Allow only Indian entities to participate in regulatory sandbox: Trai

New Delhi: 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, sector regulator Trai recommended on Friday. The Telecommunications Act, 2023, has introduced the provision of setting up multiple regulatory sandboxes. The regulatory sandbox (RS) 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.

The Telecom Regulatory Authority of India (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 has recommended a non-refundable processing fee of Rs 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 on boarded 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.

The regulator has recommended that applicants should share details of licensing or regulatory relaxations that are sought for testing purposes and submit a clear exit strategy that outlines the process for exiting the testing phase. Trai has recommended that the oversight and governance of the RS shall be done by the National Telecommunications Institute for Policy Research, Innovation, and Training (NTIPRIT).

Further, NTIPRIT should rope in representatives from the Telecom Engineering Centre (TEC) and academic institutions, as required. Trai has recommended funding support for entities conducting trials for new technologies from "Digital Bharat Nidhi", erstwhile Universal Services Obligation Fund, for innovative products that may have significant potential to bridge the digital divide and bring socio-economic advancement to underprivileged sections but may not be able to get sufficient funding from market sources.