The Telecom Regulatory Authority of India (TRAI) has issued its response to the Department of Telecommunications (DoT) ‘s back-reference on the recommendations it made in April 2024 regarding the “Encouraging Innovative Technologies, Services, Use Cases, and Business Models through Regulatory Sandbox in Digital Communication Sector’.
Earlier, DoT, through a reference dated March 10, 2023, inter alia requested TRAI, under Section 11(1)(a) of the TRAI Act, 1997, to provide recommendations on the framework for a regulatory sandbox for emerging technologies, services, and business models in the telecom sector. After a detailed consultation with stakeholders, TRAI provided its recommendations. Subsequently, DoT, through a back-reference dated March 19, 2025, asked TRAI to reconsider its recommendations.
In its response, TRAI reaffirmed the importance of creating a regulatory sandbox to encourage innovation in emerging technologies such as 5G, IoT, AI-based communication services, and satellite communications. The sandbox would allow telecom service providers, startups, and other stakeholders to experiment with new technologies and services within a controlled and flexible regulatory environment.
“The Central Government may, for the purposes of encouraging and facilitating innovation and technological development in telecommunication, create one or more regulatory sandboxes, in such manner, and for such duration, as may be prescribed,” the Authority said.
TRAI addressed the concerns raised by the DoT, emphasizing the need to balance innovation with consumer protection, security, and quality of service standards. It refined its proposed framework to ensure effective oversight during sandbox trials and seamless coordination among stakeholders.
The Authority, in one of the recommendations, mentioned that any licensed telecom service provider (TSP), called Principal Applicant, shall be eligible for testing in the regulatory sandbox subject to fulfilment of laid down conditions.
The other entities, called Applicant, willing to utilize the sandboxing facilities of any licensed service provider may engage with Principal Applicants. In case licensed service providers are applying in their own capacity they need to fulfil conditions meant for Principal Applicant and Applicant both. The Applicant can also apply for testing in the regulatory sandbox provided they attach an in-principal approval/consent from the Principal Applicant indicating the latter’s consent to test the products on their network.
“In cases where Applicant does not require to utilize the sand-boxing facilities of any licensed service provider or the product of ‘Applicant’ does not necessitate associating with a Principal Applicant, the Applicant can directly apply to the Licensor. In cases where the Applicant is considering to utilize the sand-boxing facilities of any licensed service/ network provider but unable to secure consent of a Principal Applicant on reasonable terms for association, the Applicant can apply directly with Licensor attaching the documents showing efforts made for tying up with a Principal Applicant. After due evaluation of such applications, the deserving innovations that may have widespread impact on society, economy and technology, the licensor will have a right to mandate RS testing on a TSP’s network.”
The permission granted under the regulatory sandbox will have a validity period of up to 24 months for the Principal Applicant / Applicant to test its product. At the end of the validity period, Principal Applicant / Applicant will stop testing of the product. Commercial usage of the product tested by Principal Applicant /Applicant in the RS will not be allowed during the RS validity period, TRAI said.