Seamless interconnection is the backbone of a competitive telecom market. Examine how TRAI's 2026 amendments to the interconnection framework address technological obsolescence and inter-operator disputes.

Interconnection is the set of technical, operational and commercial arrangements that lets users on one network reach users on another [1]. TRAI holds this power under Section 11(1)(b) of the TRAI Act, 1997 [3]. Its Telecommunication Interconnection (Third Amendment) Regulations, 2026 amend the 2018 framework. They tackle two threats to seamless connectivity: ageing circuit technology and friction between operators.

Addressing technological obsolescence

• IP mandate: All new interconnections must be IP-based. Legacy E1/TDM POIs must move to IP within 3 years, in phases, which improves bandwidth efficiency and call quality [1].
• LSA-level interconnection: Interconnection moves from LDCA/SDCA to Licensed Service Area level. This means fewer POIs, simpler routing, lower latency and better use of scarce numbering resources [1].
• New capacity norms: IP POI capacity is set by concurrent sessions and link bandwidth, while the required QoS must still be met [1].
• Future-proofing: TRAI's review also examined satellite-based networks [2].

Addressing inter-operator disputes

• Surrender vs disconnection: A provider may voluntarily surrender a POI for its own operational needs. Disconnection is allowed only in exceptional cases caused by the other provider, which limits its use as a weapon against rivals [1].
• Flexibility: POI locations can be mutually agreed between the operators [1].
• Payment discipline: Interest on delayed payments is capped at SBI one-year MCLR + 2%. Bank-guarantee validity is extended from 6 to 12 months [1].
• Enforcement: Reporting requirements and graded financial disincentives apply the principle of proportionality [1].
• Legitimacy: The rules came after a full consultation with comments, counter-comments and an Open House Discussion [1][2].

Gaps that remain

• "Mutual agreement" may favour larger operators over new entrants. TRAI's ≤0.5% POI congestion benchmark gives an objective test of whether an operator is stalling [4].
• A POI surrender could become disguised disconnection if TRAI does not check the stated reasons.
• Satellite interconnection terms are not set out in the released summary [1][2].
• Operators report migration progress to TRAI, but there is no stated plan to publish it.

The amendment combines a technology upgrade with rules that make disputes harder. The way forward is to publish each operator's migration progress alongside TRAI's quarterly QoS data, scrutinise POI surrenders and set out satellite interconnection norms. Together these would give India the seamless, competitive and affordable connectivity that Digital India aims for.