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TRAI sets January 2027 start for interconnection reforms
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TRAI released amended telecom interconnection regulations on November 3, with effect from January 1, 2027. The reforms address how service providers exchange network traffic; they are separate from the consumer-complaint amendments announced on November 2.
All new interconnections established after the regulations take effect must be IP-based. Existing E1/TDM points of interconnection must migrate to IP-based links within three years, in phases.
The rules also require existing traffic at local charging-area interconnection points to move to Licensed Service Area-level points within three years. Providers may mutually agree on the locations where traffic is handed over. The release describes simpler routing and improved reliability as expected benefits, not measured results already achieved.
The amendments set a capacity framework for IP interconnection and distinguish voluntary surrender of an interconnection point from disconnection arising from disputes. Bank-guarantee reassessment intervals and the validity of reassessed guarantees increase from six to 12 months.
Interest on delayed interconnection-related payments is to be agreed between providers, capped at SBI’s one-year MCLR plus two percent. Reporting and graded financial disincentives support enforcement. These are inter-provider requirements, not a new retail tariff or a customer loan rate.
The confirmed milestone is publication of the rules. Their January 2027 start and phased migration should not be presented as a network conversion completed today.
Source: TRAI, through Ministry of Communications/PIB, November 3, 2026, release 2331941.
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