The Telecom Regulatory Authority of India (TRAI) has introduced annual ceiling charges for IP-based interconnection ports used by telecom operators to connect their networks. Under the new framework, the maximum annual charge will be Rs 5.6 lakh for a 1 Gbps IP port and Rs 42.3 lakh for a 10 Gbps port.
The new limits are part of the Telecommunication Interconnection (Port Charges) (Third Amendment) Regulations, 2026, released on November 9. The regulations will take effect from January 1, 2027, and cover fixed-line, mobile, national long-distance and international long-distance services.
The move updates the existing port-charge framework, which was primarily designed around older E1/TDM-based interconnection technology.
TRAI’s New Annual Ceiling for IP Interconnection Ports
TRAI has prescribed the following maximum annual charges for IP-based interconnection ports:
| IP port capacity | Maximum annual charge |
|---|---|
| 1 Gbps | Rs 5.6 lakh |
| 10 Gbps | Rs 42.3 lakh |
These amounts are regulatory ceilings rather than compulsory fixed prices. Telecom operators providing and seeking interconnection can mutually agree on lower charges.
The framework also allows operators to agree on IP-port capacities other than 1 Gbps and 10 Gbps. In such cases, charges must be determined transparently using the methodology prescribed for the standard port capacities.
The existing charges under the earlier framework will continue to apply to E1 ports, while the new provisions introduce specific charging rules for IP ports.
What Is IP-Based Interconnection in Telecom Networks?
Interconnection allows customers on different telecom networks to communicate with one another. For example, when a Jio subscriber calls an Airtel number, the networks need an arrangement to exchange and deliver the call traffic.
This is made possible through points of interconnection (POIs), where operators connect their networks and hand over traffic.
A port is one of the network interfaces used to establish that connection. Its capacity determines how much traffic can be carried through the link.
Older telecom interconnection arrangements commonly used E1/TDM technology, with an E1 port providing 2.048 Mbps capacity. Modern telecom networks increasingly use Internet Protocol (IP)-based infrastructure, which supports higher-capacity connections measured in Mbps and Gbps.
With growing data traffic, fibre deployments, 4G and 5G services, and increasing network capacity requirements, IP-based interconnection has become an important part of telecom infrastructure.
Why Has TRAI Introduced New IP Port Charges?
The earlier Telecommunication Interconnection (Port Charges) Regulations, 2001 were based on legacy E1/TDM port technology. According to the Ministry of Communications, the charges prescribed under that framework were last revised in 2012.
The expansion of IP-based networks created a need for a regulatory framework that recognises higher-capacity ports and establishes transparent charging arrangements.
TRAI reviewed the existing framework through consultations with industry stakeholders. Seventeen stakeholders submitted comments and nine submitted counter-comments. An open-house discussion was also held on January 28, 2026, before the regulator finalised the amendment.
The new ceilings are intended to provide greater clarity to operators when negotiating the cost of interconnecting their networks.
New Rules Apply Across Fixed-Line, Mobile and Long-Distance Services
The IP-port charging framework will apply uniformly across four service categories:
- Fixed-line telecom services
- Mobile telecom services
- National long-distance services
- International long-distance services
This means the new charging provisions are not restricted to mobile operators. They also cover the interconnection arrangements used by fixed-line and long-distance service providers.
The regulations allow operators to negotiate lower charges, but the agreed amounts must remain within the prescribed ceilings and follow the applicable methodology.
TRAI Introduces Financial Disincentives for Violations
The amendment also introduces a graded financial disincentive framework to support compliance.
For specified violations of the regulations, financial disincentives can reach a maximum of Rs 15 lakh per service area for each instance of contravention.
The Rs 15 lakh figure is a ceiling, not an automatic penalty for every violation. The applicable financial disincentive will depend on the nature of the contravention and the regulatory provisions involved.
What the New Rules Mean for Telecom Operators
The new framework provides operators with a defined upper limit for IP-port charges when arranging network interconnection. It could make commercial negotiations more predictable, particularly where operators require higher-capacity connections to exchange growing volumes of traffic.
The financial impact will depend on the number of ports an operator uses, the capacity required, existing interconnection agreements and whether the parties negotiate charges below the regulatory ceiling.
However, the new rules should not be interpreted as a direct reduction in mobile tariffs or broadband prices. They regulate the charges associated with interconnection ports between service providers, rather than the retail prices paid by customers.
From January 1, 2027, telecom operators will need to follow the revised IP-port charging framework for arrangements covered by the amendment.
The regulation is another step in updating India’s telecom interconnection framework as operators move from legacy transmission arrangements towards higher-capacity IP-based networks.
