TRAI sets port charge ceilings for IP-based interconnection, effective Jan 2027

The Telecom Regulatory Authority of India (TRAI) has introduced annual charge ceilings for IP-based telecom interconnection ports, setting the maximum charge at Rs 5.6 lakh for a 1 Gbps port and Rs 42.3 lakh for a 10 Gbps port. The new rules will come into effect from January 1, 2027.

The decision is part of TRAI’s effort to modernise India’s telecom interconnection framework and bring existing regulations in line with changing network technologies. The new framework will apply uniformly to fixed-line, mobile, national long-distance and international long-distance services.

Telecom operators will have the flexibility to negotiate charges below the prescribed ceilings. They can also mutually agree on port capacities other than 1 Gbps and 10 Gbps, provided the charges are calculated transparently using the same methodology.

Key Highlights

• TRAI has capped annual charges at Rs 5.6 lakh for a 1 Gbps IP port.
• The annual ceiling for a 10 Gbps IP interconnection port is Rs 42.3 lakh.
• The new regulations will become effective from January 1, 2027.
• The prescribed ceilings apply across fixed-line, mobile and long-distance telecom services.
• Operators can negotiate lower charges, while violations of specified provisions may attract financial disincentives of up to Rs 15 lakh per service area for each instance.

TRAI Introduces New Rules for IP Interconnection Port Charges

TRAI released the Telecommunication Interconnection (Port Charges) (Third Amendment) Regulations, 2026, on November 9. The amendment introduces a dedicated framework for charges associated with Internet Protocol (IP)-based interconnection ports.

Telecom interconnection allows different service providers to connect their networks so that customers can communicate across operators. For example, a mobile subscriber on one network must be able to make calls to someone using another telecom network. Interconnection infrastructure makes this exchange of traffic possible.

Under the existing regulatory framework, port charges were primarily designed around legacy E1 or Time Division Multiplexing (TDM) technology. TRAI has now updated the definition of a port to recognise both traditional E1 ports and modern IP ports, with bandwidth expressed in Mbps or Gbps.

The regulator said the amendment aims to maintain a transparent and relevant framework for interconnection as telecom networks adopt newer technologies.

Annual IP Port Charge Ceiling: 1 Gbps vs 10 Gbps

The new regulations prescribe two annual charge ceilings for IP-based interconnection ports. These limits establish the maximum charges that an interconnection provider can levy under the prescribed framework.

• 1 Gbps IP port: Maximum annual charge of Rs 5.6 lakh.
• 10 Gbps IP port: Maximum annual charge of Rs 42.3 lakh.

These amounts are annual ceilings rather than mandatory fixed charges. Telecom operators can mutually negotiate lower rates depending on their commercial arrangements and interconnection requirements.

The framework also allows operators to agree on port capacities other than the two specified categories. In such cases, charges must be determined transparently using the same methodology applied to 1 Gbps and 10 Gbps ports.

New Charges Apply Across Fixed-Line, Mobile and Long-Distance Services

TRAI has prescribed uniform treatment of IP-port charges across different categories of telecom services. The new ceilings will apply to fixed-line, mobile, national long-distance and international long-distance services.

This means the regulatory framework will not prescribe separate IP-port charge ceilings for these service categories. Instead, the same annual limits and charging methodology will govern IP-based interconnection ports across the specified services.

The earlier charges under the existing regulations will continue to apply only to legacy E1 ports. This distinction allows the regulatory framework to accommodate both traditional and newer interconnection technologies.

Why TRAI Is Updating Telecom Interconnection Regulations

India’s telecom networks have evolved considerably, making it necessary to update regulations that were designed around older infrastructure. Traditional E1/TDM-based interconnection uses dedicated circuit-based technology, while IP-based interconnection uses Internet Protocol networks to exchange telecom traffic.

TRAI’s broader regulatory review began with a pre-consultation paper issued in April 2025, followed by a consultation paper in November 2025. The regulator also conducted an Open House Discussion on January 28, 2026, to gather stakeholder feedback.

According to the Ministry of Communications, 17 stakeholders submitted comments and nine submitted counter-comments during the consultation process. TRAI considered these responses before finalising the amended port charge regulations.

The earlier regulatory framework governing port charges was last revised in 2012. Introducing specific ceilings for IP ports updates the charging structure to reflect modern telecom network requirements.

TRAI Introduces Financial Disincentives for Violations

Alongside the new charging framework, TRAI has introduced a graded financial disincentive mechanism to encourage compliance with specified provisions of the regulations.

The financial disincentive is capped at Rs 15 lakh per service area for each instance of contravention. The graded approach provides a regulatory mechanism for addressing violations of the specified requirements.

The measure is intended to support transparency and ensure that telecom service providers follow the prescribed interconnection rules. It also reinforces the regulator’s focus on effective interconnection arrangements and fair competition.

What the New TRAI Rules Mean for Telecom Operators

The revised framework provides telecom operators with clearer limits for negotiating charges associated with IP-based interconnection. By setting annual ceilings, TRAI has established a common regulatory reference for service providers and companies seeking network interconnection.

The flexibility to negotiate lower charges also means that operators are not required to pay the maximum prescribed amount in every agreement. Commercial negotiations can continue within the limits established by the regulator.

Uniform charges across fixed-line, mobile and long-distance services may also simplify the regulatory treatment of IP ports. At the same time, operators will need to ensure that their interconnection agreements comply with the new provisions before they take effect.

When Will the New IP Interconnection Port Charges Take Effect?

The Telecommunication Interconnection (Port Charges) (Third Amendment) Regulations, 2026, will become effective on January 1, 2027. Telecom service providers will need to follow the revised framework from that date.

The amendment forms part of TRAI’s wider effort to modernise India’s telecom interconnection system, including the transition towards IP-based networks. Under separate interconnection amendments released earlier in November 2026, all new interconnections established from January 1, 2027, will have to be IP-based, while existing E1/TDM-based points of interconnection will be migrated to IP-based systems in a phased manner over three years.

With the new port charge ceilings, TRAI has addressed an important commercial aspect of this technological transition. The framework establishes maximum annual charges, allows mutually agreed lower rates and introduces financial disincentives for specified violations, providing telecom operators with updated rules for IP-based network connectivity.