#interconnection agreement definition

The country's major telcos, PLDT, Globe, and new player DITO, have once again become a hot topic online when they announced that they had signed interconnection agreements with the latter. But some of you might be asking, what is an interconnection agreement? Before DITO, six of the country’s leading telecommunications companies, including Globe and PLDT, signed interconnection agreements in 2001. In DITO's case, it's obvious that it wants its subscribers to be able to call or send SMS to Globe and Smart subscribers and entered interconnection agreements with both, just in time before its commercial launch. A telco that does not enter an agreement for interconnection with other telcos might find itself and its subscribers isolated. That's why it's logical to settle interconnection agreements before a telco's commercial rollout. However, interconnection agreements are not simple and easy to implement. Internet connectivity or peering is a different topic altogether, though, and is not part of the interconnection agreement's scope. Read more in our articles including "Interconnection Agreement: What is it for?" and "WATCH: Interconnection Agreement Explained!".