The revised rules require telecom operators to shift new interconnections to IP-based technology from 1 January 2027 and migrate existing legacy systems within three years. The changes also move traffic exchange towards Licensed Service Area-level interconnection.
The Telecom Regulatory Authority of India (TRAI) has revised the country’s telecom interconnection framework, mandating the use of Internet Protocol (IP)-based technology for all new interconnections established from 1 January 2027.
Under the Telecommunication Interconnection (Third Amendment) Regulations, 2026, existing interconnection points operating on legacy E1 and Time Division Multiplexing (TDM) technology must also be migrated to IP-based systems within three years, in a phased manner.
Released on 3 November 2026, the amendment is aimed at modernising the infrastructure that enables telecom networks to exchange voice and other telecommunications traffic. It applies to telecom service providers and changes how operators establish and manage connections between their networks.
The revised framework also provides for a transition from the existing Long Distance Charging Area (LDCA) and Short Distance Charging Area (SDCA)-level points of interconnection to the Licensed Service Area (LSA) level.
What are TRAI’s new IP-based interconnection rules?
Interconnection refers to the technical and operational arrangements that allow two or more telecom networks to exchange traffic. It is what enables a customer using one operator’s network to communicate with someone using another operator.
For example, when an Airtel subscriber calls a Jio number, the two operators’ networks need an interconnection arrangement to carry the call between them.
Under the revised regulations, all new interconnections established from 1 January 2027 must use IP-based technology. Existing E1/TDM-based points of interconnection (POIs) will have to move to IP-based systems within three years, with the migration carried out in phases.
This means operators will need to progressively upgrade their existing interconnection infrastructure rather than continue relying on legacy arrangements for new connections.
The shift to IP-based interconnection is expected to improve bandwidth efficiency, call quality and end-to-end call performance, according to TRAI.
Existing telecom interconnections must move to LSA level
Another major change concerns the geographical level at which telecom operators exchange traffic.
The existing framework has interconnection arrangements at Long Distance Charging Area and Short Distance Charging Area levels. TRAI’s amendment facilitates a transition towards Licensed Service Area-level interconnection.
Under the revised rules, operators can mutually agree on the locations where telecommunications traffic will be handed over or received.
Existing traffic, measured in Minutes of Usage (MoUs), exchanged through LDCA- and SDCA-level POIs must be migrated to LSA-level POIs within three years in a phased manner. After the transition, traffic will be handed over or received at LSA or Service Area-level POIs.
TRAI expects this change to simplify traffic routing, improve the management of numbering resources, reduce latency and strengthen service reliability.
How IP-based interconnection can benefit telecom networks
The move from E1/TDM-based infrastructure to IP-based interconnection is an important step in modernising the underlying architecture used by telecom operators.
Traditional TDM systems allocate fixed time slots for communication, while IP-based systems use packet-based technology to carry traffic across network infrastructure. This can allow network resources to be used more efficiently, particularly as traffic volumes and demand for connectivity increase.
The transition could offer several operational benefits:
- Better bandwidth utilisation: IP-based systems can use available network capacity more efficiently than traditional fixed-channel arrangements.
- Improved call handling: Operators can manage interconnection capacity based on concurrent sessions and available link bandwidth.
- Lower latency: The move towards LSA-level interconnection is expected to simplify routing and reduce delays in traffic exchange.
- Improved reliability: Modernised interconnection arrangements can support more efficient traffic management between networks.
- Greater network flexibility: IP-based infrastructure can provide operators with more flexibility when expanding or adjusting interconnection capacity.
However, the actual improvement in call quality and reliability will depend on how operators implement the migration, manage capacity and maintain their networks. The regulatory change alone does not guarantee a noticeable improvement for every customer.
TRAI introduces capacity and reporting requirements
The amendment also establishes a framework for determining the maximum call-handling capacity at IP-based points of interconnection.
Capacity will be assessed based on the concurrent session-handling capability of the interconnection point and the available link bandwidth. Operators must maintain the applicable quality-of-service requirements while determining this capacity.
TRAI has also introduced reporting requirements to monitor two major transitions: migration of traffic from LDCA/SDCA-level POIs to LSA-level POIs, and migration from E1/TDM-based interconnection to IP-based systems.
In addition, the revised regulations introduce a graded financial-disincentive framework for violations. This is intended to strengthen compliance and make enforcement proportionate to the nature and seriousness of the contraventions.
The amendment also provides a framework for the surrender of points of interconnection and revises provisions relating to delayed payments between service providers.
What the new TRAI rules mean for Jio, Airtel, Vi and BSNL
The revised framework will require telecom service providers to plan their network upgrades and migration schedules ahead of the January 2027 implementation date.
Operators such as Reliance Jio, Bharti Airtel, Vodafone Idea and BSNL will need to ensure that new interconnections comply with the IP-based requirement once the regulations take effect. Existing E1/TDM-based interconnection infrastructure will need to be migrated within the prescribed three-year period.
The transition will involve network planning, infrastructure upgrades, capacity assessment and coordination between service providers. Operators will also need to comply with the new reporting and regulatory requirements.
The phased migration period gives operators time to upgrade their infrastructure while continuing to exchange traffic through existing arrangements during the transition.
Will mobile users need a new SIM card or smartphone?
No. The new TRAI regulations concern interconnection infrastructure used by telecom operators to exchange traffic between their networks. They do not introduce a requirement for consumers to replace their SIM cards, smartphones or existing mobile connections.
Customers using Jio, Airtel, Vi or BSNL services can continue using their existing devices and plans. The changes will be implemented at the network level by service providers.
Consumers may benefit indirectly if the transition improves traffic handling, call quality and network reliability. However, TRAI has not announced a separate consumer-facing upgrade or a guaranteed improvement in call quality for every subscriber.
When will TRAI’s revised interconnection rules take effect?
The Telecommunication Interconnection (Third Amendment) Regulations, 2026, will come into force on 1 January 2027.
New interconnections established from that date must be IP-based. Existing E1/TDM-based interconnections and traffic exchanged through LDCA/SDCA-level POIs must be migrated to the revised arrangements within three years, in a phased manner.
The amendment marks a significant shift in India’s telecom interconnection framework, with IP-based technology and LSA-level traffic exchange set to become central to how operators connect their networks.
