TRAI Seeks Inputs on Regulatory Sandbox Framework for the Digital Communication Sector

We missed this earlier: On June 19, the Telecom Regulatory Authority of India (TRAI) released a consultation paper on the implementation of a regulatory sandbox in the digital communication sector. The authority has requested that stakeholders should send in their comments on the paper by 17 July 2023, and counter-comments by 1 August 2023. What is a regulatory sandbox?  A regulatory sandbox is a way of testing innovative technologies that may not be fully compliant with the existing legal/regulatory framework. This helps identify any potential issues the technologies may have before their commercial deployment, reducing the risk of costly mistakes.   Why it matters: According to what TRAI says, a regulatory sandbox would allow telecom companies to innovate and test new products and services in a controlled environment. Such a sandbox will give companies access to live customers and real-time data all while exempting them from meeting regulatory or licensing requirements. It says that such a sandbox is especially essential for the success of 5G/6G given that their deployment would require close coordination with regulators and other stakeholders like Municipalities, Power Distribution Companies, State and Central Ministries, etc, which the sandbox can facilitate.  It is important to note that authorities such as the Reserve Bank of India (RBI), the Securities and Exchange Board of India (SEBI) and the Insurance Regulatory and Development Authority of India (IRDAI) have also created sandboxes for facilitating innovation their respective sectors in the past.  Important observations from the consultation paper: Oversight of the regulatory sandbox: The…