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TAX & POLICY1 MIN READ

TRAI sets port-charge framework for IP interconnection

New regulations extend India’s telecom interconnection charging framework beyond legacy E1 and TDM ports from 1 January 2027.

By Spectate Media desk
Telecom engineers inspect fibre ports inside a modern network operations centre.

The Telecom Regulatory Authority of India has introduced a charging framework for ports used in IP-based interconnection, extending rules that previously focused on legacy E1 and time-division-multiplexing links.

The Telecommunication Interconnection (Port Charges) (Third Amendment) Regulations, 2026 will take effect on 1 January 2027.

Rules catch up with network migration

Interconnection ports allow traffic to pass between telecom service-provider networks. As operators migrate from circuit-switched infrastructure to IP-based systems, the associated charging rules need to cover the newer technical architecture.

The amendment supplements rather than simply removes the existing framework for E1 and TDM ports. That matters because operators can run a mix of legacy and IP infrastructure during a transition, with different capacity and cost characteristics.

Clearer charging rules can reduce commercial disputes and make network expansion more predictable. The actual impact will depend on the notified charge structure, the capacity increments operators require and how rapidly existing interconnection arrangements are migrated.

Operators have a short implementation window

Service providers have less than two months to align commercial agreements, provisioning processes and billing systems before the rules commence.

Finance, regulatory and network teams will need to reconcile contract language with the amended regulations and identify interconnection points still using legacy technology. Smaller operators may be particularly sensitive to recurring port costs and the timing of capacity upgrades.

The next evidence will come from implementation: revised agreements, any clarification issued by TRAI and whether the IP framework lowers friction in adding interconnection capacity. The shift also provides a policy signal that the regulator expects charging systems to follow the sector’s move toward software-led networks.

Source: Telecom Regulatory Authority of India via PIB, 9 November 2026.

This article is journalism and commentary. It is not a recommendation to buy or sell any security, and it is not professional advice. Read the full disclaimer.

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