TRAI Unveils New Telecommunications Interconnection Regulations Effective January 1, 2027

New Delhi, November 3 (Daily Kiran) : The Telecom Regulatory Authority of India (TRAI) announced new regulations on telecommunications interconnection, which will take effect on January 1, 2027. The ‘Telecommunications Interconnection (Third Amendment) Regulations, 2026’ were released on November 3.

The regulations define interconnection as the technical, operational, and commercial arrangements that link two or more telecom networks. This framework facilitates the exchange of telecommunications traffic, allowing users from different service providers to communicate seamlessly.

One of the primary goals of this amendment is to align the existing interconnection regulatory framework with modern network structures. It also aims to simplify the transition from Long Distance Charging Area (LDCA) and Short Distance Charging Area (SDCA) interconnection to License Service Area (LSA) level interconnection.

According to the official statement, transferring traffic to LSA-level Points of Interconnection (POI) will streamline the routing process and enable more efficient management of limited numbering resources. Additionally, this shift is expected to reduce latency and enhance service reliability.

Traffic currently recorded as Minutes of Usage (MOU) at LDCA/SDCA level POIs will be gradually transitioned to LSA-level POIs over the next three years. After this period, all traffic exchanges will occur exclusively at LSA or service area level POIs.

The amended regulations also mandate service providers to establish IP-based interconnections. Following the implementation of these rules, all new interconnections will be IP-based. Existing POIs operating on E1/TDMA-based interconnections will also be transitioned to IP-based frameworks within three years. This change is anticipated to improve bandwidth efficiency, call quality, and overall performance throughout the call lifecycle.

In determining the maximum call handling capacity of a POI using IP-based interconnection, factors such as the number of concurrent sessions and link bandwidth will be considered. Moreover, service quality must adhere to TRAI’s established standards.

The regulations introduce a specific framework for surrendering POIs. Previously, the only provision allowed for disconnecting a POI, which meant halting traffic exchange. This new process enables a service provider to voluntarily surrender a POI based on operational needs, such as reduced traffic, withdrawal of services from an area, or changes in traffic routing. This flexibility is expected to enhance financial efficiency.

The existing bank guarantee framework remains intact, but the validity period for submitted bank guarantees has been extended from six months to twelve months based on reassessment. A revised method for determining the maximum limit of bank guarantees for POIs, including IP-based interconnections, has also been introduced.

To address delays in the payment of interconnection charges, a specific provision has been added. The interest rate for such payments will be mutually agreed upon by service providers, capped at two percent above the State Bank of India’s one-year Marginal Cost of Funds Based Lending Rate (MCLR).

The amended regulations establish reporting requirements for monitoring the transfer of traffic from LDCA/SDCA level POIs to LSA level POIs, as well as the transition from E1/TDMA-based interconnections to IP-based interconnections.

A phased financial penalty structure has been implemented for violations of these regulations, ensuring a more effective and proportional enforcement of the regulatory framework. The measures related to delayed payments, reporting requirements, and financial penalties are expected to facilitate compliance with these new rules.

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