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Interconnection meaning

What does Interconnection mean?
In practice, interconnection is the linking—directly or indirectly, by physical or logical means—of one Public Electronic Communications Network to another so that users of one network can (a) communicate with users of the other; and (b) use services provided by means of the other network (whether provided by that network’s operator or by a third party). This mirrors the statutory definition in the UK (Communications Act 2003, s.151) and the Irish implementation of the EU Electronic Communications Code; usage is broadly consistent across England & Wales, Scotland, Northern Ireland and Ireland. Key features and significance for telecoms regulation and contracts: - Covers physical and logical links, including indirect links via a third network; enables end-to-end connectivity and access to services. - Forms the basis of interconnection agreements and reference offers for call/SMS termination, transit and related wholesale services. - Subject to Ofcom and ComReg oversight, including SMP-based obligations (e.g., access on fair, reasonable and non‑discriminatory terms, transparency and, where imposed, cost orientation and technical standards). - Regulatory dispute resolution is available (e.g., Ofcom under ss.185–191 Communications Act 2003; ComReg under national EECC measures), including pricing and technical interworking issues. Interconnection is distinct from mere co-location or resale; it is the regulated network-to-network...
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NEWS
Germany: Cologne court enforces paid peering; Meta reroutes via transit after €20m order amid EU ‘fair share’ debate and proposals for binding EU-wide arbitration on data transport disputes

For years, the firms have sparred over who should foot the bill for data traffic. Matters escalated in May 2023 when a Cologne court held that their contract must be honoured, obliging Meta to pay Deutsche Telekom roughly €20m for 'data transport services'. It also requires Meta to cover future charges for direct interconnection. Meta has maintained it should fall under a no‑cost 'peering' arrangement and owe Deutsche Telekom nothing. The German operator counters that Meta previously delivered its traffic over paid, direct links into its network. According to Deutsche Telekom, Meta halted those payments during the coronavirus (COVID‑19) pandemic. The company then brought legal action demanding settlement. After months of discussions following the judgment, Meta opted to send its data via a transit provider into the network instead of using the former direct path. The ruling confirmed obligations between them. Meta disputes obligation to remit such fees. Talks failed to resolve the impasse ahead of switching...

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NEWS
GB energy regulation weekly briefing: Ofgem cap rise, NESO transmission reforms, RIIO‑2 RIGs and RESP consultations, DESNZ CfD AR7, hydrogen policy, key dates (27 February 2025)

In this issue: Electricity and gas market regulation and licensing Networks and network connections Renewable energy Conventional power, waste-to-energy, biomass, and CHP International energy Daily and weekly news alerts New and updated content Dates for your diary Trackers Electricity and gas market regulation and licensing Energy Bill Relief Scheme and Energy Bills Discount Scheme (Amendment) Regulations 2025 SI 2025/204: The instrument abolishes the need to work out and apply the core rebates under the Energy Bill Relief Scheme and the Energy Bills Discount Scheme where supply to non-domestic customers is from a supplier that has been ‘off-boarded’ from those programmes. It takes effect on 13 March 2025. See: LNB News 26/02/2025 32. Ofgem confirms Q2 2025 energy price cap rise Ofgem has announced a 6.4% rise in the energy price cap for Q2 2025, covering 1 April to 30 June 2025, setting the new cap at £1,849 a year for an average dual-fuel...

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NEWS
Energy law weekly for Great Britain, Northern Ireland and EU: Ofgem charging and networks, social housing MEES, Boiler Upgrade Scheme, NI Renewables Obligation, key consultations and dates - 2 April 2026

In this issue: Electricity and gas market regulation, licensing and taxation Networks and network connections Renewable energy Energy disputes Air emissions, efficiency, and climate change International energy New and updated content Dates for your diary Trackers Energy resources on Lexis+® Daily and weekly news alerts Electricity and gas market regulation, licensing and taxation Ofgem launches call for input on reform of locational charges under reformed national pricing Ofgem has opened a request for views on the shape of locational charges and regulatory siting levers within the reformed national pricing (RNP) programme. It examines potential approaches to structuring locational charges that would support delivery of RNP, spanning minor adjustments through to far-reaching reforms of the existing transmission network charging framework, and also outlines preliminary positions on legacy issues and transitional provisions for schemes that are already at advanced development stages. The window for submissions closes on 26 May 2026. See: LNB...

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PRACTICE NOTES
MLD5 changes to the UK Money Laundering Regulations 2017 for financial services—scope for cryptoassets, pre-paid limits, EDD for high-risk countries, FIU access and beneficial ownership registers

ARCHIVED: This Practice Note has been archived and is no longer updated. It can still assist practitioners seeking to align the provisions of MLD4 with the MLRs. For comprehensive practical guidance on the UK AML/CTF framework relevant to financial services, see the Anti-money laundering and counter-terrorist financing (AML/CTF)—overview; for the EU framework, see the Financial crime and sanctions (EU Law)—overview. Adoption of MLD5 and implementation in the UK The Fifth Money Laundering Directive (EU) 2018/843 (MLD5) was published in the Official Journal of the EU on 19 June 2018 and came into force on 9 July 2018. Member States were required to transpose it into national law by 10 January 2020. MLD5 updates the Fourth Money Laundering Directive (EU) 2015/849 (MLD4). In the UK, MLD4 was implemented by the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017, SI 2017/692 (the MLRs), which took effect on 26 June 2017. This Practice Note outlines MLD5 and how it was carried into UK law by...

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PRACTICE NOTES
EU energy cybersecurity and critical infrastructure: CER, NIS 2, electricity network code, forthcoming gas/hydrogen codes and Cyber Resilience Act—scope, obligations and timelines

Protection of critical infrastructure and cybersecurity—EU strategy In October 2016, the European Parliament’s Committee on Industry, Research and Energy (ITRE) issued a Cybersecurity Strategy for the Energy Sector. The paper reviewed prevailing policies and legislation, and considered routes for developing energy‑specific cyber security solutions and protective practices. It found that the continued rollout of smart energy systems, coupled with growing interconnection and interdependence across Member State borders, has produced rapid expansion of networked intelligence throughout energy grids and into consumers’ premises via smart devices. This enlarged attack surface, together with the fact that the energy system is inherently linked to every other critical infrastructure network, renders the sector especially susceptible to cyber attacks. That exposure has only grown since the 2016 strategy was released. On 16 December 2020, the European Commission and the High Representative of the Union for Foreign Affairs and Security Policy presented a new EU Cybersecurity Strategy. The 2020 plan encompasses the security of essential EU services (for example energy grids, railways and hospitals) and also...

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PRACTICE NOTES
EU electricity, gas and hydrogen network unbundling: transmission models, distribution rules and certification under the Electricity Directive 2019/944 and Gas and Hydrogen Directive 2024/1788

Background—the First to Fifth Energy Packages Under Article 194 of the Treaty on the Functioning of the European Union (TFEU), the Member States have, among other matters, granted the EU powers to ensure the operation of the energy market, protect security of energy supply, advance energy efficiency and saving and the development of novel and renewable energy forms, and support the interconnection of national energy networks. Article 194 further requires the European Parliament and the Council to adopt the measures needed to realise these goals. Accordingly, since the 1990s, a sequence of legislative packages has been enacted to create a shared EU-level rulebook to open national energy markets. These are set out below: First Energy Package — adopted between 1996 and 1998, initiating the first liberalisation of national energy markets Second Energy Package — adopted in 2003, enabling industrial and domestic customers to choose their energy suppliers from a broader field of competitors Third Energy Package — adopted in 2009, introducing: ...

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PRECEDENTS
Interconnection and Services Agreement for Electronic Communications Network Operators (England and Wales): specification, testing, forecasting, maintenance, call charges, credit security, IPR, confidentiality, dispute resolution and termination

This Agreement is hereby entered into on [ insert date ]. Parties [ insert name ], a company duly incorporated in [ England and Wales ] under number [ insert registered number ], whose registered office is at [ insert address ] (Party A); and [ insert name ], a company duly incorporated in [ England and Wales ] under number [ insert registered number ], whose registered office is at [ insert address ] (Party B). Each of Party A and Party B is a party, and together Party A and Party B are the parties. Background The parties are operators of electronic communications networks in accordance with section 32 of the Communications Act 2003. The parties intend to interconnect their networks to enable the sending and the receipt of electronic communications and to furnish each other with services. The parties have settled such interconnection and services on the terms and conditions of this Agreement... ...

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