Consultation Paper on Encouraging Innovative Technologies, Services, Use Cases, and Business Models through Regulatory Sandbox in Digital Communication Sector

Telecom Regulatory Authority of India has issued a Consultation Paper on Encouraging Innovative Technologies, Services, Use Cases, and Business Models through Regulatory Sandbox in Digital Communication Sector. Sandboxing framework for digital communication sector in India aim to strike a balance between encouraging innovation and managing risk, while also promoting competition and protecting consumers. The scope of the framework may cover a range of issues, including data privacy and security, interoperability, consumer protection, transparency, confidentiality and regulatory compliance.

Some key considerations for the framework could include:

1. Eligibility criteria: The framework may clearly define the eligibility criteria for participation in the sandbox. This may include factors such as the size and stage of the company, the nature of the innovation being tested, and the potential impact on consumers.
2. Essential Conditions: The framework may clearly define the conditions an applicant has to meet to qualify for testing in a sandbox environment.
3. Approval Process: The framework may clearly define the complete approval process to be followed by companies.
4. Oversight: The framework may clearly define the structure of oversight mechanisms to ensure properly conduct of sandbox testing.
5. Risk management: Companies participating in the sandbox may be required to develop and implement robust risk management strategies, including measures to protect consumer data and mitigate potential harm to consumers. Licensor/Regulator should work closely with companies to ensure that these strategies are effective and sufficient.
6. Reporting and evaluation: Companies participating in the sandbox may be required to report regularly on their progress and the outcomes of their testing. Licensor/Regulators may use this information to evaluate the effectiveness of the sandboxing framework and make improvements as necessary.
7. Exit from sandbox: Companies participating in the sandbox may be required to clearly define how they plan to exit from testing environment in orderly manner.