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Disclaimer
Disclaimer
The opinions expressed in this presentation
are those of SBR and do not necessarily
reflect the views of TRAI.
Content
Day 1
Session 3: The migration strategies towards NGN
Session 4: Interconnection in NGN
Session 5: Quality of Service in NGN environment
Session 6: Licensing related issues in NGN
Day 2
Future developments
Bilateral interconnection
multilateral interconnection,
TDM interconnection
Distributed points of
interconnection
Relevant issues
Service aware or
service unaware
interconnection
Relevant issues
Charging
g g regimes
g
for interconnection
IInterconnection
i between
b
TDM networks
k iis generally
ll
implemented peer-to-peer between two networks.
In the internet, public Interconnection Exchanges
(IXP = Internet Exchange Points) have evolved
evolved.
An internet exchange is a separate entity, that provides
the necessary infrastructure for exchange of traffic
between ISPs.
Relevant issues
Number of
interconnection
points
The degree of
regulation
Development
p
towards NGN interconnection
Networks transforming to
fewer POI
No standardised quality
interconnection possible
as in TDM
L
Layered
d network
t
k separating
ti
transport, control and
applications
Content
Policy implications
New architectures
(IMS,
(IMS softswitch,
ft it h
SBC)
New interfaces
(Ethernet)
New signalling
(SIGTRAN H.284
(SIGTRAN,
H 284
btw. Media gateway
and MGWcontroller SIP
controller,
SIP,
H.323, Telephony
over IP: SIPI/Q1912 5
I/Q1912.5,
H.323/SIP)
Interconnection architectures
The NGN
architecture has
been defined by
ITU-T (in Rec.
Y 2012)
Y.2012)
The possible
connectivityy to an
NGN: UNI, NNI,
ANI, SNI
11
Interconnection architectures
User Network
Interface ((UNI))
Network
N
t
kN
Network
t
k
Interface (NNI)
12
Interconnection architectures
Application
Network Interface
(ANI)
Service Network
Interface (SNI)
13
14
Inte
rcon
nec
tion
TDM
Trunk
Gateway
PSTN
TE
Interconnection TDM
Softswitch/
IMS
Trunk
Gateway
LS
IP/MP
Core
AG
AG
Access Gateway
Access
Softswitch/
IMS
TG
SBC
IP/M
AG
Softswitch/
IMS
TG
IP based
Interconnection
SBC
IP/MP
PLS
AG
AG
LS
AG
16
Instances of Interconnection
Analysing the business models we find many instances where
interconnection is possible:
1. application layer application layer
2 service
2.
i llayer service
i llayer
3. transport layer transport layer
4. service layer application layer
5. transport layer service layer
17
Issues I
Do you agree on the described architectures, physical interfaces and signalling?
On which layers and planes is interconnection technically viable and commercially
interesting?
18
19
Issues II
Do you see any role of NIXI in IP interconnection for NGN?
21
Content
22
Regulatory regime
In India, the service providers are obliged to interconnect with each other as
set out in the license conditions/ TRAIs regulation.
As set out by TRAI all service providers including UASL licensees, NLD
licensees and ILD licensees have to provide interconnection upon a request
from another service provider.
The directive and the rules do not include internet service providers.
23
Tier 2
Tier 3
Transit
Tier 1
Peering
Transit
Tier 2
Transit
Peering
Transit
Tier 3
Transit
Transit
Peering
24
25
26
Regulated interconnection
27
Mandating IP Interconnection?
Alternative 1: Mandate IP Interconnection is to oblige the access provider
to provide IP-based interconnection when the seeker of interconnection
requires
q
this to be done on an IP basis.
Ensure that the migration to IP would not be done before one or
several service providers are ready for IP interconnection and
therefore decided that they want to require it.
Alternative 2: Mandate IP interconnection only from a certain date in the
future
future.
Pro: Parallel regimes (TDM and IP) could be avoided and it would
give all stakeholders time to prepare.
Con: The IP-based interconnection would be forced between
operators who would both prefer the interconnection to be TDM
based
based.
28
Mandating IP Interconnection?
If IP interconnection becomes mandatory, the question arises if the
enforcement of interconnection agreements should rely on:
Bilateral agreements and dispute resolution (ex-post)
Mandatory reference offer (ex-ante)
29
Issues III
Do you think that TRAIs licensing regime is sufficient for NGN
interconnection?
Should IP interconnection be mandatory?
If interconnection based on IP is mandatory
mandatory, should it be mandatory for all
stakeholders or only when the seeker of interconnection requires this?
If IP-based interconnection is made mandatory,
y, should TRAI issue a
reference offer or leave the agreements to be negotiated between the
operators?
30
Content
31
Issues IV
What does a reduction of PoIs mean for India, in particular as regards the
division of India in 22 service areas?
What is the optimal number of PoIs in India and how should these be
structured?
From the respondents perspective is there any regulatory intervention
required regarding the number of PoIs in an NGN architecture?
33
Content
34
35
36
37
Issues V
Do you regard the IMS specifications to be appropriate for the routing in NGN?
Are there any other issues relevant with regard to routing and NGN?
38
Content
39
40
41
Operators
p
((SMP/incumbents):
) regulated
g
charging
g g regime
g
typically
yp
y
based on CPP/EBC
Time based charging
Cost oriented pricing set by regulator
Symmetric
Different rates for mobile and fixed networks
42
IP Peering
43
CPP
Cost based per minute rates
Typically different symmetric rates for fixed and
mobile networks (India as an exception)
Removal of interconnection rates for all exchange of
traffic or for exchange of traffic at the local level
(COBAK)
Sometimes with limits for asymmetric traffic
Charging based on actually exchanged amount of
capacity or booked amount of capacity
Charging unit: bits or links
E.g.
E g typically used for bitstream access,
access
interconnection joining links and managed capacity
Charging based on volumes
Comparable
C
bl tto th
the currentt regime
i
b
butt with
ith b
bytes
t as
charging unit
44
CPP/EBC
B&K
Pros
Well established
Investment incentives
QoS
Less regulation
g
required
q
Investment incentives
No on-net/off-net pricing
Close to marginal costs
Fixed-mobileconvergence?
No cross-subsidisation
from fixed to mobile
Cons
Competition problems
Lock-in effects (networks)
Off-net-/on-net pricing
Suboptimal network utilisation
based on per minute charging
Higher end user charges
Network utilisation ((hot
potatoe routing)
Waterbed effects
QoS
Legal uncertainty
How to deal with asymmetric
traffic
45
Other alternatives
Capacity based
charging
h
i
Volume based
charging
Peering
Pros
Mirrors real cost
drivers in IP/NGN
networks
Investment
incentives
Guaranteed QoS
Cons
Negative for new entrants if
capactiy must be booked in
advance
Competition problems / monopoly
problems remain
Call externalities
Investment
incentives
Guaranteed QoS
Cases
In France,
France B&K has been used for mobile networks Enabled
the third entrant to gain more market shares.
In US, MPP (Mobile Party Pays) has been used Lower
penetration rates but higher usage per customer and higher
ARPUs.
Capacity based charging for interconnection used e.g. in Spain
and for bitstream access.
08.01.2013
47
48
49
Likely outcomes
The choice is mainly between charging regimes with tariffs (most typically
CPP/EBC) and those without (typically B&K and Peering).
In countries with a CPP/EBC regime, the regulated CPP tariffs set the cap
for tariffs for non regulated interconnection.
The difference between charging regimes have less impact than they
used to have due to sinking costs.
Depending on the asymmetry of traffic and the importance of the
amount of traffic as a cost driver, negotiated interconnection will more
and more be B&K or Peering.
A change in charging units for NGN to volume based charges is rational,
but the low net payments might rather lead to a voluntary implementation
instead
of B&K instead.
50
Issues VI
Do you regard the current regulatory regime for retail tariffs to be
appropriate?
Which wholesale charging regime, e.g. CPNP or bill and keep, do you
regard to be optimal to facilitate the migration to NGN?
51
1
1.
A change in charging unit to bits/s would better reflect the costs than minutes.
minutes
2.
Due to generally low net payments (low rates combined with reasonably
symmetric traffic) and the effort needed to change charging unit (regulatory
procedure, negotiations), removing the compensation for traffic (B&K) is a
viable alternative.
3
3.
Migration scenarios
08.01.2013
52
53
Issues VII
Do you agree that if the CPNP regime remains in place, it will have to be
adopted with regard to the charging units, i.e. by implementing capacity
based charging?
How should the CPNP regime be adapted with regard to different quality
of service for different interconnection traffic?
If different service classes or QoS is charged differently, which service
classes
l
or QoS
Q S parameters
t
are relevant
l
t for
f such
h a regime?
i ?
54
Content charges
As NGN interconnection evolves, it will be possible to interconnect for the
exchange of content.
As content services will be packet based, the capacity based charges will
probably be the most suitable charging regime.
Before the charges for interconnection with regard to content services will
be regulated, a market failure and/or competition problems need to be
id tifi d
identified.
If and when IP interconnection for content services are implemented and
regulated,
regulated the charging will have to be aligned towards different service
classes.
55
Issues VIII
How should the charging regime be adapted with regard to different
quality of service for different interconnection traffic?
If different service classes or QoS are charged differently, which service
classes or QoS parameters are relevant for such a regime?
Do you recall for more regulatory interventions when it comes to
interconnection of data and other NGN related non-voice services? If yes,
which
hich kind of reg
regulatory
lator meas
measures
res are preferred and why?
h ?
56
57
Cost assessments
On a total for India, higher interconnection usage charges (especially for
termination rates) will:
Create financial streams from some service areas (mostly high
income areas) to other service areas (mostly low income areas).
Create financial streams from those operators with much outgoing
traffic to those with less.
Increase the revenues from international incoming traffic without
increasing the cost for outgoing traffic.
The wholesale charges tend to set the floor for retail charges.
58
Issues IX
Which cost methodology is preferable and which level of the tariffs would
optimally promote the migration to NGN?
59
Summary
Interconnection needs to be modified in order to cope with the migration
within the networks
The interconnection architectures will change and interconnection will be
able at different layers in the network
Regulatory obligations for NGN interconnection is a relevant issue
The number of PoIs will be reduced
The migration to NGN interconnection has outcomes on the regulatory
regime for IUC
60
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