India's operators will pay capped prices for IP interconnection ports from the start of 2027, replacing charges designed for legacy circuit-switched networks.
The regulations
On 9 November 2026 the Telecom Regulatory Authority of India (TRAI) issued the Telecommunication Interconnection (Port Charges) (Third Amendment) Regulations, 2026, according to India.com. Port charges are paid by an operator seeking interconnection to the operator providing it, for terminating interconnection links at the point of interconnection.
The existing regulations date from 2001 and were based on E1/TDM port technology, with charges last revised in 2012. The amended framework redefines a "port" to cover both legacy E1 ports (2.048 Mbps) and IP ports measured in Mbps or Gbps.
The caps
From 1 January 2027 the regulations set ceiling charges of:
- Rs 5.6 lakh a year for a 1 Gbps IP port
- Rs 42.3 lakh a year for a 10 Gbps IP port
Operators may agree lower charges, and may agree other port capacities, with charges worked out transparently using the same method TRAI used for the 1 Gbps and 10 Gbps ports.
Legal basis
TRAI relies on section 11(1)(b) of the TRAI Act 1997, which empowers it to set the terms and conditions of interconnection and to ensure effective interconnection between providers. The review began with a pre-consultation paper.
Why it matters
The 2012 charges were designed for circuit-switched networks. Setting ceilings for IP ports gives operators a clear basis for pricing interconnection as networks move fully to IP, and should reduce scope for disagreement.
Why it matters financially
- Price ceilings: Rs 5.6 lakh a year per 1 Gbps port and Rs 42.3 lakh a year per 10 Gbps port, from 1 January 2027, as reported by India.com.
- Wholesale costs: capped, technology-neutral charges reduce the cost and uncertainty of interconnecting with larger networks, which matters most for smaller operators and new entrants.
- Disputes: clear rules should lower the regulatory and legal costs of interconnection disagreements.