Politics · India · 6 hrs ago
India caps charges for telecom networks’ IP connections
India’s telecom regulator has capped charges that operators can bill one another for internet-based connections between their networks.
The annual limits are ₹5.6 lakh for a 1 Gbps port and ₹42.3 lakh for a 10 Gbps port.
A port is the point where networks connect, allowing calls and other traffic to pass between different providers.
Operators have often used older E1 links for these connections, even as they carry 4G and 5G calls over internet-based networks within their own systems.
The regulator says the mixed setup can delay calls, reduce call quality and raise costs, while the old equipment is difficult to maintain.
The charge limits take effect on January 1, 2027, and new interconnections must use IP technology; existing E1 links must move to IP within three years.
India’s telecom regulator has capped annual charges for IP connections between telecom networks at ₹5.6 lakh for a 1 Gbps port and ₹42.3 lakh for a 10 Gbps port.
The rules take effect on January 1, 2027.
The changes aim to support a shift from older E1 links to IP-based connections between operators.
A separate amendment requires new interconnections to use IP and existing E1 links to move to IP within three years.
The same IP-port charge ceilings apply to mobile, fixed-line, national long-distance and international long-distance services.
- Who
- India’s Telecom Regulatory Authority of India (TRAI).
- What
- It capped annual charges for IP ports used to connect telecom networks. The rules also form part of a shift from older E1 links to IP.
- When
- The regulations take effect on January 1, 2027.
- Where
- India.
- Why
- TRAI said the mixed use of IP and older E1 links causes delays, lowers call quality between networks and raises costs.
Telecom stakeholders seeking service-specific charges
TRAI
Charge structure
Telecom stakeholders seeking service-specific charges
Some stakeholders sought different charges for different services.
TRAI
TRAI said IP ports carry all kinds of traffic in the same way and set uniform charges across services.
TRAI began its review with a pre-consultation paper.
TRAI issued a consultation paper.
TRAI held an open house discussion.
TRAI released the amended port-charge regulations.
The regulations take effect, and a separate amendment requiring new IP interconnections also comes into force.
- 1 Gbps IP port
- Annual ceiling of ₹5.6 lakh
- 10 Gbps IP port
- Annual ceiling of ₹42.3 lakh
- Effective date
- January 1, 2027
- Existing E1 links
- Must move to IP within three years
- Penalty ceiling
- ₹15 lakh per service area for each violation
2 sources
What people are saying
The regulatory framework aims to provide greater regulatory certainty to service providers while upholding the principles of effective interconnection, transparency, non-discrimination, and fair competition.
the stakeholders have indicated that TDM-based equipment has now become outdated, is no longer readily available in the market and has reached its end-of-life.