A New Model for Interconnection ECC Report 75

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A New Model for InterconnectionECC Report 75

• John Horrocks
• DTI
• 44 1483 797807
• john_at_horrocks.co.uk

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Why 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

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Costs 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
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IP - 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?

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The 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)

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.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

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The 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

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Customers, 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.

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Service 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

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Transport Interconnection Payments

• Capacity and quality based, not service based
• Capacity payments towards the centre
• Peering in the centre
• Same as the Internet

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Inside 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
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Calls 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
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A 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
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Principles

• 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