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Interconnect Services Agreement

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INTERCONNECT SERVICES AGREEMENT

This Interconnect Services Agreement (the “Agreement”) is made as of the day of , by and between Service Provider: with principal address at (hereinafter “Service Provider”) and Carrier: with principal address at (hereinafter “Carrier”). Service Provider and Carrier are each a “Party” and collectively the “Parties.”

RECITALS

WHEREAS, Service Provider operates interconnection facilities, switches, trunks and related network elements used to convey voice, data and signaling traffic and provides interconnect and transport services to communications carriers;

WHEREAS, Carrier desires to interconnect with Service Provider’s network for the exchange of traffic under the terms and conditions set forth herein; and

WHEREAS, the Parties desire to define the services, obligations, rates, performance standards and other terms applicable to the interconnection and provision of Services.

NOW, THEREFORE, in consideration of the mutual covenants set forth below, the Parties agree as follows:

1. DEFINITIONS

1.1 “Agreement” means this Interconnect Services Agreement and all exhibits and Work Orders executed hereunder. 1.2 “Services” means the interconnect, transport, trunking, signaling and any ancillary services expressly described in a Work Order. 1.3 “Point of Interconnection” or “POI” means the physical demarcation point where the Parties interconnect networks as specified in the applicable Work Order. 1.4 “Work Order” means a mutually executed document describing specific Services, technical specifications, rates and schedules which is subject to the terms of this Agreement.

2. SCOPE OF SERVICES

2.1 Service Provider shall provide the Services described in each Work Order in a professional manner and in accordance with generally accepted industry standards. Carrier shall provision and maintain facilities and equipment necessary to connect to Service Provider’s POI. 2.2 Each Work Order shall specify technical requirements, test plans, acceptance criteria and service commencement dates. Service Provider’s obligation to perform Services under a Work Order is conditioned upon Carrier’s timely performance of its obligations, including delivery of required traffic engineering information and payment of any non-recurring charges.

3. SERVICE LEVELS AND PERFORMANCE

3.1 Service Provider shall use commercially reasonable efforts to meet the service levels set forth in the applicable Work Order, including provisioning intervals, mean time to repair and congestion thresholds. 3.2 If Service Provider materially fails to achieve a committed service level, Carrier shall be entitled to service credits as the sole and exclusive remedy for such failure, provided Carrier submits a written claim with supporting data within thirty (30) days of the failure. 3.3 Credits shall be calculated in the manner stated in the Work Order and shall not exceed the monthly recurring charge for the affected Service.

4. RATES, INVOICING AND PAYMENT

4.1 Charges for Services shall be set forth in each Work Order. Carrier shall pay all charges in accordance with the invoice terms. 4.2 Service Provider shall invoice monthly in arrears unless otherwise specified. Carrier shall pay all undisputed amounts within days of invoice date. Disputed amounts must be notified in writing with supporting documentation within fifteen (15) days of receipt; the undisputed portion shall remain payable.

5. TAXES AND FEES

All rates and fees are exclusive of taxes, duties, assessments and governmental charges. Carrier shall be responsible for any taxes or fees applicable to Carrier’s use of the Services, except taxes on Service Provider’s income. If Service Provider is required to collect or remit taxes, Service Provider may invoice such amounts in addition to the charges.

6. TERM; TERMINATION; SURVIVAL

6.1 Term. This Agreement shall commence on the effective date and continue for an initial term of years, and shall automatically renew for successive one (1) year periods unless either Party provides written notice of non-renewal at least sixty (60) days prior to the end of the then-current term.

6.2 Termination for Cause. Either Party may terminate this Agreement for material breach if the breaching Party fails to cure within thirty (30) days after receipt of written notice specifying the breach. 6.3 Termination for Insolvency. Either Party may terminate upon the insolvency or bankruptcy of the other Party. 6.4 Survival. Sections regarding payment, confidentiality, indemnification, liability limitations and any other provisions that by their nature survive termination shall survive expiration or termination of this Agreement.

7. CONFIDENTIALITY

7.1 Definition. “Confidential Information” means non-public information disclosed by one Party to the other, including technical, financial, commercial and network operations information. 7.2 Obligations. Receiving Party shall not disclose Confidential Information to third parties except to its employees, contractors or advisors who have a need to know and who are bound by confidentiality obligations no less protective than those herein. 7.3 Exclusions. Confidential Information does not include information which is or becomes publicly available other than by breach of this Agreement, or which is independently developed by the Receiving Party without use of the Disclosing Party’s Confidential Information. 7.4 Duration. The confidentiality obligations shall remain in effect for three (3) years following termination or expiration of this Agreement, except that trade secrets shall remain protected for as long as they meet the legal definition of a trade secret.

8. INTELLECTUAL PROPERTY

8.1 Ownership. Each Party retains all right, title and interest in its preexisting intellectual property. No license to a Party’s intellectual property is granted except as expressly set forth in this Agreement. 8.2 License. To the extent necessary for the performance of Services, each Party grants the other a limited, non-exclusive, non-transferable license to use its marks and documentation solely during the term of this Agreement.

9. LIABILITY AND INDEMNIFICATION

9.1 Indemnification. Each Party (the “Indemnitor”) shall indemnify, defend and hold harmless the other Party (the “Indemnitee”) from and against third-party claims arising out of Indemnitor’s negligence, willful misconduct or breach of this Agreement, provided Indemnitee provides prompt notice and reasonable cooperation in the defense. 9.2 Limitation of Liability. Except for liability arising from gross negligence, willful misconduct, indemnification obligations, or infringement of intellectual property, neither Party’s aggregate liability for any and all claims under this Agreement shall exceed the greater of (a) the total amounts paid or payable by Carrier to Service Provider under the Work Order giving rise to the claim in the twelve (12) months preceding the claim, or (b) Fifty Thousand Dollars (USD 50,000). In no event shall either Party be liable for lost profits, loss of business or special, incidental or consequential damages.

10. INSURANCE

Each Party shall maintain insurance coverage appropriate to its business, including commercial general liability and, if applicable, professional liability and cyber liability. Upon reasonable request, a Party shall provide certificates of insurance evidencing coverage; such disclosure shall not waive confidentiality.

11. AUDIT; RECORDS

Each Party shall maintain complete and accurate records related to usage, billing and performance of the Services for a period of at least twenty four (24) months. Either Party may audit the other Party’s records with five (5) business days’ notice during normal business hours; audits shall be limited to once per calendar year unless a material dispute exists. Any discrepancies discovered shall be reconciled promptly and payment adjustments made.

12. ASSIGNMENT

Neither Party may assign this Agreement without the prior written consent of the other Party, except that either Party may assign this Agreement to an affiliate or in connection with a merger, acquisition or sale of substantially all assets provided the assignee assumes the assigning Party’s obligations. Any purported assignment in violation of this Section shall be void.

13. NOTICES

All notices required or permitted under this Agreement shall be in writing and delivered by hand, overnight courier, or certified mail, return receipt requested, to the addresses below or to such other address as either Party designates in writing. Notices are effective upon receipt.

14. AMENDMENTS; WAIVER; COUNTERPARTS

14.1 No amendment or modification of this Agreement shall be effective unless in writing and signed by authorized representatives of both Parties. 14.2 The failure of either Party to enforce any provision shall not constitute a waiver of future enforcement of that or any other provision. 14.3 This Agreement may be executed in counterparts, each of which shall be deemed an original and all of which together shall constitute one and the same instrument.

15. GOVERNING LAW; ENTIRE AGREEMENT; SEVERABILITY

This Agreement shall be governed by and construed in accordance with the laws of the jurisdiction agreed below without regard to conflict of law principles. This Agreement, together with any Work Orders executed hereunder, constitutes the entire agreement between the Parties with respect to the subject matter and supersedes all prior and contemporaneous agreements. If any provision of this Agreement is determined to be invalid or unenforceable, the remainder of the Agreement shall remain in full force and effect and the invalid provision shall be reformed to the minimum extent necessary to make it enforceable.

16. MISCELLANEOUS

16.1 Independent Contractors. The Parties are independent contractors and nothing in this Agreement creates a partnership, joint venture or agency relationship. 16.2 Publicity. Neither Party shall use the other Party’s name or trademarks in any press release or public announcement without prior written consent, except as required by law. 16.3 Force Majeure. Neither Party shall be liable for delays or failures caused by events beyond its reasonable control, including acts of God, labor disputes, governmental actions, or failure of suppliers, provided the affected Party uses commercially reasonable efforts to mitigate the impact.

Service Provider:

By:

Date:

Carrier:

By:

Date:

Enter text✕

What the Interconnect Services Agreement Covers

An Interconnect Services Agreement is a commercial contract that governs technical, operational, financial, and regulatory relationships between two network operators or service providers that exchange traffic or interconnect networks. Typical provisions allocate responsibilities for provisioning, testing, fault resolution, billing and settlement, service levels, change management, and security. Parties use this agreement to set performance metrics, escalate operational issues, and define billing disputes and indemnities. For U.S. transactions it is usually governed by contract law in a chosen state and may reference regulatory obligations from agencies such as the Federal Communications Commission when applicable.

Why a Clear Interconnect Agreement Matters

A well-drafted agreement reduces operational disputes, clarifies cost allocation, and limits regulatory exposure by documenting technical handoffs, SLAs, and escalation paths.

Why a Clear Interconnect Agreement Matters

Who Typically Prepares and Signs This Agreement

Network operators, wholesale carriers, MVNOs, cloud connectivity vendors, and enterprise IT teams commonly use Interconnect Services Agreements for commercial traffic exchange and managed connectivity.

  • Carrier operations and peering teams: negotiate technical handoff points, capacity, and fault-handling responsibilities.
  • Commercial and finance teams: define billing, settlement cycles, and dispute resolution procedures to limit revenue leakage.
  • Legal and regulatory teams: ensure compliance with telecommunications rules, privacy obligations, and export controls.

Multiple internal stakeholders should review the draft—technical, commercial, security, and legal—to ensure operational feasibility and legal enforceability before signature.

Core Clauses Every Interconnect Services Agreement Should Include

A concise checklist of core contract elements helps negotiators validate completeness before execution.

Scope of Services

Precise description of interconnect points, traffic types, protocols, and capacity thresholds to avoid ambiguity in operational handoffs.

Service Levels

Measured performance targets (latency, packet loss, availability) with thresholds, measurement methodology, and credit/penalty mechanisms for missed SLAs.

Billing & Settlement

Rates, billed quantities, invoicing frequency, dispute resolution timelines, and netting or reconciliation procedures.

Security & Privacy

Obligations for encryption, incident notification, access controls, and applicable privacy laws including HIPAA or state data laws where relevant.

Operational Procedures

Provisioning, testing, maintenance windows, change management, and contact lists for escalation and outage coordination.

Liability & Indemnity

Caps on damages, indemnification triggers, exclusions for indirect damages, and allocation for regulatory fines or third-party claims.

Step-by-Step: How to Complete the Agreement

Follow these sequential steps to prepare a usable and enforceable Interconnect Services Agreement.

  • 01
    Draft: Populate parties, scope, pricing, and SLAs based on network design and forecasts.
  • 02
    Review: Operational, finance, security, and legal teams review for feasibility and compliance.
  • 03
    Negotiate: Exchange redlines, confirm commercial terms, and resolve technical handoff points.
  • 04
    Execute: Authorized signatories sign; distribute fully executed copies to stakeholders and provisioning teams.

How to Configure an Online Signing Workflow

Set up a defined signing workflow to ensure correct signer order, authentication, and record retention for e-signed agreements.

Field Configuration
Signer Order Sequential from initiating carrier to counterparty with copy to finance and operations.
Authentication Email link plus SMS code or SSO for corporate signers to prove identity.
Templates Use template for standard clauses and update pricing exhibits per deal.
Notifications Automatic reminders at 3, 7, and 14 days for outstanding signatures.

Where to Send and Store the Executed Agreement

Identify destination systems and recipients so operational teams can provision services promptly after signature.

  • Operations: Upload executed agreement to carrier OSS and notify NOC for provisioning steps.
  • Finance: Send a copy to accounts payable/receivable to start billing cycles and credit checks.
  • Legal: Retain executed document in contract repository and legal matter tracking system.
  • Secure Archive: Store PDF in encrypted document storage with access controls and audit logging.

Digital Signing and Integration Considerations

Choose a platform that supports required authentication, audit trails, and integrations with your CRM and document storage.

  • Authentication: Email, SMS, SSO or advanced MFA options.
  • Audit Trail: Captures IP, timestamp, and action history.
  • Integrations: CRM and storage connectors reduce manual uploads.

Confirm the platform supports ESIGN/UETA compliance, secure storage, and the export of a tamper-evident signed PDF for records.

Typical Timelines and Notice Periods to Track

Key dates and deadlines reduce operational surprises and preserve contractual remedies when incidents occur.

Service Activation:

Standard provisioning target: 15–45 days from executed agreement, depending on circuit lead times.

SLA Measurement Window:

Monthly measurement periods with credits applied on the month following the failure.

Billing Cycle:

Invoicing typically monthly with net 30 payment terms unless otherwise stated.

Change Notice:

30–90 days’ notice for material changes to rates or interconnect specifications.

Termination Notice:

Typically 30–180 days depending on contract term and migration complexity.

Common Mistakes to Avoid

  • Vague service descriptions that lead to disputes and finger-pointing.
  • Omitting measurement methodology for SLAs or credit calculations.
  • Failure to specify escalation paths and responsible contacts.
  • Mixing provisional oral arrangements with the written contract.

Primary Risks and Penalties from Errors

Service Disruption: Operational outages and lost revenue exposure.
Regulatory Fines: Potential FCC or state penalties for noncompliance.
Contract Invalidity: Defective execution may lead to unenforceability.
Billing Disputes: Delayed payments and reconciliation costs.
Data Breach Liability: Costs and notification obligations following security incidents.
Reputational Harm: Customer churn and partner distrust.

eSignature Pricing and Feature Snapshot for Contract Execution

Compare common commercial criteria across vendors; signNow appears first for parity with platform pricing and features.

signNow DocuSign Adobe Sign PandaDoc HelloSign
Starting Price $8/user/mo $15/user/mo $14/user/mo $19/user/mo $15/user/mo
Free Trial 7-day free trial Varies Varies Yes, limited Yes, limited
Bulk Send Yes Yes Yes Yes No
Audit Trail Yes Yes Yes Yes Yes
HIPAA Compliant Yes Yes Yes No No

Real-World Examples of Digital Contract Execution

Below are brief customer examples illustrating digital signature use in commercial workflows.

Tech Data — Enterprise Operations

Tech Data standardized contract execution across internal teams to speed revenue recognition.

  • The deployment integrated eSign with order systems for automated routing.
  • The result was faster internal approvals and improved customer service while preserving audit trails and compliance controls across high-volume transactions.

Xerox — Systems Integration

Xerox connected eSignature to NetSuite for end-to-end agreement lifecycle management.

  • Integration automated contract storage and billing triggers.
  • This reduced manual uploads, ensured accurate invoice initiation from signed exhibits, and maintained a consolidated, auditable contract repository for compliance reviews.

Frequently Asked Questions About Interconnect Agreement Execution

Answers to common questions about signing, enforceability, and practical execution of Interconnect Services Agreements.


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