TRAI Revises Telecom Interconnection Charges, New Rates Effective January 2027

The Telecom Regulatory Authority of India (TRAI) has fixed the maximum charges telecom operators can levy on one another for connecting their networks, as per news reports.  

The revised rates will come into effect on January 1, 2027, and cover connections using Internet Protocol (IP) technology.  

Charges for IP-Based Connections 

Under the new rates, the annual charge for a 1 Gbps connection will be capped at ₹5.6 lakh. For a 10 Gbps connection, the maximum annual charge will be ₹42.3 lakh. 

The limits have been notified under the Telecommunication Interconnection (Port Charges) (Third Amendment) Regulations, 2026. The amendment extends the existing framework, which covered older E1/TDM technology, to IP-based connections. 

Charges to Apply Across Telecom Services 

The revised rates will apply to fixed-line, mobile, national long-distance and international long-distance services. Charges for older E1 connections will continue under the existing rate structure. 

Operators will be allowed to negotiate charges below the prescribed limits. They can also agree on connection capacities other than the two specified categories of 1 Gbps and 10 Gbps. In these cases, charges will be calculated using the methodology laid down by TRAI. 

The regulations govern the payments made by one telecom company to another for connecting their networks. Such connections allow calls and other telecom services to pass between operators. 

Penalties for Non-Compliance 

TRAI has also introduced a graded penalty system for violations of specified provisions under the amended regulations. The penalty will be capped at ₹15 lakh per service area for each instance of violation. 

The original Telecommunication Interconnection (Port Charges) Regulation was introduced in 2001. Its provisions were last revised in 2012, before the latest changes were notified. 

Review Began in April 2025 

TRAI started reviewing the port charge framework by issuing a pre-consultation paper in April 2025. A formal consultation paper followed in November 2025. 

The regulator received comments from 17 stakeholders and counter-comments from nine. An open house discussion was held on January 28, 2026, before the amendments were finalised. 

Read More: India Proposes 2-Year Restrictions on Soda Ash Imports After 89% Rise in Shipments! 

Conclusion  

The revised limits will govern charges for IP-based network connections from January 2027, while the existing rates for E1 connections will remain unchanged. 

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