Last August 3, the Ministry of Information and Communications Technologies (hereinafter "MinTIC") issued Decree 1448 of 2022 with the purpose of determining the general conditions and the procedure for the application of the Regulatory Sandbox, as well as those of the Sectorial Regulatory Sandbox. The former arise as alternative regulatory mechanisms based on monitored experimentation, which seek to generate innovation in any aspect of the provision of communications networks and services. Specifically, the Decree applies to Telecommunications and Sound Broadcasting Network and Service Providers and Postal Service Operators (hereinafter "Providers" and "Operators" respectively) that, through the aforementioned Sandboxes, wish to propose innovative products, services and/or solutions. Based on this, the Decree states two different options:

1. Regulatory Sandbox: An exploratory regulatory mechanism that allows Suppliers and Operators, to propose and test products, services and solutions subject to a flexible regulatory framework, or under a set of regulatory exemptions, for a limited period of time and geography, in a controlled environment.
2. Sector Regulatory Sandbox: An exploratory regulatory mechanism that applies when the products, services or solutions to be tested and proposed by suppliers and operators are subject to a regulatory framework involving two or more entities of the sector, i.e. the Ministry of Information and Communications Technologies, the Communications Regulatory Commission or the National Spectrum Agency, as appropriate.

Thus, the Decree establishes a preparation stage where the MinTIC will provide support to the Operators and/or Providers interested in submitting proposals to the corresponding Regulatory Sandbox, and where dissemination and training activities will be carried out, in order to provide additional tools to the participants.

Additionally, the Decree determines that both Sandboxes will be developed according to the following 4 phases:

1. Implementation phase: The MinTIC will publish on its website the opening of the public call for receipt of proposals, indicating the dates on which these will be received and other requirements to apply for inclusion in the corresponding Sandbox. In order to be eligible, the Operators and/or Suppliers must comply with all the requirements set forth in the call for proposals.
2. Evaluation Phase: In accordance with the number of proposals qualified in the application phase, and the object of these, the MinTIC will publish a new schedule. Based on this, the MinTIC will evaluate the different proposals in accordance with the following selection criteria:
   • Innovation: the proposal must demonstrate that it integrates an innovation with respect to the offer available in the market.
   • Benefits for citizens: the proposal must identify the benefits for citizens.
   • Demonstrated need: the proposal must show why it cannot be implemented under the current regulatory framework.
   • Proposer's experience: the proposal must demonstrate that the proposer can implement it satisfactorily.

   Once this phase is completed, the MinTIC, by means of specific and concrete administrative acts, will authorize those Operators and/or Providers to start the experimentation phase

3. Experimentation phase: Once the corresponding authorization is obtained, without prejudice to the necessary adjustments, the experimentation phase will begin and the Operators and/or Providers may begin the commercialization or use of their products, services or solutions, which will activate the information collection protocol(s) defined¹. This phase will last for twelve (12) months, counted from the authorization granted by the MinTIC, which may be extended, once only, for an equivalent period. In order to analyze the request for the extension of the term, the MinTIC will review the defined success indicators and other information collected. Additionally, one of the following scenarios must be met:
4. Exit phase: Authorized projects may opt for one of the following options to exit the Regulatory Sandbox experimentation phase:

Finally, within six (6) months after the end of the initial period of the experimentation phase, the MinTIC will publish on its website a final report with the conclusions and results of the Sandbox development, which will define the need to modify the general regulatory framework.

1.The data collection protocols shall determine the means and periodicity of data collection, the amount, confidentiality and monitoring of the data, the parties that will have access to the data collected, and other conditions to be met by the operators and/or providers.