Transcript www.iweek.org.za

Interconnection:
a practical guide
Gregory Massel
[email protected]
3 September 2009
Target Audience
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All providers of telephone network services
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Next Generation Network Operators
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(“ex-VANS”)
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Mobile Network Operators
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PSTN Operators
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SAME issues, DIFFERENT perspectives
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Understanding key to agreement
Overview
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Objectives
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Practical Solutions
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Reality check
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Questions
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Barriers to entry
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Considerations
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Practical
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Financial
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Technical
Objectives
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Bidirectional call traffic to/from the global PSTN
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Fair and competitive rates
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Origination
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Termination
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Reliable and dependable communications
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Restriction-free (within reason)
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Limit dependence on competitors or 3rd parties
Reality Check
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087 numbers allocated to ~111 i-ECS operators
(Source: ICASA, Aug 2009)
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~25 of those networks are reachable from Telkom's network
(Source: Telkom, Aug 2009)
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Even fewer are reachable from other key networks
(Vodacom, MTN, Cell C, Neotel)
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Direct interconnection between new operators is extremely
limited; however, many can & do reach each other via transit
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Interconnection regulations still pending
(> 2 Years since 1st draft. 3rd Draft dilutes protections.)
Barriers to Entry
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Cost
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Time Frames
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Volume obligations
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Negotiation & signing
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Security deposits
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Regulatory compliance
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Equipment
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Lodging agreements
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POILs
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Lodging tariffs
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Unwillingness to interconnect
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Anti-competitive attitude
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Difficulty securing meetings,
follow-up, contracts
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Routing, change control, testing
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Transit and 3rd parties
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International
No simple inbound transit
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Unnecessary delays
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Transit may be discretionary ?
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Disproportionate terms
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Conflict over transit costs
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Unfair constraints
Financial Considerations
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Rates
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Origination
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Termination
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Billing and settlement
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Cash flow
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Billing cycle
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Payment terms
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Net offset
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Volume Commitments
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Credit Risk
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Guarantees and security
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Currency exposure
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Arbitrage
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Systems for invoicing
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Transit
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Foreign currency
Reconciliation
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Accurate time
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Flexible reporting
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Source & Destination
Changes and re-rating
Technical Considerations
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Interconnect Type
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VoIP (SIP)
Routing
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Number portability
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Codecs used / supported
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Transit & Failover
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Fax (T.38 support)
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New number ranges
TDM (SS7)
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Equipment & Interoperability
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SPC
Scalability
POILS
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International
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Caller ID
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Fax
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Roaming
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New number prefixes
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ATM / Ethernet (VoIP)
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E1 (TDM)
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Delay / Latency
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Common POI (e.g. JINX)
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Testing
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Number pooling
Practical Considerations
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Direct interconnection between all licensees entirely impractical
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> 100 Licensees with number ranges
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Mesh requires minimum 4,950 interconnects! (Metcalfe's law)
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VoIP and common POI's (exchange points) alleviates
technical burden and POIL cost, but not admin and HR
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Neither financially nor technically feasible
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Negotiations and implementation would take eons
Transit not always ideal
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Some operators not always willing to route via a 3rd party
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More expensive above a volume threshold
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May give a competitor insight into traffic volume
Practical Solutions:
Interconnection Seekers
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Negotiate transit arrangements
Avoid foreign carriers until volumes high
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1st Interconnect partner should
transit outbound to everywhere
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take into account forex costs,
complications and risks
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Ensure major operators are willing to
route to your numbers via that party;
do not assume!
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Try secure local and international on
the same local agreement in ZAR
Consider newer entrants and ISPA
members; they are likely to be more
flexible, particularly with credit, volume
requirements and VoIP
Consider using a sub-allocation of
numbers pending routing of your own
ranges
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Number portability may be a reality
next year
Alternatively, sell outbound products
pending successful routing of numbers
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Be realistic about direct interconnects
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If you don't have sufficient volume,
start building it first
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Expect delays; Start negotiations early
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Try build inbound call revenue
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Two-way flow reduces exposure and
credit risk
Test extensively
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Purchase prepaid SIMs on all MNO
networks, land lines, VoIP services
Questions
Gregory Massel
[email protected]
3 September 2009