ET Explainer: What's a regulatory sandbox? How it spurs innovation

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Key Points

The Telecommunications Act, 2023, has called for the introduction of regulatory sandboxes (RSs) for testing new communications technologies and driving innovation..

Rigorous live testing in a sandboxing environment is also expected to help telcos and tech companies spot glitches before launching new products commercially..

A regulatory sandbox is a government-backed live testing environment where companies can safely experiment with new, untested telecom and tech products/services for a specific period..

During such pre-launch live testing of products/services before a limited group of people, the government can, typically, relax the regulatory drill that companies would need to meet at a commercial launch of products/services for the wider market...

In a vibrant sandboxing environment, tech startups and SMEs can gain access to mentorship, funds, and technical resources to comprehensively test and develop compelling, commercially viable 5G/6G apps, use cases..