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2. The Impact of an all-IP Interconnect Regime
Presented by John Barnhill, GENBAND.
Both the FCC and the CRTC are reviewing and updating their current regulation framework for how voice carriers interconnect with each other and deliver multi-media services. The existing regulations, developed in support of the CLEC model of the 90’s is clearly out of date. Today competition is being driven by mobile carriers and OTT voice providers. With new entrants creating services in an all-IP communications realm, they are demanding the ability to terminate traffic with IP interconnects. This will have fundamental impact on capital investment and inter-LATA billing for carriers across North America.
The regulations created to support CLEC competition of the late 90’s are outdated. The competitive threat that carriers face today is from the growing number of OTT providers and mobile operators. With a larger and larger proportion of traffic originating on their networks, the mobile and OTT providers are looking for new ways to interconnect with the incumbent voice providers and demanding more regulatory support from their governments. Whether they have invested in new, all-IP networks or are relying on internet access to deliver voice to their customers, they do not want to invest in dated TDM interconnect technologies to terminate voice calls. In fact, to deliver advanced multi-media services will require traffic to remain IP from end to end. But the penetration of IP interconnect is still small and new competitors are looking for regulatory support. On both sides of the border, the government bodies are looking at changing how voice is regulated as a service and how IP-interconnect shall be offered.
This session will review the current proposals and explore the impact of the regulations on incumbents, new entrants and the business models for how they interconnect.