Technology · India Bureau
TRAI caps charges for IP-based network links, accelerates shift from legacy technology
India's telecom regulator has imposed price controls on internet-based interconnection services while pushing operators to phase out decades-old port technology used for routing calls between networks.
LSN India ·
The Telecom Regulatory Authority of India (TRAI) has introduced new pricing caps for internet protocol-based links that connect telecom operators' networks, marking a significant step in modernizing India's telecommunications infrastructure. The move aims to reduce interconnection costs while encouraging service providers to migrate away from legacy port technology that has remained largely unchanged for decades. Industry observers view the regulation as part of TRAI's broader strategy to streamline network operations and reduce technical debt across the sector. The regulator's decision comes as operators face mounting pressure to upgrade aging systems that continue to support a substantial portion of inter-operator call routing. By capping charges for IP-based interconnection services, TRAI seeks to make modern technology more economically attractive than maintaining older infrastructure. The phased retirement of legacy ports is expected to improve network efficiency and reduce maintenance costs for telecom companies operating in India. Operators will likely need to invest in infrastructure upgrades to comply with the new regulatory framework, though the price controls on IP-based alternatives are intended to make this transition financially viable.