New Delhi, November 10, 2026: The Telecom Regulatory Authority of India (TRAI) has introduced new limits on charges for internet protocol (IP)-based network interconnection, setting an annual ceiling of ₹5.6 lakh for a 1 Gbps port and ₹42.3 lakh for a 10 Gbps port.
The regulations, announced on November 9, aim to modernise India’s telecommunications infrastructure, improve transparency and support the transition from older network technologies to IP-based systems.
The revised framework will come into effect on January 1, 2027.
TRAI Announces New Interconnection Charges
The regulator introduced the changes through the Telecommunication Interconnection (Port Charges) (Third Amendment) Regulations, 2026.
The new rules establish maximum annual charges that telecom service providers can impose on other operators for using IP-based interconnection ports.
| IP Port Capacity | Maximum Annual Charge |
|---|---|
| 1 Gbps | ₹5.6 lakh |
| 10 Gbps | ₹42.3 lakh |
Telecom companies may mutually negotiate charges below these limits.
Operators can also agree on other port capacities, provided their charges are calculated transparently using the prescribed methodology.
What Is Telecom Network Interconnection?
Network interconnection allows customers of different telecom operators to communicate with one another.
For example, when a Jio customer calls an Airtel customer, their networks must exchange communication traffic through interconnected systems.
A network interconnection port provides a technical connection through which this traffic passes between operators.
TRAI’s regulations govern the charges associated with these interconnection facilities.
The ₹5.6 lakh cap is an annual business-to-business network charge, not a new fee for mobile customers.
TRAI Pushes Modernisation of Telecom Networks
India’s telecom industry has traditionally relied on older E1 and Time Division Multiplexing (TDM) technologies for network interconnection.
However, modern telecommunications increasingly use internet protocol-based systems, which can support greater capacity and more efficient network operations.
TRAI has revised its framework to recognise both older E1 ports and modern IP ports.
The new regulations are intended to support the industry’s transition towards more advanced network infrastructure.
Uniform Charges Across Telecom Services
The new IP-port charges will apply uniformly across several telecommunications services, including mobile networks, fixed-line services, national long-distance networks and international long-distance services.
Existing port charges will continue to apply to legacy E1 connections.
The uniform approach is intended to improve consistency and transparency between telecom operators.
Penalties for Violating TRAI Rules
TRAI has also introduced a graded financial disincentive framework to encourage compliance.
Specified regulatory violations can attract financial disincentives of up to ₹15 lakh per service area for each instance of contravention.
The framework is designed to ensure that operators follow the prescribed interconnection requirements and reporting obligations.
New Regulations Effective January 1, 2027
The revised regulations will take effect at the beginning of 2027, giving telecom operators time to review existing agreements and prepare for implementation.
The changes follow consultations with industry stakeholders that began in April 2025.
TRAI received responses from telecom companies and other stakeholders before finalising the amendments.
The regulator expects the new framework to support fair competition, technological modernisation and more efficient communication between networks.
Will Mobile Users Benefit?
The changes primarily concern charges paid between telecom companies rather than retail mobile tariffs.
The new framework could support more efficient network operations and encourage investment in modern infrastructure.
However, TRAI has not announced any direct reduction in mobile recharge prices or consumer call charges as a result of these regulations.
Any effect on retail pricing would depend on decisions taken by individual telecom operators.
TRAI Takes Important Step Towards Modern Telecom Infrastructure
The introduction of IP-based interconnection charge limits represents a significant regulatory development for India’s telecommunications sector.
By setting annual ceilings of ₹5.6 lakh for 1 Gbps ports and ₹42.3 lakh for 10 Gbps ports, TRAI aims to create a more transparent and consistent framework for network operators.
The regulations will become effective on January 1, 2027, supporting India’s transition towards more modern telecommunications technology.
Sources: Telecom Regulatory Authority of India, Press Information Bureau, November 9, 2026; Hindustan Times and The Financial Express, November 10, 2026
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