Title: A New Model for Interconnection ECC Report 75
1A New Model for InterconnectionECC Report 75
- John Horrocks
- DTI
- 44 1483 797807
- john_at_horrocks.co.uk
2Why do we need a new model?
- We need to accommodate new services
- We need to simplify interconnection
- We need to reduce charging costs
- The cost basis has changed and the existing model
was designed for expensive core networks - The retail market is changing with subscriptions
and bundled calls and is now out of line with
interconnection - The days of call charges are disappearing
- Running a service-aware backbone for multiple
services will be organisationally complex
3Costs old and new
Distance and time dependent call charges
Old
Carrier selection Freephone
Regulation is based on this!
Backbone
Access
Access
Line rental
New
Access
Access
Backbone
4IP - the opportunity to change
- Internet approach separates transport and
service provision - Layering
- Interconnection has developed around carrier
selection but this is no longer needed - Are we stuck forever?
5The goal
- High quality interconnected service platform - a
new utility - Full separation of transport and services
- Transport consists of access and backbone
- Interconnection charging based on capacity and
quality - not service - Uncontrolled service creation from the normal
customer interface (friendly to 3rd parties and
innovation)
6.but
- There are still some very expensive calls, eg
premium rate, non-liberalised countries and
mobile - We need a smooth migration for any changes
- So we cannot avoid a system of parallel running
7The Concept
- A growing area with the new interconnection model
- Operators can join at any time
- Gateways to the old model
- Allows parallel operation of old and new models
and overlays - The old model will continue but diminish
indefinitely
8Customers, access and services
- Customers pay separately for access and services
- Access payments may be subscription or usage
based - where usage based would pay for access
for incoming calls - Access payments may be quality related
- Customers pay service providers for services,
service payments may be subscription or usage
based, but connectivity services are cheap.
9Service payments
- Service provision works on sender keeps all
within the new model - maximise connectivity
(like email) - Service providers will need gateways to the old
model (like VoInternet with PSTN breakout) - Separation from transport means easy to reach
distant service providers - Calls can be carried as far as possible on new
model
10Transport Interconnection Payments
- Capacity and quality based, not service based
- Capacity payments towards the centre
- Peering in the centre
- Same as the Internet
11Inside the new model
Retail subscription or usage
SP
Sender keeps all
SP
Access subscription or usage
Access subscription or usage
Access
Capacity charge
Capacity charge
Peering
Peering
12Calls to the old model
Interconnection Call charge
Retail subscription or usage
Retail subscription or usage
SP
Access subscription or usage
Gateway
Old model
Access
Capacity charge
Capacity charge
Peering
Peering
13A new model
Option-4 No call charges
Call charges
Retail for calls to call charge area
SP
SP
SP
Gateway
Internet style platform
Originating
Transit
Terminating
No call charges
Access line
Capacity charge
14Principles
- Retail service charges from service provider
remain a commercial matter - Retail access from network operator may be
subscription or volume (mobile) - Create IP-based interconnect club with capacity
payments, no call charges and open
interconnection - Membership and coverage of the club may grow
- Defined bearer services only to external gateways
- Gateways to call charge zone outside
- Originating service provider signals/pays gateway
but not IP network operators (SP is independent
of access operator carrier selection) - Saves need for session border controllers within
club