The Telecom Regulatory Authority of India (TRAI) has introduced a revised framework for port charges applicable to IP-based interconnections between telecom service providers. The changes, notified under the Telecommunication Interconnection (Port Charges) (Third Amendment) Regulations, 2026, extend the existing regulatory provisions beyond legacy E1/TDM-based connections.
The amended regulations will come into effect on January 1, 2027. They establish annual charge ceilings for IP ports, provide flexibility in interconnection agreements and introduce financial disincentives for violations of specified regulatory provisions.
TRAI Sets Annual Charge Ceilings for IP Ports
The new regulations revise the definition of a telecommunications port to cover both traditional E1 ports, operating at 2.048 Mbps, and IP ports, with bandwidth measured in Mbps or Gbps.
TRAI has prescribed the following annual ceilings for IP-based interconnection ports:
- 1 Gbps IP port: ₹5.6 lakh per year.
- 10 Gbps IP port: ₹42.3 lakh per year.
Telecom service providers can mutually agree on charges below these prescribed limits. They can also negotiate IP-port capacities other than 1 Gbps and 10 Gbps, provided the applicable charges are calculated transparently using the same methodology established for the specified capacities.
The revised charges will apply uniformly across fixed-line, mobile, national long-distance and international long-distance services. Existing port charges will continue to apply exclusively to E1-based interconnections.
New Regulations Follow Stakeholder Consultation
The amendments follow TRAI’s review of the existing regulatory framework governing telecom interconnections. The authority initiated the process through a pre-consultation paper titled Review of the Existing TRAI Regulations on Interconnection Matters, issued on April 3, 2025.
The consultation sought stakeholder feedback on several regulatory provisions, including the Telecommunication Interconnection (Port Charges) Regulation, 2001. TRAI subsequently issued a consultation paper on November 10, 2025, incorporating background information and feedback received during the initial consultation.
After extending the submission period, TRAI set December 15, 2025, as the deadline for written comments and December 29, 2025, for counter-comments.
A total of 17 stakeholders submitted comments, while nine submitted counter-comments. TRAI also conducted an Open House Discussion on January 28, 2026, before finalising the amendments based on stakeholder feedback and its own analysis.
The original 2001 regulations prescribed charges payable by an interconnection seeker to an interconnection provider for terminating interconnection links at a point of interconnection. Those provisions were designed around legacy E1/TDM technology, with the prescribed charges last revised in 2012.
Graded Financial Disincentives for Regulatory Violations
The amended framework also introduces a graded system of financial disincentives to encourage compliance with the revised regulations.
Under the provisions, the financial disincentive will be capped at ₹15 lakh per service area for each instance of contravention of specified regulatory requirements.
The changes are intended to bring telecom interconnection rules in line with technological developments while providing greater clarity to service providers. TRAI expects the revised framework to support efficient network connectivity and seamless communication between different telecom operators.
The regulations also seek to uphold transparency, non-discrimination, effective interconnection and fair competition across the telecommunications sector.
The complete text of the Telecommunication Interconnection (Port Charges) (Third Amendment) Regulations, 2026, along with its Explanatory Memorandum, is available on the official TRAI website at www.trai.gov.in.
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