TRAI Sets Ceiling Charges for IP-Based Telecom Interconnection Ports

New Delhi: The Telecom Regulatory Authority of India (TRAI) has notified the Telecommunication Interconnection (Port Charges) (Third Amendment) Regulations, 2026, introducing a regulatory framework for Internet Protocol (IP)-based interconnection charges. The new regulations will come into effect from January 1, 2027.

The amendments expand the definition of telecom ports to include both legacy E1 and IP-based ports, reflecting the sector’s transition to modern network technologies. TRAI has fixed annual ceiling charges at Rs: 5.6 lakh for a 1 Gbps IP port and Rs: 42.3 lakh for a 10 Gbps IP port.

The regulations allow service providers to mutually agree on charges below the prescribed ceiling and on alternative port capacities, provided pricing remains transparent. The framework will apply uniformly across fixed-line, mobile, national long-distance and international long-distance services, while existing charges will continue for E1 ports.

To ensure compliance, TRAI has also introduced a graded financial disincentive mechanism, with penalties of up to Rs: 15 lakh per service area for each instance of contravention.

According to TRAI, the revised framework aligns interconnection regulations with technological advancements and is expected to strengthen network interoperability, transparency, fair competition and seamless communication across telecom networks.