The Telecom Regulatory Authority of India (TRAI) has released its recommendations on encouraging innovative technologies, services, use cases, and business models through a regulatory sandbox in the digital communication sector. The Department of Telecommunications requested TRAI’s recommendations regarding a regulatory sandbox framework for new services, technologies, and business models in the digital communication industry. The TRAI published a Consultation Paper (CP) on June 19, 2023, inviting feedback from stakeholders.
Regulatory Sandbox (RS) provides real-time but regulated access to telecom network and customer resources, something that is not possible in conventional lab testing or pilots. Specific and generic exemptions in regulations are granted for testing of new ideas. Regulatory bodies in many countries have established such sandbox frameworks, and providing such a framework for live testing in India will encourage more entrepreneurs to develop solutions for the digital communication industry of the country and the world.
The Central Government has made provisions in the Telecommunication Act’ 2023 to encourage and facilitate innovation and technological development in telecommunication. The DoT issued guidelines on 11.03.2024 to establish and operate ‘Spectrum Regulatory Sandbox’ (SRS) or ‘WiTe Zones (Wireless Test Zones)’ to promote R&D activities, outdoor testing/experimentation in the field of emerging new radio communications technologies. However, these guidelines do not provide for any connectivity with PSTN/Public commercial network/satellite, for the purpose of testing/Research & Development (R&D). Beyond offline/laboratory/WiTe Zone testing, there will be a requirement for testing the products in actual live network environments.
Based on the reference received from DoT, stakeholder feedback, and in line with the definition of Regulatory Sandbox as provided in the Telecommunication Act’ 2023, the Authority has finalized its recommendations. The recommendations outline all relevant components in detail and offer a comprehensive framework for conducting Sandbox testing for the Digital Communication sector.
The recommended RS framework for Digital Communication sector details the qualification to take part in the RS testing, essential requirements that participants must meet, supporting paperwork needed to demonstrate eligibility, the application, evaluation & approval procedure, the authority to waive or amend rules, validity period, procedures for authorization revocation, and reporting requirements. Indian companies, partnership firms, limited liability partnerships, or research institutes who have done limited prior testing of their products/services/applications and meet all conditions mentioned in the framework can apply for regulatory sandbox testing.
The regulatory framework includes clear documentation requirements and application, evaluation & approval procedures to ensure transparency throughout the RS process. A detailed reporting mechanism has been defined to monitor the progress and outcomes of regulatory sandbox testing effectively. The framework provides for using cross-sector cooperation in carrying out RS testing with the help of other ministries and agencies. By providing a RS framework that enables various digital communication sector entities to work together in a structured manner, these recommendations are expected to synergize the efforts of innovators, startups, telecommunications companies, government agencies, and regulators to boost innovation and start-up ecosystems.
The recommendations have been placed on TRAI’s website www.trai.gov.in. For any clarification/information, Shri Sanjeev Kumar Sharma, Advisor (Broadband and Policy Analysis), TRAI may be contacted at Tel. No. +91-11-23236119.
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SOURCE : PIB
