IP-Based NGNs and Interconnection: The Debate in Europe

Communications & Strategies, No. 72, p. 17, 4th Quarter 2008

16 Pages Posted: 8 Apr 2009  

J. Scott Marcus

Bruegel; European University Institute - Florence School of Regulation

Date Written: December 31, 2008

Abstract

Historically, interconnection in the world of the Internet has been approached significantly differently from interconnection in the fixed Public Switched Telephone Network (PSTN) and the mobile Public Land Mobile Network (PLMN). As fixed and mobile networks evolve to Next Generation Networks (NGNs) based on the Internet Protocol (IP), it becomes increasingly necessary to merge these perspectives in order to achieve a unified and integrated approach to network interconnection. There is a rich history of economic analysis of IP-based and of conventional switched networks that began to converge early in this decade. In 2008, this issue is coming to a boil, as regulators seek to provide regulatory certainty for the build-out of NGNs, even in the face of substantial uncertainties, and even though practical experience with NGNs is still in a very preliminary state. What can we learn from the historical evolution of the theory of interconnection for Internet, NGN, PSTN and PLMN? What issues are "in play" today? What is the appropriate destination in the long term? What nearer term measures are appropriate?

Keywords: interconnection, NGN, Internet Protocol (IP), bill and keep, Calling Party's Network Pays (CPNP), peering, transit

JEL Classification: L52, L96

Suggested Citation

Marcus, J. Scott, IP-Based NGNs and Interconnection: The Debate in Europe (December 31, 2008). Communications & Strategies, No. 72, p. 17, 4th Quarter 2008. Available at SSRN: https://ssrn.com/abstract=1373706

J. Scott Marcus (Contact Author)

Bruegel ( email )

Rue de la Charité 33
B-1210 Brussels Belgium
Belgium

European University Institute - Florence School of Regulation ( email )

Florence
Italy

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