Convergencia Research, Consultoría especializada en Latinoamérica y Caribe
Friday, January 14, 2011

CONATEL investigates a new regulation for NGN networks

Venezuelan regulator assesses regulatory costs and charges for NGN services and migration strategies from the PSTN network, among others.

Currently, the Telecommunications Organic Law (2000) governs the interconnection of networks based on services rather than technology. Meaning, that in Venezuela the principle of technological neutrality currently governs. However, we can see within the rules that it also addresses the issue of interconnection, the presence of regulation supported by classical technology (Time Division Multiplexing-TDM), based on circuit switching.

Given the need to adapt the regulatory framework confronting the arrival of next generation networks NGN, the National Telecommunications Commission (CONATEL) is discussing the possibility of changes that affect the vision of the regulator in terms of interconnection points.

According to the CONATEL, one aspect to consider is the number of interconnection points to be established by an operator using an NGN network compared to the interconnection of existing PSTN networks. This is because a Softswitch has greater capacity to handle traffic compared to a TDM switch. Consequently, a greater number of subscribers can be handled by the Softswitch because it reduces the required number of interconnection points .

On the other hand, once operators use NGN, it will raise a possible change in the forms of co-location within current interconnection regulations. For the CONATEL, with NGN, the signaling protocol "Common Channel Signaling System No. 7 (SCC7)" established by the Telecommunications Act to ensure interoperability of existing networks with the discussed changes will not be used by those operators whose networks are fully deployed through IP technology, meaning that all network elements, both transport and switching based on IP technology and in the sector where the stage is an IP interconnection. All this would  make operators use different SCC7 protocols such as SIP (Session Initiation Protocol) or H.323.

Another aspect to consider pointed out by the CONATEL is the quality of service. NGN unlike conventional networks covers the entire network, since there is a convergence between services and the transport network. In this case there must be a priority for telephone traffic over other data services. That is why there must be a standard for compressing audio data for voice.

Costs. CONATEL proposes that under an NGN scheme we should keep an orientation of interconnection charges, which seeks to ensure that the operator offering interconnection could recover their costs and in turn will ensure a reasonable profit margin, because if Interconnection charges are below costs, the operation may be unworkable and would slow down investment plans.

Moreover, in an application of charges for uses by the CONATEL, in a NGN network interconnection, the same shall be determined on the basis of long-term incremental costs broken down by elements considering an efficient company, serving theories and general economic principles, moreover, the methodology followed should be independent from the technology used, respecting the principle of technological neutrality.

With regard to the above, in order to determine possible charges of uses that reflect the cost of an NGN network, for the CONATEL the ideal situation would be to develop a cost model which identifies with precision the elements of a NGN network, as a result,  creating an efficient network, with plans, the traffic of voice, data and video, and subscribers that would support such a network, and on the other hand, the value of investments and costs attributable to the above, including common costs. Another aspect that is being studied is the possibility to incorporate measured use charges as a unit of computing capacity, control and taxation, replacing the current rules set at the rate of time (seconds).

 

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