Archive · 31 Dec 2025
BSNL and Private Telcos Disagree on IP Interconnection Costs
Private telecom companies in India want to switch to a new way of connecting their networks to make things more efficient and cheaper.
However, the state-owned company BSNL has spent a lot of money on the old system and doesn't want to change so quickly.
The private companies say the old system is causing problems, but BSNL is worried about losing money and needs time to upgrade.
They are both talking to the government to decide what to do.
Private telcos want to shift to IP-based interconnection at the Licensed Service Areas (LSA) level for efficiency.
BSNL has invested heavily in the Long-Distance Charging Area (LDCA) level infrastructure and opposes the rapid transition.
Private telcos argue that the current system inflates costs and delays network modernization.
BSNL seeks phased migration timelines and compensation for its legacy infrastructure.
BSNL opposes mandatory IP-based interconnection due to security concerns and the need for substantial investments in upgrades.
- Who
- Private telecom operators (Bharti Airtel, Jio, Vodafone Idea) and BSNL
- What
- Disagreement over the cost of transitioning to IP-based interconnection
- When
- Ongoing
- Where
- India
- Why
- Private telcos seek efficiency and modernization, while BSNL aims to protect its investments
- Private Telcos
- Bharti Airtel, Jio, Vodafone Idea
- State-Owned Telco
- Bharat Sanchar Nigam Limited (BSNL)
- Regulatory Body
- Telecom Regulatory Authority of India (TRAI)
- Private Telcos' Proposal
- Shift to Licensed Service Areas (LSA) level, IP-based interconnection
- BSNL's Concern
- Heavy investment in Long-Distance Charging Area (LDCA) level infrastructure
- Private Telcos' Issues with Current System
- Inflated costs, distorted competition, delayed network modernization
- BSNL's Request
- Phased migration timelines of up to five years, revenue protection or compensation for legacy infrastructure
- BSNL's Opposition to IP-Based Interconnection
- Citing security readiness and substantial investment needs for upgrades