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Interconnection Issues in NGN

Interconnection Issues in NGN. V.K. Agarwal, Dy. Advisor Telecom Regulatory Authority of India (TRAI). Present Telecom Scenario. Present licensing framework is mapping different Telecom services with specific telecommunication licenses Low penetration of high speed Internet and Broadband

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Interconnection Issues in NGN

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  1. Interconnection Issues inNGN V.K. Agarwal, Dy. Advisor Telecom Regulatory Authority of India (TRAI) TRAI

  2. Present Telecom Scenario Present licensing framework is mapping different Telecom services with specific telecommunication licenses Low penetration of high speed Internet and Broadband Limited availability of Value-added services and content Restrictive regulatory framework for launch of new services TRAI 2

  3. Present Telecom Scenario (contd.) • Separate networks for PSTN, wireless and data • Huge growth of wireless deployment • Complex network design to support increasing bandwidth hungry applications • Telecom service penetration is high in urban areas. Digital divide needs to be addressed • Huge investments are required to set-up access infrastructure. TRAI

  4. Present Telecom Scenario (contd.) • Migration from PURE voice traffic in early eighties to pure IP traffic in near future • Growth of voice traffic is stagnating while data traffic shows exponential growth (nearly 100 % annually) • IP networks are • stable , robust and time tested • able to support triple play application • efficient to support emerging service requirements • Supports required QoS Network Traffic Growth Source: Cybermedia Center, Osaka University IP Networks are future requirement TRAI

  5. Drivers for NGN Increasingly acceptability of IP platform to provide triple play services Low cost of IP equipment, reduced power & space requirement and ease of maintenance Flexibility to provide different Value Added Services and content quickly Increasing convergence of devices pushing for convergence of Networks Competition demands integration of the network to reduce cost as parallel networks means high costs. Fast growth in telecom sector is reducing average revenue per user. Therefore need is to boost revenue earnings through launch of new value added services and applications TRAI 5

  6. 4-Key Business Drivers of NGN Reducing Cost Raising ARPU Enabling Convergence Consumer / Business Services TRAI

  7. 4-Convergence Device Convergence Network Convergence Service Convergence Support System Convergence TRAI

  8. 4-Key aspects of NGN Architecture Scalable Reliable • Carrier grade • High availability • Trust • Granular and modular • On the fly enhancements • Flexibility Openness Quality of Service (QoS) • Consistent performance • Preservation of key information parameters • Standard interfaces and protocols • Plug-n-play TRAI

  9. IP Core DB S-CSCF BGCF I-CSCF P-CSCF IP Networking, Transport and Aggregation – IP / MPLS 4-Segments of NGN Architecture Service s andApplications Multi-Access TRAI

  10. Networks in NGN Scenario TRAI 10

  11. Networks in NGN Scenario (contd.) TRAI 11

  12. Stages of NGN Implementation NGN is basically Network Convergence which consists of Core Convergence Switching convergence Access Convergence TRAI 12

  13. Present Telecom Networks GMSC MSC MSC BTS BSC BSC BTS End-to-End Mobile Network L2 TAX L1 TAX L2 TAX Local Exch. Local Exch. End-to-End PSTN Network ADSL DSLAM Int’l Internet Bandwidth Provider National ISP Local Exch. Broadband Network TRAI 13

  14. Convergence at Core Network TRAI 14

  15. End-to-End convergence TRAI 15

  16. Stages of NGN Implementation TRAI 16

  17. Supportive & Regulatory Framework • Regulatory framework should facilitate expansion of Infrastructure, especially in rural and remote areas. • Promoting Competition and technology neutrality • Focus on ‘Light touch’ regulation with special emphasis on regulatory forbearance • Time bound resolution of regulatory impediments for rollout and migration to NGN services • Govt. support for upgradation of end link will be desirable TRAI

  18. NGN Interconnection Issues • Migration from service based interconnection to service neutral interconnection • Reference interconnect offer (RIO) in NGN environment • Maintaining Fair cost based interconnection • Ensuring equitable & non-discriminatory interconnection • Point of interconnect between various operators • Basis of charging

  19. Point of Interconnection Direct Interconnection among service providers.

  20. Point of Interconnection Interconnect Exchange

  21. Comparison of two methodology of Interconnection

  22. Interconnection in Legacy Networks Charging methodologies • Calling Party Pays (CPP) – widely used • Receiving Party Pays (RPP), • Bill and Keep – mostly in Internet scenario Costing techniques • Distance Based • Element Based • Capacity based

  23. Current Interconnection Usage Charging(IUC) Scenario in India • IUC determined based on minutes of usage for various Unbundled Network Elements and the cost of these elements. • The IUCs for Origination, Transit and Termination are based on the principles of element based charging i.e. one operator charging the other for the resources consumed for carriage of its calls in terms of minutes of use (MOU). • The total Interconnection Usage Charges for carriage of a call in a multi operator environment are shared for Origination, Transit and Termination on the basis of work done in each segment for the carriage of the call.

  24. Charging methodologies in NGN • Calling Party Network Pays, • Bill and Keep, • Based on Quality of service, • Bulk billing.

  25. Service Level Agreements across multiple networks in NGN Scenario

  26. Issues and challenges – for IUC Billing and Accounting in NGN • Inter-operator settlement issues- content and quality based pricing, usage based or bulk billing. • In an NGN world, the network service provider will not necessarily be the application service provider. • The network provider will have only limited visibility into third party applications running over its network. The application provider may have extensive visibility into the application that it provides, but only limited visibility into the use of network resources. • Usage-based billing will be possible only to the extent that the usage can be rigorously and unambiguously measured. • How will providers and customers ensure that service commitments are met? Whose statistics will govern?

  27. Issues and challenges – for IUC Billing and Accounting in NGN cont. • Competitive providers may be reluctant to share statistics about their respective networks with one another, and peering agreements may typically restrict the ability of the providers to disclose information about one another‘s networks to third parties. Can sufficient information be disclosed to customers? • How will responsibility be allocated if a customer’s traffic fails to achieve its committed service level specification in case of multiple networks? Traffic data can legitimately be interpreted in more than one way. Will it be possible to administer payments and penalties rigorously and fairly? • How can providers prevent fraud? How can they distinguish between fraud and legitimate use?

  28. Thank You dacn@trai.gov.in TRAI

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