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telecommunication, the term interoperability has the following meanings:
Source: from Federal Standard 1037C and from the Department of Defense Dictionary of Military and Associated Terms in support of MIL-STD-188.
With respect to software, the term interoperability is also used to describe the capability of different programs to read and write the same file formats and utilise the same protocols.
Interoperability can have important economic consequences, such as network externalities. If competitors' products are not interoperable (due to causes such as patents, trade secrets or coordination failures), the result may well be monopoly or market failure. For this reason, it may be prudent for governments to take steps to encouage interoperability in various situations.
In the United Kingdom there is an eGovernment-based interoperability initative called e-gif.