What Does Interconnection Agreement Mean?
An interconnection agreement is a business contract between telecommunication organizations for interconnecting their networks and exchanging telecommunication traffic. These agreements are present in both public switched telephone networks and the Internet.
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Techopedia Explains Interconnection Agreement
In public switched telephone networks, the interconnection agreement deals with settlement fees based on the call source and destination, the time-of-day, and the call duration.The common forms of interconnection on the Internet are settlement-free peering and Internet transits. Contracts for interconnection on the Internet is referred to as a peering agreement. These are complex contractual agreements, which often involve negotiation around the following:
- Payment schemes and schedules
- Coordination of routing policies
- Acceptable use policy
- Technical standards
- Traffic balancing requirements
- Coordination of network operation
- Dispute resolution
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