TRAI Initiates Overhaul of Interconnection Regulations to Align with 5G, Satellite Tech

TRAI’s review seeks to address regulatory bottlenecks and redefine interconnection standards to make them future-ready.

In a major regulatory development, the Telecom Regulatory Authority of India (TRAI) has launched a comprehensive consultation process for reviewing its interconnection regulations through the release of a new consultation paper titled “Review of Existing TRAI Regulations on Interconnection Matters.” This initiative seeks to modernise the interconnection framework to reflect the changing technological landscape and address the evolving needs of India’s dynamic telecommunications sector.

The consultation process, grounded in Section 11(1)(b) of the TRAI Act, 1997, empowers the Authority to set interconnection terms between service providers, ensure technical compatibility, and facilitate seamless connectivity. With this mandate, TRAI is now revisiting nine key interconnection regulations that form the backbone of telecom interoperability in the country.

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Why the Review is Needed Now

Over the last two decades, the interconnection regulatory framework in India has undergone considerable evolution. Beginning with The Register of Interconnect Agreements Regulations, 1999, and culminating in the Telecommunication Interconnection Regulations, 2018, these regulations have been periodically amended to accommodate market dynamics, emerging technologies, and policy shifts. The most recent update came via The Telecommunication Interconnection (Second Amendment) Regulations, 2020, notified on July 10, 2020.

However, the rapid shift towards IP-based networks, proliferation of 4G/5G technologies, and emergence of satellite communication platforms have outpaced existing regulatory structures. Many aspects of the older frameworks are now considered outdated and insufficient for ensuring robust interconnection in a next-gen telecom environment.

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Scope of the Review and Key Focus Areas

TRAI’s review seeks to address regulatory bottlenecks and redefine interconnection standards to make them future-ready. The key focus areas outlined in the consultation paper include:

1. Transition to IP-Based Interconnection

The rollout of 4G and 5G networks has made IP-based interconnection crucial for improving service quality. The consultation paper aims to examine how best to transition from legacy interconnect systems to fully IP-enabled interconnectivity.

2. Level of Interconnection

Currently, interconnection is mandated at:

• Licensed Service Area (LSA) level for mobile networks

• District/Tehsil level for fixed-line telephone networks

TRAI is exploring whether this hierarchical interconnection model needs to be revisited, streamlined, or upgraded to align with next-generation networking demands.

3. Satellite-Based Network Integration

With India's growing interest in satellite communication systems, particularly for rural and remote areas, the consultation will explore:

• Nature and locations of Points of Interconnect (POIs)

• Interconnection dynamics between satellite earth stations, mobile operators, and fixed-line services

4. Regulatory Charges and Revenue Models

The paper aims to review various financial elements involved in interconnection:

• Interconnection Usage Charges (IUC) such as:

  • Origination

  • Transit

  • Carriage

  • Termination

  • International termination

• Port charges and transit carriage charges

• Viability of the existing Reference Interconnect Offer (RIO) framework

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List of Nine Regulations Under Review

The consultation paper specifically addresses the following regulations:

1. The Telecommunication Interconnection Regulations, 2018

2. The Short Message Services (SMS) Termination Charges Regulations, 2013

3. Intelligent Network Services in Multi-Operator and Multi-Network Scenario Regulations, 2006

4. TRAI (Transit Charges for BSNL's Cell One Terminating Traffic) Regulations, 2005

5. The Telecommunication Interconnection Usage Charges Regulations, 2003

6. The Telecommunication Interconnection (Reference Interconnect Offer) Regulations, 2002

7. The Telecommunication Interconnection (Charges and Revenue Sharing) Regulations, 2001

8. The Telecommunication Interconnection (Port Charges) Regulations, 2001

9. The Register of Interconnect Agreements Regulations, 1999

Each of these has played a role in fostering fair competition, cost-based pricing, transparency, and consumer-centric service delivery across multiple telecom operators.

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Stakeholder Involvement and Public Participation

TRAI has invited written comments on the issues raised in the consultation paper from all stakeholders by 8th December 2025, with counter-comments accepted until 22nd December 2025. This open engagement strategy ensures that views from telecom operators, industry bodies, tech innovators, and consumers are integrated into the policy-making process.

Submissions are preferred in electronic format and may be sent to adv-nsl1@trai.gov.in. For further information or clarification, stakeholders may contact Shri Sameer Gupta, Advisor (Networks, Spectrum & Licensing-I), TRAI, at +91-11-20907752.

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Pre-Consultation Phase and Industry Input

This comprehensive consultation follows an earlier pre-consultation paper released on 3rd April 2025, which sought early-stage feedback from stakeholders on the future of interconnection in India. The current consultation paper reflects the outcome of that input combined with TRAI’s internal regulatory and technical analysis.

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Towards a Future-Ready Interconnection Ecosystem

By revisiting the foundational principles of interconnection regulation, TRAI is laying the groundwork for a flexible, resilient, and innovation-friendly telecom ecosystem that can support India’s ambitions in:

• 5G and 6G rollouts

• Satellite broadband

• Digital economy expansion

• Universal service delivery in remote areas

This initiative marks a significant policy shift that will influence the cost, quality, and coverage of telecom services across India for years to come.