TRAI recommends allowing only Indian entities to participate in regulatory sandbox

The Telecom Regulatory Authority of India (TRAI) has recommended that only Indian nationals or entities should be eligible to participate in telecom regulatory sandboxes that can provide real-time but regulated access to networks and customer resources during product or technology tests. The Telecommunications Act, 2023, has introduced the provision of setting up multiple regulatory sandboxes that will emphasise on testing of new products, services, processes and business models in a live testing environment on a limited set of users for a specified period of time after obtaining certain regulatory relaxations.

TRAI recommended that the Department of Telecom shall put in place an end-to-end digital process to handle RS applications and all related activities, including intimations, approvals, sharing of information, monitoring, reporting requirements, etc.

"Only Indian nationals or entities will be eligible," TRAI said in its recommendation on "Encouraging Innovative Technologies, Services, Use Cases and Business Models through Regulatory Sandbox in Digital Communication Sector".

The regulator also suggested a non-refundable processing fee of ₹10,000 for the applications.

During the testing period, the applicants will need to demonstrate in application ways to prioritise the protection of consumer interests and prevent any harm to consumers. The regulator has recommended that only such customers will be allowed to be onboarded who have given specific consent voluntarily.

"Customer onboarding and private/public data processing should align with the provisions of the Digital Personal Data Protection Act, 2023 and any applicable rules, regulations or orders issued under this Act," TRAI suggested.