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IP-based NGNs and Interconnection: The Debate in Europe

  • J. Scott MARCUS

    (WIK-Consult GmbH, Bad Honnef, Germany)

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    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?

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    File URL: http://repec.idate.fr/RePEc/idt/journl/CS7201/CS72_MARCUS.pdf
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    Article provided by IDATE, Com&Strat dept. in its journal Communications & Strategies.

    Volume (Year): 1 (2008)
    Issue (Month): 72 (4th quarter)
    Pages: 17-32

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    Handle: RePEc:idt:journl:cs7201
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    1. Jean-Jacques Laffont, 2001. "Internet Interconnection and the Off-Net-Cost Pricing Principle," Theory workshop papers 357966000000000085, UCLA Department of Economics.
    2. Cremer, Jacques & Rey, Patrick & Tirole, Jean, 2000. "Connectivity in the Commercial Internet," Journal of Industrial Economics, Wiley Blackwell, vol. 48(4), pages 433-72, December.
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    4. Mark Armstrong & Julian Wright, 2009. "Mobile Call Termination," Economic Journal, Royal Economic Society, vol. 119(538), pages F270-F307, 06.
    5. Christos Genakos & Tommaso Valletti, 2007. "Testing the "waterbed" effect in mobile telephony," LSE Research Online Documents on Economics 19680, London School of Economics and Political Science, LSE Library.
    6. Doh-Shin Jeon & Jean-Jacques Laffont & Jean Tirole, 2004. "On the Receiver-Pays Principle," RAND Journal of Economics, The RAND Corporation, vol. 35(1), pages 85-110, Spring.
    7. Tommaso Valletti & George Houpis, 2005. "Mobile Termination: What is the “Right” Charge?," Journal of Regulatory Economics, Springer, vol. 28(3), pages 235-258, November.
    8. Armstrong, Mark, 1998. "Network Interconnection in Telecommunications," Economic Journal, Royal Economic Society, vol. 108(448), pages 545-64, May.
    9. Armstrong, M., 1996. "Network interconnection," Discussion Paper Series In Economics And Econometrics 9625, Economics Division, School of Social Sciences, University of Southampton.
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