INTERCONNECT EXCHANGES: Making Interconnect Simple

The opening of the telecom market in India has definitely
provided many value-additions to the customers. The service quality is
improving, prices are coming down and many new services are being offered by
competitive operators. But there is a problem which, if not tackled with
long-term perspective at the very beginning, will increase the cost of network
and the complexity of call handling will automatically lead to

• Higher cost of service

• Inefficient handling of calls

• Sub-optimal utilization of network

• Serious increase of Capex and Opex, making operation
  unavailable

Considering the low affordability of the general Indian
population, the most important endeavor today is to keep the Capex & Opex of
the network as low as possible, so that the communication facility may be
provided to our countrymen at the most affordable prices in the world.

It should be remembered that our problem in spreading
communication facility in the country is unique in nature for the following
reasons:

• Our country is big.

• We have the second largest population in the world.

• We need to cover a very high number of cities, towns and
  villages spread all over the country.

• We have a variety of terrain in our country and the
  spreading of network all over is not an easy task.

• Existing infrastructure is insignificant.

• Existing network is backdated and not planned to support
  dramatic future growth.

• The National Communication Plan, which had been followed
  to deploy the existing network, was only to cater for 2 percent of our
  population and had never considered the telecommunications requirement of
  the common mass. Hence, existing models and plans used in our country to
  spread communications network are not tenable for a mass-market model.

• No country in the world except China has faced as many
  problems to increase the communications network.

• The affordability of China is much higher than India,
  hence our problems are more critical.

• The addressable population in our national communication
  model will easily be more than the
  
  complete population of USA, whereas our infrastructural support to spread
  the network can, in no way be compared with any developed country.

• It clearly shows that no existing solution used anywhere
  in the world could be used as our role model.

• We need to find out the key problem area and also to
  decide about the best possible solutions.

• We need to remember that we have very little option and
  financial support for experimentation.

• Hence we should indulge in critical analysis of the
  issues and the possible solutions and should take unbiased steps for the
  long-term advantages.

• We need to give up many traditional concepts and try for
  new, simple and elegant options, which will help us to provide a long term
  cost-effective sustainable network.

• We are pretty sure that we have enough talent to find out
  our own solution, which might be an eye-opener to other developing
  countries.

Interconnecting the Emerging Networks

One of the most serious problems, which is emerging with the
increase in the number of operators, is of Interconnection. According to the
order of TRAI, it is mandatory for, cellular, basic and NLD operators in any
particular service area, to be interconnected with each other. With the increase
in the number of operators in different services, the number of interconnect
links between operators will increase in multiples and will be very soon
unmanageable. This could be clearly understood from the following example. The
minimum level of interconnect suggested by TRAI is at each Long Distance
Charging Area or (LDCA) (only basic services operators are to be interconnected
even at Short Distance Charging Area (SDCA) level). The total number of LDCAs in
India is 322.

Features of Interconnect Exchange

The Interconnect Exchange will be connected to each operator
of LDCA preferably through a duplicated interconnect link. As all the operators
would be connected to only one interconnect operator, uniform terms of
interconnect will be applicable. Interconnect Exchange will be versatile enough
to accommodate all types of interconnect links recommended by TEC as our
national interconnect standard. Interconnect Exchange operator may work as a
mediator and the clearing house for the bills between service providers.

With an identical LDCA scenario with sixteen operators as
mentioned above, and the introduction of an Interconnect Exchange, the number of
Interconnect links will be reduced to as little as sixteen from a staggering
number of 240 links needed by the presently recommended interconnect regime.

Advantages

Network simplicity: Interconnect Exchange will immediately
solve the following complexity of the network.

Optimization of number of Interconnect links: Interconnect
Exchange will drastically reduce the number of interconnects. The present
requirement of interconnect link in any LDCA is N x(N-1), where N is the number
of operators to be interconnected. After introduction of Interconnect Exchange,
it will drop to N, i.e. equal to number of operators.

Simplicity in digit analysis/route selection: The
Interconnect Exchange will take over the load of digit analysis for all
inter-operator calls and inter-circle calls from the exchanges connected to it.

Simplicity of operation: The Exchanges of service operators
will be responsible for analysing and routing calls within their network only.
This will dramatically simplify their operational and coordination problems.

Simplification of carrier selection function: Carrier
selection responsibility for LDCA may be handled by the Interconnect Exchange,
making all types of carrier selection possible even in the present network
scenario, making National Long Distance Operation more user-friendly.

Simple, cost-effective and reliable PoI: As any operator
needs to maintain only one Point of Inter-connects (PoI) in an LDCA, it will be
cost-effective for each operator to go for the most reliable and upgradable
media like OFC ring for PoI at each LDCA, which will provide much more
dependable service to the end users. The Interconnect Exchange operator will be
in a position to collate the requirements of all operators and plan out
augmentation of PoI capacities in a time-bound and cost-effective manner.

Efficient handling of new and traditional interconnects: A
part of the national network will be IP-based. It will be very expensive for
every incoming IP operator to have different types of protocol conversion
hardware and software installed at their end, to handle interconnections with
different traditional operators. If the same is handled in the Interconnect
Exchange, it will be much more cost-effective, efficient and uniform.

Better utilization of interconnect links: As the peak traffic
period of different services is not identical, an Interconnect Exchange can help
in a more efficient usage of the PoI.

Interconnect Exchanges Responsibility

As the Interconnect Exchanges will handle all inter operator
calls, it is in a unique position to work for

• Inter operator bill settlement (clearing house function)

• Reconciliation and MIS generation.

• Tariff-based/Time-based route selection.

• Route related announcements.

• Carrier selection.

• Promotion handling in coordination with operators, etc.

Best equipped to handle these functions are companies
controlled by banks/financial institutions, etc and not the traditional or
upcoming service operators.

Centralised data base control for Nationwide Uniformity of Service

All Interconnect Exchanges of all LDCAs should be connected
through a nationwide WAN network, to a regional/centralized data base, so that
the operational data of all Interconnect Exchanges will be uniform. The idea is
to support uniform service quality throughout the country.

Source of Revenue for Interconnect Exchange

Being a common facility, each operator will pay a small part
of the outgoing inter operator call revenue to the Interconnect operator

For clearing house operation, it will get a separate charge
from each operator.

Reconciliation service and MIS may also be a charged service.

Announcement handling on behalf of different operators and
promotion handling will also be a source of revenue.

Carrier selection feature charge if controlled by
Interconnect Exchange may be another source of revenue.

Cost of Interconnection with Interconnect Exchange

The cost of bringing an interconnect link to an Interconnect
Exchange should be the responsibility of Interconnect seeking operator. Terminal
equipments at both ends and media will be commissioned and maintained by
Interconnect seekers at their cost. Interconnect Exchange will provide space,
power, etc for entry and installation of terminal equipments.

The specification and type of terminal equipment should be
guided by the TEC. The minimum capacity of interconnect for a particular service
operator may be mutually decided on local basis.

The rental to be levied by the Interconnect Exchange operator
to an interconnect seeker for space, power, air conditioned environment, and for
hardware and software to support the interconnect links may be determined and
proclaimed by TRAI from time to time, through cost base analysis.

Equality in Terms of Interconnect

A standard interconnect agreement format may be created in
consultation with TRAI and is to be followed by all operators. It will bring
uniformity in terms of interconnect and all the operators will receive the same
treatment.

To avoid the incumbency factor and monopolistic situation,
Interconnect Exchange operators should

not be involved in any communication service for the end users.

A Mukhopadhyay, vice president, Fascel