New Delhi: The Telecom Regulatory Authority of India (TRAI) has notified new telecom interconnection rules mandating IP-based systems for all new network connections from January 1, 2027. Existing E1/TDM-based interconnections will have to migrate to IP-based systems within three years.
The Telecommunication Interconnection (Third Amendment) Regulations, 2026, aim to modernise network connectivity, improve efficiency and ensure seamless communication between telecom operators.
Under the revised framework, service providers can mutually decide locations for exchanging traffic at the Licensed Service Area (LSA) level. Existing traffic exchanged through Long Distance Charging Area (LDCA) and Short Distance Charging Area (SDCA) points must be shifted to LSA-level points within three years.
TRAI has also revised provisions governing interconnection capacity, voluntary surrender of points of interconnection and bank guarantees. The reassessment interval and validity of bank guarantees have been extended from six months to 12 months.
The amendment introduces interest on delayed interconnection payments, capped at the State Bank of India’s one-year Marginal Cost of Funds-based Lending Rate (MCLR) plus 2%.
The regulator has also prescribed reporting requirements and graded financial disincentives for violations.
TRAI said the changes would strengthen transparency, service reliability and fair competition in the telecom sector.
