Transcript Interconnection Issues Related to Next Generation Networks

INTERCONNECTION ISSUES
RELATED TO
NEXT GENERATION NETWORKS
Michel Bruyère, CEO
Goulet Telecom International
Interconnection Issues Related to NGNs
CANTO 2006 - 18-21 June 2006 – Punta Cana
Overview
• Introduction – regulation of interconnection
• Emergence and dominance of data
• Arrival of Next Generation Networks (NGNs)
• New interconnection issues
– Billing
– Settlements
– Systems
• The future
Interconnection Issues Related to NGNs
CANTO 2006 - 18-21 June 2006 – Punta Cana
INTRODUCTION – REGULATION OF
INTERCONNECTION
Interconnection Issues Related to NGNs
CANTO 2006 - 18-21 June 2006 – Punta Cana
Introduction – Regulation of Interconnection
• Interconnection is a necessary and mandatory
requirement in a liberalized
telecommunications environment
• Regulation aims to create a leveled playing
field
• Interconnection agreement negotiation:
complex task with high stakes
– Even more difficult with current migration to IP
networks
Interconnection Issues Related to NGNs
CANTO 2006 - 18-21 June 2006 – Punta Cana
Introduction – Regulation of Interconnection
• The need for regulation of interconnection
– Competition is generally recognized as key to
growth and innovation in telecommunications
– Two basic principles for an efficient and
competitive telecommunications sector
• The possibility for users to call anywhere, i.e. across
networks
• Protection against abuse of market power
– Obligation for all operators to provide fair and
equitable interconnection, for all services
• Efficient use of rare and expensive resources
• Allows all users to communicate with one another
Interconnection Issues Related to NGNs
CANTO 2006 - 18-21 June 2006 – Punta Cana
EMERGENCE AND DOMINANCE OF
DATA
Interconnection Issues Related to NGNs
CANTO 2006 - 18-21 June 2006 – Punta Cana
Emergence and Dominance of Data
• Demand spirals upward
– Consumer IP services increasing
• Web, email, messaging, voice, multimedia
– Business IP data services expanding
• Replacement of leased lines with IP VPN
• Growth of broadband access and applications
• Emails
– Business IP voice service, a displacement of
traditional PSTN services
• VoIP, FoIP, voice messaging
Interconnection Issues Related to NGNs
CANTO 2006 - 18-21 June 2006 – Punta Cana
Emergence and Dominance of Data
Most popular services
Web surfing
Sending & receiving email
Interconnection Issues Related to NGNs
CANTO 2006 - 18-21 June 2006 – Punta Cana
Emergence and Dominance of Data
Most popular services
Internet telephony
Internet chat
Interconnection Issues Related to NGNs
CANTO 2006 - 18-21 June 2006 – Punta Cana
Emergence and Dominance of Data
Most popular services
Network news (a.k.a. RSS feeds)
Web sites
Interconnection Issues Related to NGNs
CANTO 2006 - 18-21 June 2006 – Punta Cana
Emergence and Dominance of Data
Most popular services
Content hotels for streaming data

Distribution and retrieval of information
– Stock quotes
– Breaking news reports
– Sport scores
– Feeding data-warehoused info to personnel and customers
Interconnection Issues Related to NGNs
CANTO 2006 - 18-21 June 2006 – Punta Cana
Emergence and Dominance of Data
Most popular services
Virtual Private Internet (VPIs)
• VPIs are extended intranets
• Virtual Private Wire service
• Virtual Private LAN service
• IP LAN-like service
Interconnection Issues Related to NGNs
CANTO 2006 - 18-21 June 2006 – Punta Cana
Emergence and Dominance of Data
Future services
Multimedia telephony


Multimedia conferencing = interactive, live sharing of
audio, video and desktop applications
Rich media data streams - carry voice, video, and
application data for end users, to make conference calls,
view live or streamed video, share application data with
others, listen to voice mail or view video email, conduct
instant messaging with colleagues, etc
Interconnection Issues Related to NGNs
CANTO 2006 - 18-21 June 2006 – Punta Cana
Emergence and Dominance of Data
Future services
Unified messaging


– Email, voicemail, fax, SMS
All within a unified mailbox and alert system
Single delivery, single repository, single access, single
notification
Interconnection Issues Related to NGNs
CANTO 2006 - 18-21 June 2006 – Punta Cana
ARRIVAL OF NEXT GENERATION
NETWORKS (NGNs)
Interconnection Issues Related to NGNs
CANTO 2006 - 18-21 June 2006 – Punta Cana
Arrival of Next Generation Networks (NGNs)
• Internet realities
–
–
–
–
–
–
–
–
Internet traffic roughly doubling every year
Voice traffic growing at 5% per annum
VoIP growing 40-80% per annum
However, Internet does not dominate global communications
in market size, number of users, traffic
Internet a small fraction of global network infrastructure:
telephone, satellite, radio, TV, private networks
Internet revenues growing at 17% per annum, phone at 6%:
will take 15 years to surpass phone revenues
ISP revenues < 5% of total communication revenues
Internet users worldwide 800 million+
Interconnection Issues Related to NGNs
CANTO 2006 - 18-21 June 2006 – Punta Cana
Arrival of Next Generation Networks (NGNs)
• Key drivers transforming telecom business to IP
networks and services:
– Telecommunications business is becoming informationbased
– Data communications exceeding voice worldwide
– Circuit-switching optimal for voice communications
– Packet-switching optimal for most data communications
– Internet becoming the ‘all’ communications network
– IP packet-switching protocol is basis for Internet
– Major operators are merging their communication networks
into one ubiquitous IP packet-switched network carrying all
forms of communications
Interconnection Issues Related to NGNs
CANTO 2006 - 18-21 June 2006 – Punta Cana
Arrival of Next Generation Networks (NGNs)
Innovation
NGN
Flexible, easy to
innovate with
viable financial
model, security
and QoS
Internet
Flexible and
easy to
innovate
without viable
financial model,
security, and
QoS
PSTN
source: Telarix
Rigid and hard to
innovate but with
viable financial
model, security
and QoS
Accountability
Interconnection Issues Related to NGNs
CANTO 2006 - 18-21 June 2006 – Punta Cana
Arrival of Next Generation Networks (NGNs)
• Next Generation Network – ITU definition
– A packet-based network able to provide telecommunication
services and able to make use of multiple broadband, QoSenabled transport technologies and in which service-related
functions are independent from underlying transport-related
technologies
– Enables unfettered access for users to networks and to
competing service providers and/or services of their choice
– Supports generalized mobility which will allow consistent
and ubiquitous provision of services to users
Interconnection Issues Related to NGNs
CANTO 2006 - 18-21 June 2006 – Punta Cana
Arrival of Next Generation Networks (NGNs)
• Operators are investing in NGNs to compete with
Internet
• NGNs are being deployed
• Convergence is happening
• NGN interconnection settlement model cannot follow
traditional PSTN or Internet models
Interconnection Issues Related to NGNs
CANTO 2006 - 18-21 June 2006 – Punta Cana
NEW INTERCONNECTION ISSUES
Interconnection Issues Related to NGNs
CANTO 2006 - 18-21 June 2006 – Punta Cana
New Interconnection Issues
• General issues
– The interconnection between legacy circuit-switched
networks and new IP packet switching networks - every
conversion between the Time Division Multiplexing (TDM)
and IP domains introduces delay and distortion, which result
in poorer voice quality
– Additional levels of interconnection required between the
basic backbone IP packet network and many more new
competitive players
– The push to open interconnection standards at all points and
levels of technical interconnection
– The increasing regulatory liberalization for interconnection
Interconnection Issues Related to NGNs
CANTO 2006 - 18-21 June 2006 – Punta Cana
New Interconnection Issues
• Interconnection model in PSTN:
– Calling Party’s Network Pays (CPNP)
Wholesale $
Retail $
Originatin
g Network
Terminating
Network
source: Telarix
Interconnection Issues Related to NGNs
CANTO 2006 - 18-21 June 2006 – Punta Cana
New Interconnection Issues
• Interconnection model on Internet
source: Telarix
Wholesale $
• Carry traffic on behalf of
another party
• Carry traffic to a third
party
Backbon
e
Provider
ISP
ISP
Retail $
– Transit
Backbone
Provider
Wholesale $
• Carry traffic to each other
• No obligation to carry
traffic to third party
Retail $
– Peering
Interconnection Issues Related to NGNs
CANTO 2006 - 18-21 June 2006 – Punta Cana
New Interconnection Issues
• Inter-operator settlement issues
– Content-based pricing
• How to price actual content, not usage or transport?
– Tele-management
• Continue to bill on the basis of duration or volume?
– Inter-operator billing systems
• How to handle the increasing number of partners and
complexity of business transactions?
– Reconciliation and reporting
• How to deal with increased traffic from IP data?
Interconnection Issues Related to NGNs
CANTO 2006 - 18-21 June 2006 – Punta Cana
New Interconnection Issues
• Inter-operator settlement issues
– Call analysis
• How to analyze these new IP events coming from a
variety of data network services?
– Automated reconciliation
• What units to use?
• What file formats to use?
– Inter-operator settlement agreements
• How to handle arrangements between more than two
providers involved in a given transaction?
– Clearing houses (iNOW, OSP)
Interconnection Issues Related to NGNs
CANTO 2006 - 18-21 June 2006 – Punta Cana
New Interconnection Issues
• International settlements
– Traditional ITU method
• Long delays
• Based on traffic declaration
– Full invoicing
• Shorter delays in getting paid
• Road blocks:
– Management of traditional transit
– Local taxes could be applicable
– Costs of change
» Staff
» Systems
Interconnection Issues Related to NGNs
CANTO 2006 - 18-21 June 2006 – Punta Cana
New Interconnection Issues
• International settlements
– Market evolution:
• New services and technologies (i.e. NGNs) will probably
be built assuming “invoicing model” will apply
• New market entrants do not want to invest in billing
systems that cope with a complex model (ITU) and its
financial implications
• Increased market volatility and risk argues for faster
payment
Interconnection Issues Related to NGNs
CANTO 2006 - 18-21 June 2006 – Punta Cana
THE FUTURE
Interconnection Issues Related to NGNs
CANTO 2006 - 18-21 June 2006 – Punta Cana
The Future
• A separation of service provision and connectivity
• NGNs that support new services and third party
services over network boundaries
• Easy provision of new and third party services - the
deployment of NGNs provides an excellent
opportunity to agree on improved interfaces to
enable service providers to interconnect and
cooperate in the delivery of services
Interconnection Issues Related to NGNs
CANTO 2006 - 18-21 June 2006 – Punta Cana
The Future
• A variety of charging schemes: transport- or usagebased, content-based, hybrid, etc
• The adoption of hybrid and different settlement
methods: peering (sender keeps all) between
providers of the same service, invoicing to third party
service providers, etc
• Class-based rather than service-based measures to
improve quality
• New regulatory policies that recognize the freedoms
inherent in NGN architectures
Interconnection Issues Related to NGNs
CANTO 2006 - 18-21 June 2006 – Punta Cana
The Future
• Interconnection between operators that allows the
provision not only of today’s and tomorrow's voice,
data and multimedia services, but also of an
unlimited range of new applications and services
limited only by human imagination
Interconnection Issues Related to NGNs
CANTO 2006 - 18-21 June 2006 – Punta Cana
Thank You!
• About Goulet Telecom International:
– Canadian company assisting telecommunications
organizations worldwide to face the specific challenges of
the global competitive environment by providing a wide
array of business solutions, consulting expertise and
training services
– Areas of expertise:
•
•
•
•
•
•
Strategy & Management
Marketing & Sales
Engineering & Operations
Finance
Human Resources
Policies & Regulations
– www.goulet-telecom.com
Interconnection Issues Related to NGNs
CANTO 2006 - 18-21 June 2006 – Punta Cana
Contact Information
Michel Bruyère
Chief Executive Officer
Goulet Telecom International Inc.
666 Sherbrooke West, Suite 1000
Montreal, Quebec H3A 1E7
Canada
Tel.: +1 514 281 1211
Fax: +1 514 281 2005
[email protected]
Interconnection Issues Related to NGNs
CANTO 2006 - 18-21 June 2006 – Punta Cana