Foreign Investment

Interconnection and Settlement Disputes between Carriers

Scenario: subscribers of network A constantly fail to reach network B while on-net calls work fine. Behind this technical symptom may sit an interconnection dispute between two carriers — with users suffering first.

Interconnection: a legal duty, not a favor

Under Telecom Law 24/2023/QH15, carriers owe a duty to interconnect their networks with others upon request where technically feasible. Interconnection lets subscribers call across networks — unreasonable refusal is prohibited for breaking national network unity and restricting competition.

Interconnection charges: agreement first, regulatory backstop

Termination rates (what the receiving network charges the originating network) are negotiated in interconnection contracts. Where parties cannot agree, the telecom regulator may intervene as prescribed — setting principles or even rates to safeguard healthy competition. Unlike retail tariffs (operator-set), interconnection charges are regulated for their direct competitive impact.

Three common dispute types

  • Technical disputes: poor interconnection quality, peak-hour congestion, one side “squeezing” interconnection capacity as negotiation leverage — prohibited conduct.
  • Rate disputes: disagreements on levels, calculation methods, or late payment of interconnection charges — high-value given the massive inter-carrier cash flows.
  • Bypass fraud: illegally routing traffic to dodge interconnection charges — breaching contracts and risking administrative or criminal penalties.

Resolution: from negotiation to regulatory intervention

The typical ladder: direct negotiation per the interconnection contract → mediation/arbitration per agreed clauses → regulatory intervention (for interconnection duties and rates) → court litigation. For technical disputes harming users at scale, regulators may intervene urgently to restore interconnection before adjudicating fault.

Frequently asked questions

1. May a carrier refuse interconnection with another?

Not unreasonably. The 2023 Telecom Law imposes an interconnection duty upon request where technically feasible; unreasonable refusal is prohibited.

2. Who sets interconnection charges?

Carriers negotiate them in interconnection contracts. Where they cannot agree, the regulator intervenes as prescribed to protect healthy competition.

3. Cross-network calls keep dropping — who do I complain to?

Your own carrier, and optionally the telecom regulator — cross-network interconnection quality is the carriers’ mutual and user-facing duty.

4. What about late interconnection payments?

Contractual penalties apply; the aggrieved party may seek regulatory intervention and sue for the debt under civil and commercial law.

5. How is interconnection bypass fraud handled?

It breaches the interconnection contract and may draw administrative penalties — or criminal liability where criminal elements exist.


This article has been quality-reviewed by the FLAW AI Legal Council.