INTERCONNECTION COMMERCIAL AND TECHNICAL ISSUES

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INTERCONNECTION-COMMERCIAL AND TECHNICAL ISSUES

• A PAPER PRESENTED AT WORKSHOP ON LEGAL ISSUES IN
  TELECOMMUNICATIONS FOR JUDGES AND LEGISATORS
• BY
• MARY N. UDUMA
• NICON HOTEL, ABUJA
  NOV.17-19 2003

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STRUCTURE

• INTRODUCTION
• PROVISION OF THE ACT
• COMMERCIAL ISSUES
• TECHNICAL ISSUES
• SUMMARY

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INTRODUCTION

• COMMUNICATION ACT 2003 DEFINED INTERCONNECTION
  AS
• PHYSICAL AND LOGICAL LINKING AND CONNECTION OF
  COMMUNICATIONS SYSTEMS USED OR OPERATED BY THE
  SAME OR DIFFERENT LICENSEES IN ORDER TO CONVEY
  MESSAGES TO AND FROM THE RESPECTIVE SYSTEMS FOR
  THE PROVISION OF SERVICE

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KEY WORDS

• PHYSICAL AND LOGICAL
• LINKING AND CONNECTIONS
• COMMUNICATIONS SYSTEMS
• SAME OR DIFFERENT
• CARRY MESSAGES
• TO AND FROM RESPECTIVE SYSTEMS
• PROVISION OF SERVICES

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ISSUES IN INTERCONNECTION

• LEGAL
• REGULATORY
• COMMERCIAL
• TECHNICAL

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PROVISION IN THE ACT

• COMMUNICATIONS ACT 2003 SS99(1) PROVIDED FOR THE
  COMMISSION TO MAKE REGULATIONS WHICH MAY SPECIFY
  BUT SHALL NOT BE LIMITED TO MODEL TERMS AND
  CONDITIONS FOR INTERCONNECTION.
• SS99(2) LISTED MATTERS WHICH INTERCONNECTION
  REGULATIONS SHALL ADDRESS TO INCLUDE

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INTERCONNECTION REGULATIONS

• QUALITY AND LEVEL OF SERVICE
• RATE METHODOLOGIES
• PROVISIONS OF FACILITIES
• SHARING OF TECHNICAL INFORMATION
• ETC

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INTERCONNECTION CHARGES AND COSTS

• REGULATION SS6(1) STATES
• THE CHARGES SET BY OPERATORS,WITH SPECIAL
  FOCUS PUT ON THE DOMINANT OPERATORS PROVIDING
  INTERCONNECTION TO THEIR TELECOMMUNICATIONS
  NETWORKS IN ACCORDANCE WITH THE GUIDELINES ON
  INTERCONNECTION OF TELECOMMUNICATION NETWORKS

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INTERCONNECTION GUIDELINES

• GUIDELINES ON INTERCONNECTION OF
  TELECOMMUNICATIONS NETWORKS PP 16 -17 SET OUT
  THAT
• INTERCONNCTION CHARGES AND COSTS SHALL BE SET ON
  OBJECTIVE CRITERIA, THE PRICIPLES OF TRANSPARENCY
  AND COST ORIENTATION

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GUIDELINES ON CHARGES AND COSTS

• BE SUFFICIENTLY UNBUNDLED TO ENSURE THAT AN
  OPERATOR REQUESTING INTERCONNECTION IS NOT
  REQUIRED TO PAY FOR NETWORK ELEMENTS OR
  FACILITIES NOT STRICTLY REQUIRED FOR THE SERVICE
  TO BE PROVIDED

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GUIDELINES ON CHARGES AND COSTS 2

• NOT INCLUDE HIDDEN CROSS-SUBSIDIES, PARTICULARLY
  OF AN ANTI-COMPITIVE NATURE
• REFLECT UNDERLYING COST CATEGORIES

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GUIDELINES ON CHARGES AND COSTS 3

• INCLUDE A FAIR SHARE, ACCORDING TO THE PRINCIPLE
  OF PROPORTIONALITY, JOINT AND COMMON COSTS AND
  THE COSTS INCURRED IN PROVIDING EQUAL ACCESS AND
  NUMBER PROTABILITY AND THE COSTS OF ENSURING
  ESSENTIAL REQUIREMENTS AND

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GUIDELINES ON CHARGES AND COST 4

• BE APPROVED (OR, IF NEEDED, SET) BY THE
  COMMISSION
• PP16(6) STATES THAT INTERCONNECTION CHARGES SHALL
  CORRESPOND TO THE SERVICES AND FACILITIES USED
  AND DOMINANT OPERATOR SHOULD DISTINGUISH AND
  SEPARATELY PRICE THE FOLLOWING ASPECTS OF
  INTERCONNECTION

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DISTINGUISH AND SEPARATE PRICING 1

• FIXED ONE-OFF CHARGES FOR THE ESTABLISHMENT AND
  IMPLEMENTATION OF PHYSICAL INTERCONNECTION
• PERIODIC RENTAL CHARGES FOR THE ON-GOING USE OF
  EQUIPMENT AND RESOURCES

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DISTINGUISH AND SEPARATE PRICING 2

• VARIABLE CHARGES FOR ANCILLARY AND SUPPLEMENTARY
  SERVIES
• USAGE-BASED CHARGES FOR THE CONVEYANCE OF TRAFFIC
  TO THE INTERCONNECTED NETWORK (ORIGINATING
  TRAFFIC) AND FROM THE INTERCONNECTED NETWORK
  (TERMINATING TRAFFIC)

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ACCOUNT SEPARATION

• PP17(1) STATES THAT
• IF INTERCONNECTION SERVICES ARE NOT PROVIDED
  THROUGH A STRUCTURALLY SEPARATED SUBSIDIARY, A
  DOMINANT OPERATOR SHALL KEEP SEPARATE ACCOUNTS AS
  IF THE TELECOMMUNICATIONS ACTIVITIES IN QUESTION
  WERE IN FACT CARRIED OUT BY LEGALLY INDEPENDENT
  COMPANIES, SO AS TO IDENTIFY ALL ELEMENTS OF COST
  AND REVENUE WITH THE BASIS OF THEIR CALCULATION
  AND THE DETAILED ATTRIBUTION METHODS USED

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ACCOUNT SEPARATION 2

• SEPARATE ACCOUNTS IRO INTERCONNECTION SERVICES
  AND ITS CORE TELCOM SERVICES
• INDEPENDENTLY AUDITED AND PUBLISHED
• SUPPLY FINANCIAL INFO TO NCC PROMPTLY ON REQUEST
  TO THE LEVEL DETAILED BY THE COMM AND NCC SHALL
  PUBLISH SUCH INFO BUT RESPECT COMMERCIAL
  CONFIDENTIALITY

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RATE AGREEMENTS IN NIGERIA

• SEE OTHER SLIDES

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ACCESS TO EACH OTHERS NETWORKS 1

• COMMUNICATION ACT 2003 SS101(1) . A NETWORK
  FACILITIES PROVIDER AND A NETWORK SERVICE
  PROVIDER SHALL PROVIDE ACCESS TO THEIR NETWORK
  FACILITIES OR NETWORK SERVICES TO ANY OTHER

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COMMUNICATION ACT 2003 PROVISION CONTD

• NETWORK FACILITIES PROVIDER
• NETWORK SERVICES PROVIDER
• APPLICATIONS SERVICE PROVIDER,OR
• CONTENT APPLICATIONS SERVICE PROVIDER

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ACCESS TO EACH OTHERS NETWORKS 2

• CONNECTION OF EQUIPMENT
• PHYSICAL INFRASTRUCTURE INCLUDING BUIDINGS, DUCTS
  AND MASTS, ETC.
• ACCESS TO SOFTWARE SYSTEMS, INCLUDING OPERATING
  SUPPORT SYSYTEMS
• ACCESS TO NUMBER TO TRANSLATION OF SYSTEMS
  OFFERING EQUIVALENT FUNCTIONALITY

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EACH OTHERS NETWORKS 3

• ACCESS TO MOBILE NETWORKS ROAMING
• ACCESS TO BILLING SYSTEM
• ACCESS TO UNBUNDLED NETWORK COMPONENTS, INCLUDING
  LOCAL LOOPS
• EQUAL EASE OF CUSTOMER ACCESS (E.G. CUSTOMER
  DIALING PARITY)

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POINT OF INTERCONNECTION (POI)

• PP18(1) OF THE GUIDELINES STATES THAT POI SHALL
  BE
• REQUESTED AFTER THE CONCLUSION AND COMING INTO
  FORCE OF INTERCONNECTION AGREEMENT AND
• ESTALBLISHED AND MAINTAINED AT ANY TECHNICALLY
  FEASIBLE POINT IN A DOMINANT OPERATORS NETWORK
  REQUESTED BY ANOTHER OPERATOR SEEKING
  INTERCONNCETION

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POINT OF INTERCONNECTION 2

• REQUESTING PARTY SHALL PROVIDE SUFFICIENT DETAILS
• COSTS MAY VARY DEPENDING ON POI
• DOMINANT OPERATORS NETWORK AT WHICH THE NETWORKS
  OF OTHERS CAN INTERCONNECT IN THE STD. REFERENCE
  INTERCONNECTION OFFER (RIO)

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POINT OF INTERCONNECTION 3

• EXTRA CHARGES MAY BE PAID BY REQUESTING PARTY FOR
  POI OTHER THAN THAT INDICATED BY THE DOMINANT
  OPERATOR IN THE RIO
• POI SHALL BE ESTABLISH NOT LATER THAN 45 DAYS
  FROM DATE OF REQUEST

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STANDARDS REQUIRED FOR INTERCONNECTION

• OPEN NETWORK
• TECHNICAL COMPATIBILTY
• TESTING
• REPORT OF TESTS
• PROCEDURE MUST BE MADE PUBLIC
• TRANSPERANCY
• NON-DISCRIMINATION

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QUALITY OF SERVICE

• QUALITY OF INTERCONNECTION
• AVAILABILITY OF SUFFICIENT INTERCONNECTION
  CAPCITY TO AVIOD CONGESTION
• LINKS MUST BE MAINTAINED BY EACH OF THE PARTIES

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SUMMARY

• NEGOTIATION B/W LICENCED OPERATORS AT
  NON-DISCRIMINATORY TERMS
• PERMITTED AT ANY TECHNICALLY FEASIBLE POINT
• CHARGES SHOULD BE COST-BASED
• COST INEFFICIENCIES NOT TO BE PASSED
• RIO TO BE PREPAID BY DOMINANT OPERATOR
• COLLOCATION AND SHARING OF INFRASTRUCTURE
• QUALITY OF INTERCONNCTION TO AVIOD CONGESTION

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SUMMARY

• NETWORK ELEMENTS UNBUNDLED
• REGULATORY GUIDELINES AND PROCEDURES IN PLACE
• INDEPNENDENT DISPUTE RESOLUTION

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THANK YOU