TRAI shifts telecom interconnection to state-level, mandates transition to IP-based networks

The Telecom Regulatory Authority of India on 3 November 2026 released the Telecommunication Interconnection (Third Amendment) Regulations, 2026, which will take effect from 1 January 2027. TRAI issued the amendment under Section 11(1)(b) of the TRAI Act, 1997, which empowers it to prescribe the terms and conditions of interconnection between telecom service providers. The regulations followed a Pre-Consultation Paper dated 3 April 2025, a Consultation Paper dated 10 November 2025, seventeen written comments and nine counter-comments from stakeholders, and an Open House Discussion held on 28 January 2026.

The amendment moves the level at which service providers hand over or take over telecommunications traffic from the existing Long Distance Charging Area (LDCA) and Short Distance Charging Area (SDCA) levels to the broader Licensed Service Area (LSA) level, which TRAI says will simplify routing, free up scarce numbering resources, lower latency and improve service reliability. Existing traffic at LDCA/SDCA-level points of interconnection must be migrated to LSA-level points within three years, in a phased manner. All new interconnections established after the regulations take effect must be IP-based, and existing E1/TDM-based points of interconnection must also be migrated to IP-based interconnection within three years, improving bandwidth efficiency and call quality.