Telecommunications Network Interconnection in Brazil: Regulation and Systems

Why interconnection is critical for your operation

If you operate a telephony network, interconnection determines whether your subscribers can communicate with the rest of the world. Without interconnection, your network is an island. Your customers can only call other customers on the same operator. For ISPs offering STFC, for regional operators, and for contact centers, understanding interconnection rules is an operational and financial necessity.

Interconnection in Brazil is regulated by Resolution 693/2018 (RGI) and was consolidated by Resolution 777/2025, which approved the RGST (General Regulation of Telecommunications Services). This article explains how to establish interconnection, how the billing and settlement process between operators works, and ABR Telecom's role in this ecosystem.

The three aspects of interconnection you need to master

Interconnection involves three dimensions that directly affect your operation: the physical, the logical, and the commercial.

The physical dimension is the connection between your network and the other operator's network. This connection can be made through fiber optics, radio links, or dedicated circuits. Points of interconnection (POIs) are the locations where networks physically meet, usually at one of the operators' facilities or at neutral points such as colocation data centers. For smaller operators, the choice of POI directly impacts transport costs to the interconnection point.

The logical dimension is the signaling and routing configuration between networks. For TDM interconnection, SS7 (ISUP) signaling is used. For IP interconnection, which is increasingly the standard, SIP signaling is used. Correct signaling configuration is what ensures calls are routed to the right destination and that caller identification is transmitted correctly. Signaling configuration errors cause failed calls, incorrect routing, and billing problems.

The commercial dimension covers the remuneration agreements for interconnection traffic. How much one operator pays another to complete calls on its network. These values are regulated by Anatel and reviewed periodically. Your voice operation's cost structure depends directly on these values.

How to establish interconnection in practice

If you are starting an STFC operation or expanding your network's interconnection, the process follows defined regulatory and technical steps.

The first step is identifying which operators you need to interconnect with. In most cases, the priority is major operators (Vivo, Claro, TIM) and the relevant regional operators in your service area. Interconnection can be direct, when you physically connect your network to the other operator's, or indirect, when you use a third operator's network as transit.

For direct interconnection, you need to negotiate the interconnection contract with the destination operator. The RGI guarantees that any operator authorized by Anatel has the right to interconnect its network under transparent and non-discriminatory conditions. The destination operator cannot refuse interconnection without regulatory justification. If you face difficulties in negotiation, Anatel has dispute resolution mechanisms.

For IP interconnection via SIP, the technical process involves configuring SIP trunks between your softswitch/SBC and the other operator's equipment, defining supported codecs, configuring quality of service (QoS) parameters, and testing routes and call routing.

Network usage values: how they affect your costs

Network usage values are the regulated prices that determine how much you pay (or receive) per interconnected call. Understanding these values is essential for pricing your voice services.

The VU-M (Mobile Network Usage Value) is what mobile operators charge for call termination on their networks. If your subscriber calls a mobile number, you pay VU-M to the mobile operator that completes the call.

The TU-RL (Local Network Usage Tariff) is what STFC operators charge for local call termination on their fixed networks. The TU-RIU (Inter-urban Network Usage Tariff) is the equivalent for long-distance calls.

Over the years, Anatel has promoted significant reductions in these values, following the international trend of approaching efficient cost. These reductions directly impacted consumer prices, especially for calls between different operators. For your operation, tracking revisions to these values is essential for keeping your plan pricing current.

Interconnection billing: DETRAF between operators

Billing and financial settlement for interconnection traffic are handled directly between operators through the DETRAF (Traffic and Service Provision Declaration Document). Each operator generates its own CDR records and negotiates bilaterally with interconnected operators.

ABR Telecom's role in DETRAF is limited to maintaining Annex 5, which contains the list of all EOTs (Traffic Origin Elements), and coordinating the DETRAF normalization groups among operators. ABR does not participate in billing or settlement itself.

For your operation, this means you need to ensure your CDR records are correct and that periodic reconciliation occurs with each interconnected operator. Discrepancies between your traffic records and those of the other operator generate billing disputes that can take months to resolve. A properly configured softswitch for generating standardized CDRs is essential in this process.

ABR Telecom's role: BA (Abnormality Bulletin)

ABR Telecom operates the BA (Boletim de Anormalidade / Abnormality Bulletin) system, used by operators to report interconnection problems. If you identify that calls to a specific operator are failing, that interconnection circuits are interrupted, or that there is quality degradation on a particular route, the BA allows you to register the incident and coordinate resolution with the other operator.

The BA system is especially useful for smaller operators that do not have a direct relationship with the technical teams of major operators. Instead of relying on informal channels, registering in the system creates an auditable trail and monitored resolution timelines.

IP interconnection: the path your network should follow

The migration from TDM to IP is an irreversible trend in interconnection. IP interconnection via SIP is more cost-efficient, more flexible in features, and simpler to scale. If your network still depends on TDM interconnection, planning the migration to IP should be a priority.

IP interconnection enables advanced features such as transcoding between codecs, STIR/SHAKEN support for origin verification, detailed quality reports per route, and scalability without needing to add physical E1 ports.

However, IP interconnection requires special attention to QoS parameters. Voice services demand low latency (under 150ms), low jitter, and low packet loss. If IP interconnection traverses congested paths or paths without traffic prioritization, call quality will suffer.

Rights and obligations in interconnection

The RGI guarantees that any operator authorized by Anatel has the right to request interconnection from any other operator. This right is fundamental for smaller operators and regional providers who, without interconnection, simply could not operate.

On the other hand, by interconnecting, you assume obligations. You must maintain interconnection quality, resolve incidents within regulatory timelines, pay the owed network usage values, and provide traffic reports when requested.

Resolution 777/2025 consolidated various interconnection rules within the RGST, simplifying the regulatory framework. For operators that already have established interconnection, the transition to the new regulatory model requires reviewing contracts and procedures to ensure compliance.

Planning your interconnection

If you are planning new interconnection or expanding existing ones, consider the following practical points. Evaluate whether direct interconnection is economically viable or whether the transit model (indirect interconnection) is more suitable for your traffic volume. Prioritize IP interconnection via SIP, which offers lower operational cost and greater flexibility. Ensure your softswitch and SBC are correctly configured for signaling, routing, and standardized CDR generation for billing reconciliation with interconnected operators. Implement active monitoring of interconnection routes to identify problems before they affect subscribers.

References

• Resolution 693/2018 - General Interconnection Regulation (RGI)
• Resolution 777/2025 - General Regulation of Telecommunications Services (RGST)