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TRAI Caps Annual IP Interconnection Port Charges

The regulator set fixed ceilings and penalties to bring clarity to how networks pay each other and to speed the shift from older E1 links to internet‑protocol connections.

Overview

  • TRAI released the Telecommunication Interconnection (Port Charges) (Third Amendment) Regulations, 2026 on Monday and set annual ceilings of Rs 5.6 lakh for a 1 Gbps IP port and Rs 42.3 lakh for a 10 Gbps IP port, with the rules effective January 1, 2027.
  • The amendment revises the definition of “port” to cover both legacy E1 ports and modern IP ports, and it applies the IP‑port ceilings across fixed, mobile, national long‑distance and international services.
  • Operators may negotiate rates below the ceilings or agree on other port sizes, but charges for non‑standard capacities must follow the same transparent methodology TRAI used for 1 Gbps and 10 Gbps ports.
  • To enforce the new regime TRAI introduced a graded penalty framework that caps financial penalties at Rs 15 lakh per service area for each contravention and includes specific reporting fines for missed deadlines.
  • The rule change follows a consultative review that began in April 2025 and is meant to modernize a 2001 port‑charges regime that was last updated in 2012, reduce reliance on hard‑to‑source E1 equipment and improve interconnection transparency for consumers and providers.