TRAI Internet Interconnection Charges have been capped under a new regulatory framework that will change how telecom companies pay each other for connecting their networks.
The Telecom Regulatory Authority of India (TRAI) has fixed the maximum annual charge at Rs 5.6 lakh for a 1 Gbps internet protocol (IP) port and Rs 42.3 lakh for a 10 Gbps port.
The revised rules will come into effect from January 1, 2027, under the Telecommunication Interconnection (Port Charges) (Third Amendment) Regulations, 2026.
The move is part of a broader effort to modernise India’s telecom infrastructure and encourage operators to move away from older network connection technology.
The new framework is relevant to telecom operators providing mobile, fixed-line, national long-distance and international long-distance services.
TRAI Internet Interconnection Charges: New Price Limits
Under the revised regulations, TRAI has introduced annual price ceilings for IP-based connections used by telecom companies to exchange network traffic.
The maximum permitted charges are:
1 Gbps IP port: Rs 5.6 lakh per year.
10 Gbps IP port: Rs 42.3 lakh per year.
These amounts represent the maximum annual charges that an operator providing an interconnection port can collect from another operator seeking access.
However, telecom companies are allowed to mutually agree on lower charges.
They can also negotiate prices for other port capacities, provided the calculations follow the methodology prescribed by TRAI.
The regulator has clarified that the revised IP-port charges will apply uniformly across mobile, fixed-line, national long-distance and international long-distance services.
Why Has TRAI Changed Telecom Interconnection Charges?
Telecom interconnection allows customers using different mobile or fixed-line networks to communicate with one another.
For example, when a customer using one operator’s network calls someone using another company’s network, the call traffic must pass through an interconnection point connecting the two networks.
The operator providing this connection can charge the other company for using the infrastructure.
Earlier, the regulatory framework was primarily based on E1 ports and Time Division Multiplexing (TDM) technology.
The original port charge regulations were introduced in 2001, and the prescribed charges were last revised in 2012.
However, telecom technology has changed significantly since then. Modern 4G and 5G networks increasingly rely on Internet Protocol-based infrastructure to carry voice and data traffic.
TRAI has therefore introduced a separate pricing framework for IP-based interconnections to bring regulations in line with current network technology.
Telecom Companies Must Shift Towards IP Technology
The revised pricing framework is part of a larger modernisation exercise involving India’s telecom networks.
TRAI has also mandated that new telecom interconnections must use IP-based technology.
Existing connections operating through older E1 technology will have to migrate to IP-based systems within three years under the separate interconnection amendment.
The transition is intended to simplify network connectivity and improve the efficiency of communication between different telecom operators.
E1 technology operates at a capacity of 2.048 Mbps, while IP-based ports can support much higher bandwidth capacities measured in Mbps or Gbps.
The revised definition of a port now includes both traditional E1 ports and newer IP ports.
Existing prescribed charges will continue to apply to E1 ports, while the newly introduced annual ceilings will govern IP-based connections.
TRAI Introduces Penalties for Telecom Rule Violations
The regulator has also introduced a graded financial disincentive mechanism to improve compliance with the revised regulations.
Telecom operators violating specified provisions may face financial penalties of up to Rs 15 lakh per service area for each instance of contravention.
The framework includes penalties for missing specified reporting deadlines.
These can reach Rs 25,000 per day for the first 15 days and Rs 50,000 per day thereafter, subject to the overall prescribed ceiling.
Operators will be given an opportunity to present their case before a penalty is imposed. TRAI may also reduce or waive a penalty where permitted under the regulations.
When Will the New TRAI Rules Take Effect?
The new IP-port pricing framework will become effective on January 1, 2027.
The amendment follows a consultation process that included a pre-consultation paper in April 2025, a consultation paper in November 2025 and an open house discussion in January 2026.
The revised framework is expected to provide telecom operators with greater clarity about interconnection costs while supporting the transition towards modern network infrastructure.
For ordinary mobile users, the changes do not introduce a new recharge fee or directly change retail calling and data plan prices.
The regulations primarily govern the charges telecom companies pay each other for connecting their networks.
The long-term impact will depend on how operators implement the new technology and manage their interconnection arrangements.
