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  Electronic Bulletin / Number 1 - July, 2004

Versión Español

What is the Interconnection of telecommunication networks?

 

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.

 


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