A carrier interconnect agreement should state, in writing, how traffic is priced and billed, how rates change, how disputes are raised, when payment is due, what traffic is allowed, who carries fraud losses and how either side can end the relationship. Check each of these before the first call or message is sent.
Parties, services and scope
- Full legal names, registration numbers and addresses of both companies, matching the onboarding documents (see KYC between carriers).
- Services covered: voice termination, origination, A2P SMS, or several. One-way or two-way (bilateral) traffic.
- Whether the agreement is a framework, with rates and destinations sent separately in rate decks.
Rates, rate decks and changes
- Rate deck format, currency, and how it is delivered (email address, portal, API).
- Billing increment per destination, for example 1/1 or 60/60 (see billing increments).
- Notice period for rate increases and for decreases, and the time zone of effective dates (see rate changes and notice periods).
- What happens to traffic sent to a code that is not in the deck.
- Rules on surcharges, for example for calls with a CLI from outside the destination region, where a carrier applies them.
Billing, payment and credit
| Clause | What it should say |
|---|---|
| Billing cycle | Weekly, bi-weekly or monthly, and the time zone used to cut CDRs |
| Source of truth | Whose CDRs are used for invoicing |
| Payment term | Prepaid, or postpaid with days to pay after invoice |
| Credit limit | Amount, and what happens when it is reached |
| Netting | Whether mutual invoices are offset, and how |
| Late payment | Interest, suspension rights, notice before suspension |
More on payment models in prepaid vs postpaid terms.
Disputes
- Deadline to raise a billing dispute after receiving an invoice.
- A tolerance threshold: differences below an agreed percentage are not disputed.
- What evidence is required (CDR samples, summary by destination and day).
- Whether the disputed amount may be withheld while the undisputed part is paid.
- Time to resolve, and escalation steps.
The process itself is described in billing disputes and CDR reconciliation.
Traffic rules and quality
- Traffic types accepted or forbidden: conversational, call center, dialer, OTP, promotional SMS.
- CLI rules: the CLI must be valid and not manipulated; local regulation on caller ID applies (see CLI spoofing rules).
- Capacity: channels, CPS, SMS throughput.
- Technical details: IP addresses, codecs, signalling, or SMPP binds, usually in a technical annex.
- Any quality commitments, and how they are measured.
Fraud, liability and exit
- Who bears the cost of fraudulent traffic, such as IRSF or artificially inflated SMS, and the right to withhold payment for proven fraud.
- Duty to inform the other party quickly when fraud is detected.
- Compliance with laws in the countries involved, including data protection and sanctions.
- Limitation of liability, and exclusion of indirect losses.
- Confidentiality of rates, CDRs and customer data.
For the term and the exit, check:
- Duration and automatic renewal.
- Termination notice period for convenience, and immediate termination for breach or fraud.
- Final invoice and settlement of balances after termination.
- Governing law and jurisdiction, or arbitration.
This checklist is practical guidance, not legal advice. Have a lawyer review the agreement, especially the liability and governing law clauses.
When you buy through VoIPMatcher, we source the route from our carriers and manage it, so you deal with one counterpart instead of negotiating a new agreement for each destination. Your data is never shared or sold. Learn more about our VoIP termination and A2P SMS services, or request a VoIP route.
Frequently asked questions
What is an interconnection agreement in telecommunications?
It is the contract that lets two carriers exchange traffic: one terminates voice calls or SMS for the other, or both do in a bilateral deal. It sets the services, how rates and rate changes are handled, billing and payment terms, dispute rules, the traffic allowed, fraud liability and how either side can end it.
Is there an interconnect agreement template?
Many carriers use their own standard agreement, and templates circulate in the industry, but none fits every deal. Use a template only as a starting point, then check each clause against your traffic, payment terms and the countries involved. Have a lawyer review the liability, fraud and governing law clauses before signing.
How long does an interconnect agreement last?
Many wholesale agreements run for a fixed initial term and then renew automatically unless one side gives notice. They usually allow termination for convenience with a notice period, and immediate termination for breach or fraud. Check the renewal clause, the notice period and how final balances are settled after the end.
Do I need separate agreements for voice and SMS?
Not necessarily. One framework agreement can cover voice termination, origination and A2P SMS, with annexes for each service's technical setup and rates. Some carriers prefer separate agreements, because SMS has its own content rules, sender ID duties and fraud risks. Either way, the scope section should list every service covered.
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