April 9, 2009 TANE Spring Educational Symposium Bretton Woods, New - - PowerPoint PPT Presentation

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Jan 19, 2024 142 likes •252 views

April 9, 2009 TANE Spring Educational Symposium Bretton Woods, New Hampshire How Did We Get Here? RBOC withhold of transit traffic payments Rate-shopping Lack of visibility beyond Tandem switching layer Complexity of

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April 9, 2009 TANE Spring Educational Symposium Bretton Woods, New Hampshire

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How Did We Get Here?

 RBOC withhold of transit traffic payments  Rate-shopping  Lack of visibility beyond Tandem switching layer  Complexity of interconnection agreements  Bypass via Protocol – SIP vs TDM

 “Connectionless” vs Deterministic

 Regulatory “Multiple Personality Disorder”

 Local voice is regulated (in the loop)  Local voice via Voip is unregulated (using the loop)  ILECs are regulated, Voip providers are not

TANE Spring Educational Symposium - Network Intelligence - www.NetG2.com - info@netg2.com

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Types of Phantom Traffic

RBOC Tandem Transit

 Transit Traffic Originated via RBOC Tandem

 No payment by RBOC (for non-RBOC traffic)  No ability to identify source of traffic

 No ANI

 Lack of real-time enforcement

 “Rear-View” visibility and measurement

 25%-50% Revenue losses in terminating access charges

TANE Spring Educational Symposium - Network Intelligence - www.NetG2.com - info@netg2.com

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Types of Phantom Traffic

CLEC Interconnection

 Favorable CLEC interconnection agreements  CLECs sell terminating rate deck to IECs and Wireless

providers

 Rate Arbitrage by CLEC  Local calls sold as Terminating Access

 Potential for ANI manipulation

 CLEC retains margins  ILEC improperly compensated

TANE Spring Educational Symposium - Network Intelligence - www.NetG2.com - info@netg2.com

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Types of Phantom Traffic

IP Origination and Termination

 Your Customers use your unregulated DSL services to

affect technical “bypass” of your regulated services

 Voip providers enjoy regulatory protection from

payment of terminating access via IP

 Skype  Vonage

 Other Voip providers purchase CLEC termination to

conceal terminating access as local calls

TANE Spring Educational Symposium - Network Intelligence - www.NetG2.com - info@netg2.com

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Issues

Barriers to Progress

 Lack of Network Element Control

 Lack of Visibility to real-time traffic  Expensive accounting of past losses doesn’t translate into future

revenues

 RBOCs are not your friends

 Regulatory “Firewall”

 Regulated vs. Unregulated services  You’re not playing by the same rules  Asymmetric economic model

 Complexity and Quantity of Interconnection Agreements

 Creates legal and financial barriers to resolution

 Multiple tariffed and contract rates for traffic delivery

 Encourages rate-shopping  Rewards negative customer behavior

TANE Spring Educational Symposium - Network Intelligence - www.NetG2.com - info@netg2.com

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Opportunities

and

Desired Outcomes

 Stop the Bleeding  Increase Revenues from terminating access  Offer wholesaleVoip services with IP-Access services

 If you’re going to enable your competition, make it profitable

 Simplify peering and traffic-sharing agreements

 Streamline interconnect agreements

 Aggregate Assocation member traffic

 Ingress – United policies and tariffs  Egress – Multiple Carrier LCR  Peering of Association member traffic

 One agreement, not 22 agreements

TANE Spring Educational Symposium - Network Intelligence - www.NetG2.com - info@netg2.com

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Recommendations

 Control Tandem Access to your Network

 Be your own gatekeeper  TDM and IP  Make it difficult and expensive to “game” access services

 Develop portfolio of Wholesale SIP services

 Local DID numbers  Out-of-area SIP-based services  Communication Integration – local, national, global

 SIP-enable your local network with outsourced IP Tandem Access

 Use a media gateway as the “Voice Demarcation” point in your netowrk

 Offer incentives to terminate traffic in your territory via IP

 Reward revenue-producing behavior

 Play out of both rulebooks

 Out of territory SIP services create revenue on unregulated side  In-territory services protect current service revenues

TANE Spring Educational Symposium - Network Intelligence - www.NetG2.com - info@netg2.com

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Conclusions

 Treat the Problem, not the Symptom

 Phantom traffic is a symptom of a failing system

 Take control of your network at ALL layers  Create new revenue opportunities  Prevent uncompensated access to your network  Aggregate traffic to reduce direct cost of termination

f out-of-footprint traffic

 Simplify and facilitate member traffic peering

TANE Spring Educational Symposium - Network Intelligence - www.NetG2.com - info@netg2.com

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Hosted and Managed IPTandem

 Leverage Capital dollars – Opex as opposed to Capex  Pay for only what you need

 Partition larger platform

 Outsource management of hosted platform

 Keep services in deregulated side

 Re-deploy HR assets

 Reduce time managing multiple peering agreements  Reduce legal and regulatory expense

 Be a net seller, not a net purchasor of services

 Develop deregulated services at Tandem layer that leverage

regulated infrastructure – just like your competitors

 Outsource association traffic aggregation, peering, and settlements

TANE Spring Educational Symposium - Network Intelligence - www.NetG2.com - info@netg2.com