should be connected to the actual testing requirements.
Step 4: Prepare and Submit the Proposal
The proposal must be submitted in the form and manner specified through the relevant government portal, accompanied by the required information and fee.
The exact portal workflow should be checked before submission.
Step 5: Government Examination
After receiving the proposal, the Central Government may examine its eligibility, and request additional information.
Applicants must provide the required details to support the examination.
Step 6: Acceptance or Rejection
The government may accept or reject the proposal following its examination.
An applicant should not begin testing that requires sandbox approval merely because the proposal has been submitted or the processing fee has been paid.
The rules identify certain supporting reports and information for applicants.
The exact application documentation may also depend on instructions specified by the government.
| Documents or Information | Why they Matter |
| Laboratory or offline testing reports | Show the results of limited testing already carried out |
| Other available testing reports | Provide evidence of additional testing, including experimental isolated-network testing |
| Details of requested exemptions | Identify regulatory requirements that may need relaxation |
| Additional government-specified information | Support examination of the proposal |
| Processing fee | Meet the statutory proposal-submission requirement |
Applicants should avoid preparing a generic registration file without reviewing the relevant requirements.
Because the proposal concerns technology testing, the technical information and proposed testing scope are particularly important.
Under Rule 4(2)(e), the prescribed processing fee for submitting a telecom regulatory sandbox proposal is Rs 10,000.
The amount is non-refundable.
This is a government processing fee. It should not be confused with the total cost of developing, operating or managing a telecom testing project.
Other expenses may arise from technology development, testing arrangements, technical documentation or professional services. The 2026 rules do not prescribe one fixed overall project cost.
Is the Application Fee Refundable?
The Rs 10,000 proposal processing fee is expressly non-refundable.
Rule 10 also provides that fees or charges paid in connection with approval to operate and manage a sandbox will not be refunded where the approval is suspended, curtailed, revoked or varied.
Businesses should therefore review the requirements carefully before submitting a proposal.
Rule 5 allows the government to specify the scope of testing for a particular regulatory sandbox.
The framework can cover telecommunications services, networks, equipment, technologies, products, processes and business models.
However, inclusion within one of these broad categories does not mean that every proposed innovation is automatically permitted.
Telecommunications Services and Networks
A sandbox may cover permitted testing of telecommunications services or network arrangements.
The approved scope will determine the activities that can be undertaken and the conditions that must be followed.
Telecom Equipment and Technology Development
Manufacturers and technology developers may find the framework relevant where they need controlled testing of eligible telecommunications equipment, or products.
Before testing, they should check the applicable authorisation conditions and whether any separate equipment compliance requirements apply.
Innovative Processes and Business Models
The rules also recognise innovations that involve telecommunications processes or business models.
This means a testing proposal does not necessarily have to involve the development of new hardware.
The government may consider an eligible process or business model where it falls within the permitted sandbox framework.
One of the most important features of the rules is the possibility of obtaining limited exemptions from specified regulatory requirements.
Under Rule 5(1)(e), the government may grant exemptions relating to authorisation, assignment or other relevant provisions under the Telecommunications Act, 2023, its rules, the TRAI Act, 1997, or regulations made under that Act.
Are Exemptions Automatically Available?
No.
The government must specify the exemptions permitted for the relevant sandbox.
Their scope and validity depend on the sandbox conditions.
Businesses should not assume that receiving sandbox approval allows them to undertake activities beyond the approved testing arrangement.
Does Sandbox Approval Replace Telecom Licensing?
Sandbox approval and ordinary telecom authorisation serve different purposes.
A sandbox is intended for controlled testing. Commercial telecommunications activities may remain subject to separate authorisation requirements.
A business planning to offer the tested service commercially must assess the applicable laws before doing so.
Are Telecom Equipment Certifications Still Required?
Equipment compliance must be considered under the relevant equipment regulations, not only the sandbox rules.
For example, Rule 9 of the Telecommunications (Framework to Notify Standards, Conformity Assessment and Certification) Rules, 2025, provides a conditional conformity-assessment exemption for certain telecommunications equipment imported into India for research and development, demonstration or sample testing, including through a regulatory sandbox.
That exemption is subject to the relevant testing rules and procedures. It does not automatically remove every import, wireless or other regulatory requirement.
Manufacturers and importers should therefore assess the precise product, intended use and applicable exemption conditions.
The testing period is an important consideration for businesses preparing projects.
Rule 5(2) provides that the validity period of a regulatory sandbox must not exceed 24 months.
This is the maximum initial period permitted under the rules. An individual sandbox may be approved for a shorter duration.
Can the Validity Period Be Extended?
Yes, the Central Government may extend the period where it considers an extension necessary.
The rules permit further periods not exceeding 12 months at a time.
An extension is subject to the applicable conditions and government decision.
Where an approved applicant requests an extension under Rule 5, the request must be submitted at least 30 days before the validity period expires.
The applicant must explain the justification and purpose of the proposed extension.
Rule 8 also provides for government decisions concerning continuation of sandbox activities.
| Requirement | Prescribed Period |
| Initial validity | Not exceeding 24 months |
| Extension period | Not exceeding 12 months at a time |
| Extension request under Rule 5 | At least 30 days before expiry |
| Comprehensive final report | Within 15 days of testing completion, or at least 30 days before sandbox expiry, as applicable |
| Record retention | At least one year after validity expiry, or longer if directed |
These timelines should be considered when preparing a testing plan, assigning responsibilities and arranging records.
Rule 6 places important obligations on approved applicants.
A sandbox may involve several participants, but the approved applicant remains responsible for establishing arrangements to ensure that the specified terms are followed.
This helps keep the project within its permitted testing scope.
They may also be required to submit additional reports, records or explanations during government monitoring.
This makes it important for applicants to understand their responsibilities before undertaking a project involving multiple organisations.
Testing telecommunications technologies may involve users, personal information and sensitive technical data.
The rules establish safeguards for these activities.
Prior Consent of Test Users
Where a sandbox involves enrolling test users, the approved applicant must ensure that users are informed about the purpose and scope of testing.
Their consent must be obtained before they participate.
Participation must be voluntary.
Rule 6 states that test users must not be charged for participation in the testing environment where the relevant sandbox involves their enrolment.
This does not mean that every expense connected with the testing project is prohibited.
It specifically concerns charging enrolled test users for their participation.
Data Protection and Security Compliance
Approved applicants must ensure that they and their participants follow applicable data-protection, security and other relevant laws when onboarding test users.
Businesses should therefore review how testing data will be collected, handled, accessed, retained and protected.
The exact obligations will depend on the information involved and the other laws that apply.
Confidentiality of Testing Information
Approved applicants must maintain confidentiality regarding sandbox activities, including testing and results.
They must also ensure that participants follow the relevant confidentiality obligations.
The government may publish general information about a sandbox without disclosing proprietary information belonging to approved applicants or participants.
The rules do not permit approved applicants to carry out testing without ongoing regulatory controls.
The government may monitor the testing environment and require information about its performance.
Restrictions on Commercial Availability
Rule 6 requires approved applicants to ensure that the telecommunications services, technologies, products, processes or business models being tested are not commercially available in the market during the testing period.
Businesses should therefore distinguish experimental testing from ordinary commercial sales or service delivery.
Government Monitoring and Evaluation
Under Rule 7, the Central Government may request reports, information, records or data from approved applicants.
It may specify the format and frequency of reporting and issue directions to protect participants, test users and compliance with the sandbox conditions.
Approved applicants must also provide physical or virtual access when required.
Where necessary, the government may seek assistance from external experts for monitoring, and evaluation.
Final Testing Report
Approved applicants must submit a comprehensive report within the period specified under Rule 7(4).
The report covers matters such as:
The report must be submitted in the form and manner specified through the applicable portal.
Record Retention and Secure Destruction
Approved applicants must retain specified testing records for at least one year after the sandbox's validity period expires, or longer where determined by the government.
These records include testing plans, methodologies, user-consent records and other relevant information.
The rules also require secure destruction of the specified data and records.
For businesses, keeping records throughout the testing period is more practical than attempting to reconstruct information when the final report becomes due.
Finishing a testing project is not necessarily the end of the regulatory process. Rule 8 allows the government to decide what should happen next after reviewing the reports and information submitted under Rule 7.
Successful testing alone does not provide automatic permission to commercially launch a telecommunications product or service.
Businesses should determine which regulatory approvals are required for their intended commercial activity.
The Central Government may suspend or revoke approval where circumstances specified under Rule 9 arise.
These include:
Is an Applicant Given an Opportunity to Be Heard?
Rule 9 provides an opportunity of being heard before suspension or revocation under the circumstances described in Rule 9(b), including false information and relevant compliance failures.
That proviso should not be treated as automatically applying to every separate ground under Rule 9.
Are Government Fees Refunded if Approval Is Cancelled?
Rule 10 provides that the applicable fees or charges will not be refunded where approval to operate and manage a sandbox is suspended, curtailed, revoked or varied.
The 2026 sandbox rules do not establish a separate universal fine amount for every possible non-compliance situation.
Any additional consequences must be assessed under the relevant legal provisions.
The rules may affect different businesses in different ways. Their practical relevance depends on whether a company develops telecommunications technology, supplies equipment, manages networks or participates in research and testing.
The framework gives eligible startups and technology developers a formal way to propose controlled testing activities.
This may help businesses planning to evaluate technologies before wider deployment.
However, applicants must be prepared to provide testing information, follow approval conditions and maintain the required compliance arrangements.
Manufacturers developing telecommunications equipment may be interested in testing their products within an approved sandbox.
They must establish whether the intended testing is permitted and whether any equipment-specific approvals or exemptions apply.
The 2026 framework should not be understood as an automatic exemption from TEC certification, WPC approvals or other relevant requirements.
Recognised research institutions may submit proposals under the eligibility provisions.
The framework is therefore relevant to eligible telecommunications research and technology-development work that may benefit from controlled testing.
Operators and infrastructure businesses may be involved in testing activities where permitted under the conditions of a sandbox.
They must consider the testing boundaries, operational arrangements and responsibilities applicable to their participation.
The framework may create opportunities for eligible businesses to propose testing arrangements for telecommunications innovations.
It may be particularly relevant where a technology requires regulatory consideration before commercial deployment.
Potential business advantages include the opportunity to conduct permitted testing in a defined environment, gather technical results and better understand the requirements for a subsequent commercial launch.
At the same time, applicants must account for practical requirements.
| Potential Opportunity | Related Business Consideration |
| Controlled testing of new technologies | Approval and sandbox-specific conditions must be satisfied |
| Possible regulatory exemptions | Exemptions must be expressly granted |
| Evaluation before market launch | Commercial approvals may still be required |
| Participation by eligible organisations | Participant eligibility and obligations must be checked |
| Technical research and development | Testing records and reports must be maintained |
| Testing involving users | Consent, data protection and safeguards must be addressed |
Businesses should weigh these factors before deciding whether to pursue a sandbox proposal.
A telecom start-up, manufacturer or technology developer considering sandbox participation should begin with an assessment of its proposed activity.
The following actions can help prepare for the process.
These are practical preparation steps. They do not all become mandatory simply because a business operates in the telecommunications sector.
Businesses developing, manufacturing or introducing telecommunications technologies in India may need professional assistance to understand which regulatory approvals apply.
The Telecommunications (Regulatory Sandbox) Rules, 2026, add another regulatory framework that eligible technology developers may need to consider.
Corpseed offers services in related areas of telecommunications equipment and wireless regulatory compliance.
TEC Certification Services
Certain categories of telecommunications equipment are subject to applicable conformity-assessment and certification requirements.
Corpseed provides TEC certification services to help businesses understand and manage relevant equipment-certification procedures.
Businesses planning to manufacture, import or deploy telecom equipment should assess their certification obligations under the applicable standards and rules.
Explore Corpseed's TEC Certification Services
WPC ETA Certification Services
Wireless equipment may be subject to requirements administered by the Wireless Planning and Coordination (WPC) Wing.
Corpseed provides WPC ETA certification assistance for relevant wireless products.
Whether a specific product requires WPC ETA, another wireless permission or qualifies for an exemption depends on its technical characteristics and proposed use.
Explore Corpseed's WPC ETA Certification Services
Experimental License Assistance
Businesses conducting certain wireless testing or research activities may also need to consider the applicable experimental licensing framework.
Corpseed provides services relating to WPC experimental licensing.
An experimental licence and regulatory sandbox approval are different regulatory arrangements. The correct requirement depends on the proposed testing activity.
Explore Corpseed's Experimental License Services
Before applying, businesses need to check which rules apply to their proposed technology. Depending on what they plan to test, they may need regulatory sandbox approval, separate regulatory permission, equipment certification, or more than one of these.
Planning to develop, test, manufacture or introduce a telecommunications product in India?
Contact Corpseed to discuss relevant telecom regulatory compliance, certification and licensing requirements for your business.
Website: www.corpseed.com
Contact: +91 75586 40644
The Telecommunications (Regulatory Sandbox) Rules, 2026, set out the conditions for testing new telecommunications technologies and services in India through regulatory sandboxes.
The rules were notified on 21 October 2026. They cover the setting up of regulatory sandboxes, the submission and review of proposals, and the conditions that approved applicants must follow while testing their innovations.
Eligible applicants must provide the required information and pay the Rs 10,000 non-refundable proposal processing fee.
A regulatory sandbox may initially remain valid for a maximum of 24 months, with extensions permitted under the applicable conditions.
Approved applicants must follow testing controls, protect users, maintain records and submit the required reports.
The framework allows conditional regulatory exemptions, but sandbox approval is not a blanket exemption from telecom laws.
Businesses planning commercial deployment after testing must determine which authorisations and compliance requirements continue to apply.
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