TRAI issued new rules on Monday to cap annual fees for IP-based telecom interconnection ports starting January 1, 2027. The regulator set a maximum charge of ₹5.6 lakh for 1 Gbps ports and ₹42.3 lakh for 10 Gbps ports. These changes aim to ensure better call quality and seamless network connectivity.
TRAI regulates IP-based telecom interconnection charges, capping annual fees to ensure seamless public utility communications starting January 2027.
New Delhi: The Telecom Regulatory Authority of India (TRAI) on Monday issued the Telecommunication Interconnection (Port Charges) (Third Amendment) Regulations, 2026, creating a standardized public utility framework for Internet Protocol (IP)-based interconnection port charges. Effective from January 1, 2027, the updated regulations establish maximum annual fee caps of ₹5.6 lakh for 1 Gbps IP ports and ₹42.3 lakh for 10 Gbps IP ports. Designed to replace outdated 2012 benchmarks for legacy circuit-switched systems, the public utility measure ensures seamless cross-network routing, protects service quality across fixed-line and mobile networks, and prevents excessive wholesale costs from destabilizing consumer connectivity.
"Interconnection in telecommunications refers to the technical, operational, and commercial arrangements that connect two or more telecom networks, allowing telecommunications traffic to flow between them and enabling users of different service providers to communicate seamlessly," the statement said.
TRAI initiated a review of the regulatory framework through a Pre-Consultation Paper to ensure that the existing regulatory framework governing interconnection matters remains relevant, transparent, and conducive to efficient interconnection between service providers.
Under the amended framework, the definition of a port has been revised to include both legacy E1 ports with a capacity of 2.048 Mbps and IP ports, with bandwidth measured in Mbps or Gbps. The regulations prescribe annual ceiling charges of Rs 5.6 lakh for a 1 Gbps IP port and Rs 42.3 lakh for a 10 Gbps IP port.
The regulation also increased flexibility in interconnection arrangements. Interconnection providers and seekers may mutually agree to charges below the prescribed ceilings. They may also mutually agree to IP-port capacities other than 1 Gbps and 10 Gbps, with charges determined transparently using the same methodology as for 1 Gbps and 10 Gbps ports. Section 11(1)(b) of the TRAI Act, 1997 empowers TRAI to prescribe the terms and conditions of interconnection between service providers, and to ensure technical compatibility and effective interconnection between different service providers, the statement noted.
The Telecommunication Interconnection (Port Charges) Regulation, 2001 prescribes the charges payable by an interconnection seeker to an interconnection provider for terminating interconnection links at its point of interconnection. The extant regulations were based on legacy E1/TDM-based port technologies, and the charges prescribed therein were last revised in 2012.