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The Telecom Regulatory Authority of India has finalised the Telecommunication Interconnection (Third Amendment) Regulations, 2026, which take effect on January 1, 2027, following a multi-stage public consultation.
✦ AI SUMMARY 30-second read
- All new interconnections must be IP-based, with existing systems migrating within three years.
- Interconnection points shift from legacy charging areas to Licensed Service Areas, with traffic migration also set within three years.
- Bank guarantee reassessment intervals are extended from six to twelve months, and delayed-payment interest is capped at SBI's one-year MCLR plus two percent.
Why it matters: The amendments update interconnection rules to reflect current technology and introduce clearer financial and compliance frameworks for all telecom service providers.
This summary was generated by AI. Editors may review and update it.
Document details
| Document type | Rules & Regulation |
|---|---|
| Issued by | CERT-In / DoT / TRAI |
| Region | India |
| Published | 3 November 2026 |
TRAI has released the Telecommunication Interconnection (Third Amendment) Regulations, 2026, which will come into force on January 1, 2027. The regulations revise existing interconnection rules governing how telecom service providers connect and exchange traffic across networks.
The finalisation followed a multi-stage process that began with a Pre-Consultation Paper on April 3, 2025, a Consultation Paper on November 10, 2025, and an Open House Discussion on January 28, 2026. TRAI evaluated stakeholder input from each stage before formalising the amendment.
What the document says
The amendment permits service providers to mutually agree on interconnection points at the Licensed Service Area level, moving away from the earlier Long Distance and Short Distance Charging Area framework. Existing traffic from previous points of interconnection is to be migrated to the LSA level within three years.
All new interconnections must be IP-based. Existing systems are also required to transition to IP within three years. The regulations establish definitions for maximum call-handling capability at points of interconnection to support quality management.
A new framework governs the voluntary surrender of points of interconnection, replacing the previous disconnection process. The bank guarantee reassessment interval is extended from six months to twelve months, and service providers may agree on interest rates for delayed interconnection charge payments, subject to a cap of the State Bank of India's one-year Marginal Cost of Funds-based Lending Rate plus two percent.
New reporting requirements will track the transition of traffic and interconnection methods, and a graded financial disincentive framework will apply to infractions based on their severity.
Who is affected
All telecom service providers operating under interconnection arrangements in India are subject to the revised regulations. The changes affect financial agreements, infrastructure planning and compliance reporting obligations across the sector.
Background
TRAI's authority to set interconnection terms derives from the TRAI Act of 1997. The 2026 amendment is the third revision to the Telecommunication Interconnection Regulations of 2018, which were the baseline framework reviewed during the consultation process.
What happens next
The regulations take effect on January 1, 2027. Service providers have three years from that date to complete the migration of existing traffic and systems to LSA-level IP-based interconnection. The full text of the regulations is available on the TRAI website, and queries may be directed to TRAI's Advisor on Networks and Spectrum.