ITS 15th Biennial Conference

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• ITS 15th Biennial Conference
• Berlin, Germany September, 4-7 2004
• Internationalisation and Regional Issues
• Parallel Session Long Distance and
  Internationally Interconnected Networks

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Outline

• Interconnection of IP-Networks
• - State of Play
• - Interconnection vs. Peering
• Further regulatory Aspects of IP-Networks
• - Access to bottlenecks
• - Bundling
• - Obligations on Network Security
• Regulatory discussions on Voice over IP (VoIP)
  Services

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The different Areas of Regulation along the Value
Chain of IP-Services

• 1. Local Access (Telco, Cable, or Mobile Network
  Operator)
• - Access to bottleneck facilities
• - Provision of wholesale broadband services
• - Bundling of services by incumbents
• - Network Security
• IP-Connectivity (Network or Internet Service
  Provider)
• - Interconnection and Peering
• --------------------------------------------------
  --------------------------------
• (Voice over) IP Service (f. e. Free World Dial
  Up)
• - Access to Numbers -gt Emergency Services
• - Consumer Protection
• - Public Surveillance for State Security

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Interconnection

• At the time being interconnection between
  Internet Service Providers (ISPs) and Internet
  Backbone Providers (IBPs) is determined by the
  market and not regulated.
• The interconnection costs for Routing Equipment
  Bandwith and Transit are constantly falling.
• Concerns for dominance in the backbone market
  (WorldCom-Sprint Merger of 2000) are no longer
  existent.
• In most cases ISPs seeking interconnection to an
  incumbents PSTN will be able to negotiate on the
  basis of the operators published Reference
  Interconnect Offer.

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Example of an Interconnection Policy

• Qwest's International IP Network Peering Policy
  of July, 1 2004 Qwest selects International
  Interconnection Candidates based upon, among
  other things, costs, port availability and
  bandwidth capacity at particular locations, and
  the overall strategic benefit Qwest will
  experience with the connection.
• Problems may occur when pure VoIP-Service
  Providers are asking for interconnection.

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Interconnection vs. Peering

• "Peering" is the settlement-free exchange of IP
  traffic between service providers operating IP
  Networks.
• Trend that peering agreements are even closed
  between IP- and PSTN-operators
• - they allow for a more flexible interconnection
  of networks regardless of the defined points of
  access (no relays no delays) and
• - a better calculation of the future costs for
  IP-traffic.

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Further regulatory aspects of IP-Networks

• Local Loop will remain a bottleneck-facility
  Alternative infrastructure like broadband-cable
  (esp. in the US) or mobile networks (in Europe
  via UMTS) and WLAN is (still) not comparable.
• Incumbents may create a market entry barrier
  while offering broadband-access (via DSL),
  Internet Connectivity and VoIP-Services via their
  own subsidiaries as bundled retail services.
• Favored solution in the EU Bitstream-Access,
  see Recommendation of the Commission of 11/2/2003
• Access to co-location facilities, specific
  IP-Gateways

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Obligation to ensure Network Security

• Some critics consider IP-Networks rather a
  concept than a infrastructure because they can be
  configured by their users or third parties.
  (RegTP)
• Clear definitions necessary
• - What components are necessary to consider an
  IP-infrastructure as an IP-Network?
• - What is from a legal point of view necessary
  to run a network?

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Regulatory discussion on VoIP-Services

• Generic name for the transport of voice traffic
  using Internet Protocol (IP) technology. The VoIP
  traffic can be carried on a private managed
  network or the public Internet or a combination
  of both. (Ofcom)
• US VoIP Regulatory Freedom Act of July,22 2004
  defines VoIP as a lightly regulated information
  service.
• EU Under the new Regulatory Framework
  VoIP-Services offered to the public can either be
  regarded as electronic communications services
  (ECS), see Art. 2 (c) of the Framework Directive
  or public available telephony services (PATS),
  see Art. 2 (c) of the Universal Service
  Directive. Depending on the distinction a certain
  number of regulatory obligations are to fulfill
  by the VoIP service provider.

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• Thank you for your attention!
• Sven Tschoepe, LL.M.
• Institute for Legal Informatics
• Königsworther Platz 1
• 30167 Hannover / Germany
• Tel [phone]
• E-Mail sven.tschoepe_at_iri.uni-hannover.de