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Interconnection Agreement
I need an interconnection agreement between two telecommunications companies to facilitate the exchange of traffic and services. The agreement should include terms for network access, quality of service standards, cost-sharing arrangements, and a dispute resolution mechanism.
What is an Interconnection Agreement?
An Interconnection Agreement sets out the terms and rules for connecting different telecom networks in Pakistan. These contracts, regulated by the Pakistan Telecommunication Authority (PTA), allow operators to share infrastructure and exchange traffic, making it possible for customers of one network to communicate with users on other networks.
The agreement covers crucial details like technical standards, service quality requirements, and payment terms for sharing network resources. For example, when a call moves from Jazz to Telenor's network, this agreement governs how that handoff works and how the companies compensate each other. Under Pakistani law, all licensed operators must negotiate these agreements fairly to promote healthy competition.
When should you use an Interconnection Agreement?
You need an Interconnection Agreement when launching or operating a telecom network in Pakistan that will connect with other carriers. This becomes essential before establishing any technical interconnection points with other operators like Jazz, Telenor, or Zong, as the Pakistan Telecommunication Authority requires these agreements to be in place first.
The timing is critical - start negotiating these agreements at least 6-8 months before your planned network launch. This gives enough time to work through technical specifications, pricing structures, and regulatory compliance requirements. Moving forward without proper interconnection agreements in place risks service disruptions and potential PTA penalties.
What are the different types of Interconnection Agreement?
- Basic Network-to-Network Agreement: Standard interconnection terms between two telecom operators, covering voice and data exchange, with basic quality metrics
- Infrastructure Sharing Agreement: Focuses on sharing physical infrastructure like towers and fiber networks while including interconnection provisions
- Full-Service Interconnection: Comprehensive agreement covering voice, data, SMS, and advanced services with detailed service level agreements
- Mobile Virtual Network Operator (MVNO) Agreement: Specialized interconnection terms for virtual operators using established networks
- International Gateway Agreement: Specific provisions for operators handling international traffic routing and interconnection
Who should typically use an Interconnection Agreement?
- Telecom Operators: Primary parties to Interconnection Agreements, including major players like Jazz, Telenor, and Zong who negotiate and implement network sharing terms
- PTA Officials: Review and approve agreements to ensure compliance with Pakistani telecom regulations and fair competition rules
- Technical Teams: Engineers and network specialists who define technical specifications and implement interconnection points
- Legal Departments: In-house counsel who draft, review, and negotiate agreement terms
- Financial Officers: Handle billing, revenue sharing, and settlement arrangements between operators
How do you write an Interconnection Agreement?
- Network Details: Gather technical specifications of both networks, including capacity, protocols, and points of interconnection
- Regulatory Compliance: Review current PTA guidelines and licensing requirements for network interconnection
- Traffic Projections: Prepare estimated voice and data traffic volumes to determine interconnection capacity needs
- Quality Metrics: Define service level agreements, including uptime requirements and fault resolution times
- Financial Terms: Calculate interconnection charges, billing cycles, and settlement procedures
- Technical Standards: Document compatibility requirements and testing procedures for network integration
What should be included in an Interconnection Agreement?
- Identification Details: Full legal names of telecom operators, PTA license numbers, and registered addresses
- Technical Specifications: Detailed interconnection points, protocols, and network standards as per PTA guidelines
- Service Parameters: Quality metrics, traffic handling procedures, and maintenance schedules
- Financial Terms: Interconnection charges, billing cycles, and dispute resolution mechanisms
- Regulatory Compliance: References to relevant sections of Pakistan Telecommunication Act and PTA regulations
- Term and Termination: Agreement duration, renewal conditions, and exit procedures
- Force Majeure: Standard provisions adapted to Pakistani telecom sector requirements
What's the difference between an Interconnection Agreement and an Access Agreement?
An Interconnection Agreement differs significantly from an Access Agreement, though both deal with network relationships. While interconnection focuses specifically on telecom operators connecting their networks for call and data exchange, access agreements have broader applications across various infrastructure types.
- Scope and Purpose: Interconnection Agreements exclusively govern telecom network integration and traffic exchange. Access Agreements cover general infrastructure access rights, from real estate to IT systems
- Regulatory Framework: Interconnection Agreements must comply with specific PTA regulations and telecom laws. Access Agreements follow broader commercial law principles
- Technical Detail: Interconnection Agreements require extensive technical specifications for network protocols and quality metrics. Access Agreements typically focus more on usage rights and conditions
- Payment Structure: Interconnection involves complex traffic-based billing between operators. Access agreements usually have simpler, fixed-fee arrangements
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