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8 November 2026

TRAI Caps Charges for IP-Based Links Between Telecom Networks From January 2027

New annual ceilings will govern what one telecom operator can charge another for the connection points that carry traffic between their networks. The pricing rules accompany separate changes to how operators connect their networks and register their agreements

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Key Details

TRAI’s Telecommunication Interconnection (Port Charges) (Third Amendment) Regulations, 2026 add pricing rules for Internet Protocol (IP)-based interconnection ports. They take effect on 1 January 2027.

  • Annual charge ceilings: ₹5.6 lakh for a 1 Gbps IP port and ₹42.3 lakh for a 10 Gbps IP port.

  • Commercial flexibility: Operators may agree on lower charges. They may also use other port capacities, with charges calculated transparently using the prescribed methodology.

  • Services covered: The IP-port rules apply across fixed-line, mobile, national long-distance and international long-distance services.

  • Older connections: Existing regulated charges continue to apply to legacy E1 ports.

  • Compliance: Specified breaches may attract graded financial disincentives of up to ₹15 lakh per service area for each instance.


The New Ceilings Apply Where Operators’ Networks Meet

When a customer of one telecom provider calls someone on another, traffic must pass between the two networks. An interconnection port is a connection point that provides capacity for that exchange. TRAI’s existing port-charge rules were built around older E1 technology; the new amendment recognises IP-based ports measured by bandwidth and sets maximum annual charges for two common capacities.

The ceilings are not charges paid directly by subscribers. They limit specified payments between operators while leaving room for them to negotiate lower prices.

Three Separate Amendments Address the Same Interconnection System

This is the pricing part of a wider set of TRAI changes starting on 1 January 2027. Earlier rules covered by TPE require new interconnections to use IP technology and give operators three years to migrate older links. Another amendment covered moves the register of operators’ interconnection agreements online and cuts the filing deadline from 30 to 15 days. Those technical and filing requirements are separate from today’s port-charge ceilings.


Policy Relevance

Operators now have a defined price ceiling as they plan IP-based connections and migrate older links. That could make interconnection costs more predictable, but the rules do not establish that consumer tariffs will fall or call quality will improve.

The more useful test is whether operators can agree on capacity and charges, complete the migration and keep traffic moving reliably between networks. TRAI will also need to distinguish pricing disputes from problems caused by the technical transition.


Follow the Full Press Release Here: TRAI Releases the Telecommunication Interconnection (Port Charges) (Third Amendment) Regulations, 2026

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