Interconnection
of telecommunication networks is the linking of the physical and
logical resources of two or more telecommunication operators for the
exchange of information via different transmission media so that the
users of one operator may communicate with those of another.
Interconnection is
significant when the
telecommunications market is open to competition, as entering and
existing operators will have the objective of accessing as many users
as possible. Hence, the ultimate aim of interconnection is the
satisfaction of users who, in accessing additional communication
facilities, will enhance their quality of life. Interconnection is
consequently an instrument to facilitate telecommunication competition
by augmenting what is available to users on the market.
In the past, existing telecommunication services
were based on independent networks, so that there has been one network
for each service available on the market: the telephone network,
television network, radio broadcasting network, cellular network,
value added network, the Internet, etc.
Telecommunication technology has advanced to such
a point it is now possible for such services to converge, for which
network integration is required, that is, the physical and logical
merging of all telecommunication networks into a single network.
Interconnection is essential for such purposes.
Although there are now integrated technological
solutions on the market that may be used to access voice, video, data,
content, and the Internet (network convergence) using a single piece
of equipment, maximum use must be made of operators’ technologies and
infrastructure. This means that, owing to the high costs involved,
operators are unable to abandon current infrastructure to migrate to
new technologies.
Consequently, as a first step toward network
convergence, operators today must integrate existing networks in order
to offer users new and better services, with the aim of progressively
constructing a network of networks.
Until operators have technologies that provide
convergent network services (all services via a single technology),
service convergence must be ensured by means of interconnection so
that multiple services are available to users over the same network.
In consequence, interconnection as a key factor
in competition must make it possible to merge existing networks, and
ensure that new operators can enter the market and that established
operators can gain access to new market niches. Operators must
therefore enter into interconnection agreements that establish the
commercial, technical, and legal conditions to govern the relations
between and among them.
Initially, operators freely discuss the
interconnection agreement, that is, the general, commercial, and
technical conditions that such agreements are to contain. Once they
have reached agreement, it must be set out in an interconnection
contract containing the following items:
General conditions. Clauses regarding the
purpose and scope of the agreement; a general schedule for execution
of the agreement, including its principal phases; provisions regarding
how information is to be provided, including procedures for exchanging
the information required for proper operation and control of
telecommunication networks or services and for ensuring their adequate
quality; provisions pertaining to privacy of communications, including
measures to be taken by each party to ensure confidentiality in
handling user information; life of contract; mechanisms for resolving
disputes arising during contract execution; and grounds for contract
suspension or early termination.
Commercial
conditions. Charges to be paid for
interconnection (access charges), as well as mechanisms for computing
and assessing interconnection billing charges; billing procedures to
be followed in exchanging accounts; and approval, computation,
payment, and collection of accounts.
Technical conditions. Interconnection points,
technical interfaces, required links, services provided, colocation,
interconnection diagrams, operation tests, service quality standards,
auxiliary services, and essential installations.
To arrive at such commercial agreements and find
equitable solutions that serve the interests of parties and users, the
sector’s lead international organizations, such as the WTO, the ITU,
and CITEL, have developed a series of provisions and recommendations
to be taken into account in addressing interconnection issues.
Thus, the WTO, in the General Agreement on
Tariffs and Trade, signed in Marrakech, in 1994, established the
following principles in the network interconnection area, which are
binding on the signatories to that agreement:
-
Independence of the regulatory body;
-
Guarantee of permanent interconnection,
especially by the major providers;
-
Non-discriminatory technical provisions and
tariffs;
-
Interconnection quality similar to that
provided for services;
-
Provision of interconnection on a timely basis;
-
Provision by major providers (dominant
operators) to interested parties of a Reference Interconnection
Offer;
-
Provision in the rules and regulations for
appeal in the interconnection process.
For its part, the ITU, in this connection, in a
2001 Recommendation recommended that:
-
Interconnection is available on a permanent
basis;
-
Network access is available on uniform terms;
-
Independent and timely mechanisms are
established for resolving disputes;
-
Services and facilities are provided on a
non-discriminatory basis;
-
A breakdown of network usage tariffs is
provided;
-
The privacy is ensured of information indicated
to be confidential;
-
An attempt is made to establish open network
architecture.
Lastly, in 1999, the Inter-American
Telecommunication Commission (CITEL) recommended to the countries of
the region that they adopt the following principles pertaining to
interconnection:
-
That network unbundling is ensured;
-
That a supply is available for the resale of
services;
-
That dispute resolution mechanisms are in
place;
-
That it is determined whether competition will
be infrastructure-based (that is, each operator builds his own
infrastructure) or interconnection-based.
In consequence, interconnection
has become the principal tool for the technological development of
telecommunication networks by permitting appropriate use of existing
networks and providing user access to new services. For such
technology to be used, however, it is essential for operators to seek
agreements that serve their interests and, in keeping with existing
regulations, establish the conditions that are to govern
interconnection processes.
Francisco Castro Córdoba
Legal Adviser
Asociación Colombiana de Ingenieros (ACIEM)
Professor of the course
Interconnection
Additional Information: CITEL/OAS
will provide full tuition costs for enrollment in the course for
thirty fellows for the distance
learning course Network Interconnection (second level)
that will be held August 30 to October 8, 2004. The objective of
the course is
to study in depth the regulatory,
managerial, and technical aspects with the greatest impact on
interconnection in order to provide new decision-making tools.
This course is offered
by
the Regional Training Center of the Inter-American
Telecommunication Commission (CITEL) and ITU
Excellence Network Node for the Americas
Colombian Association of Engineers (ACIEM).
For more information please visit the
CITEL fellowships web
page. |
|