TRAI sets port charge ceilings for IP-based interconnection, effective Jan 2027

The Telecom Regulatory Authority of India (TRAI) has capped annual charges for IP ports used in telecom interconnection at Rs 5.6 lakh per 1 Gbps port and Rs 42.3 lakh per 10 Gbps port.

The prescribed ceilings form part of the Telecommunication Interconnection (Port Charges) (Third Amendment) Regulations, 2026, released on Monday and effective from January 1, 2027.

"The definition of 'port' has been revised to include both legacy E1 ports (2.048 Mbps) and IP ports, with bandwidth expressed in Mbps or Gbps," TRAI said in a release.


The annual ceilings on IP-port charges have been prescribed at Rs 5.6 lakh per 1 Gbps IP port, and Rs 42.3 lakh per 10 Gbps IP port, it said.

Providers and seekers can agree to charges below these ceilings. They can also agree on other port capacities, with charges set using the same methodology as for the 1 Gbps and 10 Gbps ports.

"IP-port charges apply uniformly across fixed-line, mobile, national long-distance and international long-distance services. The charges prescribed earlier shall continue to apply only to E1 ports," TRAI said.

To enforce compliance, TRAI has prescribed a graded financial disincentive framework. The penalty is capped at Rs 15 lakh per service area for each instance of contravention of specified provisions.

The amendment follows a review that began with a pre-consultation paper on April 3, 2025, and a consultation paper issued on November 10, 2025. An open house discussion was held on January 28, 2026.

Put simply, the interconnection in telecommunications refers to the technical, operational, and commercial arrangements that connect two or more telecom networks, allowing telecommunications traffic to flow between them and enabling users of different service providers to communicate seamlessly.

The TRAI Act, 1997, empowers the regulator to prescribe the terms and conditions of interconnection between service providers, and to ensure technical compatibility and effective interconnection between different service providers.

The Telecommunication Interconnection (Port Charges) Regulation, 2001 prescribes the charges payable by an interconnection seeker to an interconnection provider for terminating interconnection links at its point of interconnection.

"The extant regulations were based on legacy E1/TDM-based port technologies, and the charges prescribed therein were last revised in 2012," TRAI said.

The latest "amendments introduce a framework for port charges for IP-based interconnection, supplementing the existing provisions applicable to ports for EI/TDM-based interconnection".

TRAI said the changes align the rules with technological advancements and are expected to strengthen the interconnection framework.

"The regulatory framework aims to provide greater regulatory certainty to service providers while upholding the principles of effective interconnection, transparency, non-discrimination, and fair competition," the regulator said.