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ITU – Oman, Muscat, Sun 3 rd April 2005 Interconnection and Price Regulation Workshop Interconnect Principles. Mark Norris. Scope of Presentation. Introduction – what is Interconnect? Principles of Interconnection - Regulator’s Role Interconnection Conveyance services Physical connection
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ITU – Oman, Muscat, Sun 3rd April 2005Interconnection and Price Regulation WorkshopInterconnect Principles Mark Norris Doc Ref 00712/PN/774.1
Scope of Presentation • Introduction – what is Interconnect? • Principles of Interconnection - Regulator’s Role • Interconnection • Conveyance services • Physical connection • Other aspects e.g. Numbering • Access • Co-location • RIO • Summary & Discussion Doc Ref 00712/PN/774.1
Interconnection Doc Ref 00712/PN/774.1
Interconnection Principles • Interconnection shall be offered by a ‘dominant’ operator: • at any technically feasible point in the network • under non-discriminatory terms, conditions (including technical standards and specifications) and rates • on terms, conditions (including technical standards and specifications) and cost-oriented rates that are transparent, reasonable, having regard to economic feasibility • at a quality no less favourable than that provided for its own like services • sufficiently unbundled so that the supplier need not pay for network components or facilities that it does not require • On a timely basis • a ‘dominant’ operator will make publicly available either its interconnection agreements or a reference interconnection offer • There must be an independent dispute resolution body Doc Ref 00712/PN/774.1
Regulator’s Role • Interconnection is important to a dominant operator as a revenue source; and to other licensed operators and consumers as a vital enabler of competition. • Interconnection agreements are commercial agreements between operators, and can be subject to normal market considerations. • The Regulator’s primary roles with respect to Interconnection are therefore to ensure transparency and provide dispute-resolution: • Determine general and specific terms for interconnection • Intervene to determine agreements • Monitor changes to agreements • Resolve interconnection disputes • Make decisions & determinations available to public Doc Ref 00712/PN/774.1
Physical Connection OLO Public Network Incumbent Public Network Switch Switch A B C PointOfPresence PointOfPresence Point of Interconnection Logical Interconnection A At OLO Point of Presence B In Between (In-Span Interconnect)CAt Incumbent Point of Presence Physical Interconnection Doc Ref 00712/PN/774.1
Advantages Standard Installation Processes for Link Standard Maintenance Processes for Link Standard Deliver Time Scales for Link Standard Cost/Price Disadvantages “Collocation” for Other Operator but probably on a smaller scale Customer Sited Other Licenced Operator’s POP (Switch or Base Station) Incumbent Operator’s POP (Telephone Exchange) Standard Incumbent Private Circuit (Multiples of 2Mbit/s) Doc Ref 00712/PN/774.1
Collocation Site Boundary Other Licenced Operator’s POP (Switch Location) Incumbent Operator’s POP (Telephone Exchange) OLO Cable Chamber OLO infrastructure • Advantages • Own local POP not required • Ability to address Local Loop access at a later stage • Disadvantages • Cost, access, security • Installation and Maintenance • Requires OLO Infrastructure Doc Ref 00712/PN/774.1
In-span Interconnect Other Licenced Operator’s POP (Switch or Base Station) Incumbent Operator’s POP (Telephone Exchange) Footway Box • Advantages • Each side bears its own costs • No premises sharing hence no security etc issues • Disadvantages • Requires OLO infrastructure Doc Ref 00712/PN/774.1
Points of Interconnection (POI) • “Interconnection with a major supplier will be ensured at any technically feasible point in the network.” (WTO Requirement) • Conveyance charges relate to specific POIs • Location of POI is very important for operators who build their own network – they don’t want to pay the other party for carriage they could do themselves • Hence it is important for new operators to know what POIs will be available. Doc Ref 00712/PN/774.1
Gateway I/C S3 T2 T2 Trunk I/C S2 S2 T2 T1 T1 T1 Area Local I/C S1 S1 S1 A A A Conveyance Charge Structure Example: Conveyance charge = S2+T2+S2+T1+A S = Switch T = Transmission A = Access Doc Ref 00712/PN/774.1
National Fixed terminating*International terminatingOperator services, 112 Mobile terminating Mobile terminating Mobile terminating Conveyance Services New Operator (e.g. Mobile) Incumbent Fixed Network Mobile Network • National Fixed Termination may include: • Local terminationSingle Tandem terminationsDouble Tandem termination Each operator is responsiblefor traffic they receive viainterconnect link Doc Ref 00712/PN/774.1
OLO Requirements Interconnection • Operator installation practice (joint working manual) • Key dates • Switch details (location, type and data build level) • Transmission details (routes, technology, uni- or bi-directional, bulk rates) • Statements of information to be supplied by each operator (e.g. traffic forecasts) • Type of call conveyance and services required • Switch connections Doc Ref 00712/PN/774.1
Other Key Aspects (1) • Channel requirements • The capacity of the interconnect link is dimensioned in multiples of 2Mbit/sec • Forecasts of traffic flows to and from the OLO are vital to dimensioning the infrastructure to future requirements • Capacity is separated into traffic routes according to conveyance and service requirements (RIO defines service types) • Quality of Service • There is currently no agreed quality of service framework across the telecommunications industry for Interconnection • Service level agreements are designed to ensure that services by each party are to agreed quality of service levels. • They should support customer requirements and take into account technical and network performance parameters. Doc Ref 00712/PN/774.1
Other Key Aspects (2) • Billing • Different from retail billing in that it is routeing specific • Call conveyance charges are scheduled in the Interconnect Agreement for each service. • Each party is usually obliged to supply the other with billing information (weekly is usual) to support billing charges. • Interconnect bills must be verified, just like normal subscriber bills • Opening Day Requirements • New OLOs usually require only a skeleton network initially. • An initial minimum of 2 x 2Mbit systems on each route is required for signalling. • These two signalling links will support up to 40x2 Mbit/s traffic channels • Possible to have a separate signalling network option Doc Ref 00712/PN/774.1
Numbering • “Numbering” (as an address mechanism) is essential to interconnection • Numbers are a scarce resource and their allocation must be managed in a controlled and transparent basis • It is typically the responsibility of the Regulator to • Create a numbering plan • Manage the allocation and recovery of numbers • Plan and manage changes to the numbering plan • Key considerations: • Stability and Integrity • Structure (short codes, premium rates etc) • Conformity with International requirements • Cost, timescales and PR for transition Doc Ref 00712/PN/774.1
Collocation and Facility Sharing • The regulator should encourage sharing of facilities and/or property • Agreements are normally commercial and technical between the parties • The regulator would usually intervene in case of dispute • After public consultation a regulator may impose facility or property sharing Doc Ref 00712/PN/774.1
Scope of sharing • Masts • Allows second operator to rollout network faster • Requires rules for access, safety, loading etc • Widely mandated (e.g. Bahrain) • Ducts • Often not feasible or prohibitively expensive to install new ducts • Widely mandated (e.g. Singapore) • Affects rollout speed of both national and local network • Exchange space • Essential for access to unbundled local loop • Usually implies significant overhead (e.g. access controls to preserve security) Doc Ref 00712/PN/774.1
The RIO • The RIO is a key tool for the Regulator to ensure transparency in the interconnect process • Produced by dominant operators in compliance with guidelines set by Regulator • A binding set of guidelines for Interconnection Agreements • A basis for an Interconnection Agreement between operators • Can be Outline or prescriptive • Covers technical, operational and cost aspects of interconnect • Usually structured as an agreement with appended service definitions and a separate procedures manual (Joint Working Manual) Doc Ref 00712/PN/774.1
Interconnection • The quintessential point of the agreement is that the parties will “connect and keep connected their networks….” • We need to consider inter-alia: • Where the networks are interconnected • How they are interconnected • Who pays the cost of interconnection • Who pays for alterations Doc Ref 00712/PN/774.1
Points of Interconnection – where? • Interconnecting operator has the right to require interconnection at any reasonable point in the incumbent’s network • Reasonable notice of intent to interconnect • Exchange of information between the parties • PoIs agreed and listed Doc Ref 00712/PN/774.1
Points of Interconnection – how? • Physical interconnection provided by any convenient means • Co-location aspects to be agreed • Exchange of information between the parties • Engineering standards and operating guidelines shall be agreed Doc Ref 00712/PN/774.1
Scope of Services • From interconnecting operator • Ordinary directly dialled • Emergency • Information (DQ etc) • From incumbent • Call from incumbent to operator • International calls Doc Ref 00712/PN/774.1
Capacity/Forecasts • Parties to give each other capacity forecasts • Rolling programme • Payment if forecast not met? Doc Ref 00712/PN/774.1
Billing and Payment Each party: • collects charges made to the end-customer • keeps accounts • bills • pays the bill of the other party Doc Ref 00712/PN/774.1
Regulator ProducesInterconnect Guidelines RegulatorapprovesRIO Dominant OperatorProduces RIO Dominant Operatorand OLO produceInterconnectionAgreement Interconnections in operation Dominant Operatorand OLO implement Interconnection RIO Process • Issues • Dealing with delay in RIO, what are Regulator’s powers? • Minimum requirements for RFA? POIs and rates? • Reality • Interconnections are often operational before agreements and RIO are in place! RFA Issue Doc Ref 00712/PN/774.1
Summary Issues to be addressed: • Indicative POI and conveyance rates • Numbering Plan • Indicative availability of collocation • Indicative availability of other infrastructure sharing • RIO Timescales • Further Information - The Regulatory Reform Unit of the ITU has a self-learning module on Interconnection: http://www.itu.int/ITU-D/treg/ Doc Ref 00712/PN/774.1