The Telecom Regulatory Authority of India (TRAI) has introduced new limits on the charges telecom operators can levy on one another for internet-based connections between their networks. The regulator has capped annual charges at Rs 5.6 lakh for a 1 Gbps connection and Rs 42.3 lakh for a 10 Gbps connection.
The new rules will come into effect on January 1, 2027, as part of a broader effort to modernise India’s telecom infrastructure and move away from older network connection technology.
The changes are covered under the Telecommunication Interconnection (Port Charges) (Third Amendment) Regulations, 2026.
What Are Telecom Interconnection Charges?
When a customer on one telecom network calls someone using another operator’s network, the call traffic must pass between the two networks through an interconnection point, commonly known as a port.
The operator providing this connection can charge the other operator for using the port. These charges are governed by TRAI regulations.
The existing framework was introduced in 2001 and was based largely on E1 and Time Division Multiplexing (TDM) technology. The charges were last revised in 2012.
With telecom networks increasingly adopting Internet Protocol (IP) technology for carrying voice and data traffic, TRAI has now introduced a separate pricing framework for IP-based interconnections.
New Annual Charge Limits for IP Connections
Under the revised regulations, telecom operators can charge a maximum of:
- Rs 5.6 lakh annually for a 1 Gbps IP port.
- Rs 42.3 lakh annually for a 10 Gbps IP port.
These are maximum permissible charges, not mandatory prices. Telecom operators can mutually negotiate lower rates.
They can also agree on connection capacities other than 1 Gbps and 10 Gbps, provided the charges are calculated transparently using the methodology prescribed by TRAI.
The same pricing framework will apply across fixed-line, mobile, national long-distance and international long-distance services.
Older E1 Technology to Be Phased Out
The pricing amendment is part of a wider regulatory push to replace legacy E1/TDM-based connections with IP-based interconnections.
Under a separate amendment to the interconnection regulations, all new interconnections will have to use IP technology. Existing E1 connections will also need to migrate to IP-based links within three years from January 1, 2027.
This means telecom operators will have to progressively upgrade the infrastructure connecting their networks.
TRAI’s review found that TDM-based equipment has become outdated, is increasingly difficult to procure and maintain, and has limited manufacturer support.
The regulator believes the transition will help align interconnection infrastructure with modern telecom network requirements.
Penalties for Non-Compliance
TRAI has also introduced financial disincentives to ensure operators follow the revised rules.
Under the port-charge regulations, specified violations can attract penalties of up to Rs 15 lakh per service area for each instance of contravention.
The framework also provides for penalties linked to delayed reporting, with the amount increasing depending on the duration of the delay. Operators will be given an opportunity to be heard before a financial disincentive is imposed.
Will the Changes Reduce Mobile Bills?
The new charge ceilings apply to payments between telecom operators, not directly to mobile subscribers.
The changes are intended to make interconnection pricing more transparent and predictable while encouraging operators to adopt modern IP infrastructure.
Although more efficient interconnection arrangements could support network operations, TRAI has not announced any direct reduction in mobile recharge prices or call tariffs as part of these regulations.
Summary
TRAI has capped annual charges for IP-based telecom interconnections at Rs 5.6 lakh for 1 Gbps and Rs 42.3 lakh for 10 Gbps ports, effective January 1, 2027. The regulator is also requiring new connections to use IP technology and existing E1 links to migrate within three years. The changes aim to modernise telecom infrastructure and improve transparency in inter-operator pricing.
