The Telecom Regulatory Authority of India (TRAI) has put a cap on the annual charges for internet protocol (IP) ports used to connect telecom networks.
The body has set the maximum fee at Rs 5.6 lakh for a 1 Gbps port and Rs 42.3 lakh for a 10 Gbps port. The revised charges will come into effect from January 1, 2027, under amendments to India’s telecom interconnection regulations.
The regulator announced the changes through the Telecommunication Interconnection (Port Charges) (Third Amendment) Regulations, 2026, bringing IP-based connectivity within a framework that previously covered legacy network technology.
TRAI Sets Annual Price Ceilings for 1 Gbps and 10 Gbps IP Ports
Under the revised rules, the annual charge for a 1 Gbps IP port cannot go beyond Rs 5.6 lakh, while the ceiling for a 10 Gbps port has been fixed at Rs 42.3 lakh.
Telecom service providers & operators seeking interconnection can mutually consent on charges below this prescribed limit. They can also negotiate charges for other port capacities, provided the pricing follows the methodology established for the 1 Gbps and 10 Gbps categories.
The new IP-port charges will apply uniformly across fixed-line, mobile, national long-distance and international long-distance services. Existing charges will continue to apply to E1 ports.
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New Rules Extend Framework Beyond Legacy Telecom Technology
TRAI has revised the definition of a ‘port’ to cover both legacy E1 ports, which operate at 2.048 Mbps and IP ports, with bandwidth measured in Mbps or Gbps.
The existing interconnection regulations, introduced in 2001, were based on E1/TDM technology. Their prescribed charges were last revised in 2012.
The latest amendment introduces a separate pricing framework for IP-based interconnection while retaining the existing provisions for E1/TDM-based connections.
Interconnection refers to arrangements that allow different telecom networks to connect and exchange calls and other traffic, enabling customers of separate operators to communicate.
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TRAI Introduces Financial Disincentives for Non-Compliance
To ensure compliance, TRAI has introduced a graded financial disincentive mechanism. The penalty is capped at Rs 15 lakh per service area for each instance of violation of specified provisions.
The regulatory review began with a pre-consultation paper on April 3, 2025, followed by a consultation paper on November 10, 2025. An open house discussion was subsequently held on January 28, 2026.
TRAI said the revised framework would align interconnection pricing with technological advancements while providing greater regulatory certainty, transparency, non-discrimination and fair competition among service providers.
With the revised IP-port pricing framework scheduled to take effect on January 1, 2027, the focus will now be on how telecom operators implement the new charges and comply with the updated interconnection rules.
Samarjit Kaur is a journalist and communications professional covering technology & emerging digital trends. With a focus on clarity and context, she reports on developments shaping industries and governance. When not reporting, she chooses to plug-in and relax on her playlists and plan her next bucket-list trips!
