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India's telecom regulator has overhauled its interconnection framework, mandating IP-based links for all new connections and simplifying traffic-exchange geography to improve call quality and network efficiency.
✦ AI SUMMARY 30-second read
- All new interconnections established after January 1, 2027 must be IP-based; existing E1/TDM links must migrate within three years.
- Traffic exchange points will shift from LDCA/SDCA levels to the broader LSA level, with existing points migrating within three years.
- Bank guarantee validity and reassessment periods are extended from six months to 12 months, and a graded penalty system for non-compliance is introduced.
Why it matters: The changes will affect every telecom service provider operating in India and are expected to reduce latency, raise call quality and simplify network routing.
This summary was generated by AI. Editors may review and update it.
Document details
| Document type | Framework |
|---|---|
| Issued by | CERT-In / DoT / TRAI |
| Region | India |
| Published | 3 November 2026 |
The Telecom Regulatory Authority of India issued the Telecommunication Interconnection (Third Amendment) Regulations, 2026 on Tuesday. The Ministry of Communications announced that the revised rules will come into force on January 1, 2027.
The amendment follows a review process that began with a pre-consultation paper on April 3, 2025, and continued with a consultation paper on November 10, 2025, after stakeholder feedback on the Telecommunication Interconnection Regulations, 2018 was incorporated.
What the document says
All new interconnections set up after the regulations take effect must be IP-based. Existing E1/TDM-based interconnections must be migrated to IP-based systems within three years. For IP-based links, call-handling capacity will be measured by concurrent session-handling capability and available link bandwidth, subject to prescribed quality-of-service standards.
On geography, traffic exchange will shift from the existing LDCA and SDCA levels to the broader LSA level. Telecom service providers will be able to mutually agree on the locations where traffic is exchanged. Existing interconnection points at LDCA and SDCA level will be moved to LSA-level points over three years.
TRAI has also introduced a voluntary surrender mechanism for points of interconnection, allowing operators to give up such points on grounds such as a fall in traffic, withdrawal of services or rerouting. For delayed payments, operators may mutually agree on an interest rate, capped at the State Bank of India's one-year MCLR plus two percentage points.
Bank guarantee validity after reassessment, as well as the reassessment period itself, have been extended from six months to 12 months. The method for calculating bank guarantee ceilings has also been revised. New reporting requirements will track migration to LSA-level points and the transition to IP-based systems, and a graded financial penalty system will apply to regulatory violations.
Who is affected
All telecom service providers operating under interconnection arrangements in India are covered by the amended regulations. The rules govern both the technical standards and the commercial terms under which these providers exchange traffic.
Section 11(1)(b) of the TRAI Act, 1997 empowers the regulator to prescribe interconnection terms and conditions and to ensure technical compatibility between different service providers.
What happens next
The regulations take effect on January 1, 2027, with three-year transition windows for both the geographic migration of interconnection points and the shift from E1/TDM to IP-based systems. Compliance will be tracked through the newly introduced reporting requirements, and penalties will be levied according to the graded system based on the nature and seriousness of any violation.