TRAI orders shift to IP-based interconnection, with old links to migrate in three years

The Telecom Regulatory Authority of India (TRAI) has issued new rules that will move phone traffic between telecom networks to internet-protocol (IP) links, with existing older links to be migrated within three years.

"The Telecommunication Interconnection (Third Amendment) Regulations, 2026" take effect on 1 January 2027. Interconnection is the arrangement that lets users of different operators communicate with each other.

What changes

• IP only for new links. All new interconnections after the rules take effect must be IP-based. Existing E1/TDM links must migrate in phases within three years. TRAI says IP improves bandwidth efficiency and call quality.
• Service-area level handover. Operators can agree where to hand over traffic. Traffic at Long Distance and Short Distance Charging Area points of interconnection must move in phases to Licensed Service Area level within three years. TRAI says this simplifies routing and can lower latency.
• Surrender of points. A new procedure lets a provider voluntarily surrender a point of interconnection, for example when traffic falls or services are withdrawn from an area.
• Bank guarantees. The validity of guarantees furnished on reassessment, and the interval between reassessments, goes from six months to twelve.
• Late payment. Interest on delayed interconnection charges is to be mutually agreed, capped at the State Bank of India's one-year MCLR plus two percent.
• Enforcement. Operators must file reports on the migration, and a graded system of financial disincentives applies for violations.

How the rules were made

TRAI began with a pre-consultation paper on 3 April 2025 and issued a consultation paper on 10 November 2025. Seventeen stakeholders sent comments and nine sent counter-comments, and an open house discussion was held on 28 January 2026.

The full text and explanatory memorandum are on trai.gov.in. The release does not give the size of the financial disincentives.

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Source: official release by the Ministry of Communications, issued through the Press Information Bureau, Government of India (03 NOV 2026 12:37PM by PIB Delhi). Read the full official text: TRAI releases “The Telecommunication Interconnection (Third Amendment) Regulations, 2026”.