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<p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri","sans-serif";
color:#1F497D'>Dear Mwende and Walu,<o:p></o:p></span></p>
<p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri","sans-serif";
color:#1F497D'><o:p> </o:p></span></p>
<p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri","sans-serif";
color:#1F497D'>This is an interesting discourse and would like to throw another
twist to it. How necessary is international bandwidth to us? Suppose we had our
content issues in order and have our own facebook, yahoo, msn, skype etc would
it be necessary to buy international bandwidth? In other words can we create
our own local internet? Should we put policies in place that encourage “inward
bound” internet traffic that will utilize local infrastructure and
bandwidth as opposed to “outword bound” that is dependent on
international links?<o:p></o:p></span></p>
<p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri","sans-serif";
color:#1F497D'><o:p> </o:p></span></p>
<p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri","sans-serif";
color:#1F497D'>Kindest Regards<o:p></o:p></span></p>
<p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri","sans-serif";
color:#1F497D'>Harry <o:p></o:p></span></p>
<p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri","sans-serif";
color:#1F497D'><o:p> </o:p></span></p>
<div style='border:none;border-top:solid #B5C4DF 1.0pt;padding:3.0pt 0in 0in 0in'>
<p class=MsoNormal><b><span style='font-size:10.0pt;font-family:"Tahoma","sans-serif"'>From:</span></b><span
style='font-size:10.0pt;font-family:"Tahoma","sans-serif"'>
kictanet-bounces+harry=africanedevelopment.org@lists.kictanet.or.ke
[mailto:kictanet-bounces+harry=africanedevelopment.org@lists.kictanet.or.ke] <b>On
Behalf Of </b>mwende njiraini<br>
<b>Sent:</b> Wednesday, August 13, 2008 5:04 PM<br>
<b>To:</b> harry@africanedevelopment.org<br>
<b>Cc:</b> KICTAnet ICT Policy Discussions<br>
<b>Subject:</b> Re: [kictanet] Day 3 of 10:-IGF Discussions, Internet
Interconnection Charges<o:p></o:p></span></p>
</div>
<p class=MsoNormal><o:p> </o:p></p>
<div style='margin-bottom:10.0pt'>
<p class=MsoNormal style='text-align:justify'><span style='font-family:"Calibri","sans-serif"'>In
traditional telephony call termination revenues are shared between operators
and are based on negotiated interconnection rates, in a regulated environment,
rather than the size and number of subscribers on the network. (I stand
to be corrected) Developing countries for a long time have benefited from
revenues generated from this international settlement scheme. However,
these revenues are rapidly being eroded by VoIP, which is encouraged by
'loosely regulated' flat rate pricing of internet bandwidth. The issue
internet interconnection is based on the fact that international ISPs have no
incentive to enter shared-cost peering with ISPs developing countries thus
forcing them to incur the full cost of transmitting international
traffic. What incentives need to be put in place to encourage shared-cost
peering? Content development? </span><o:p></o:p></p>
</div>
<div style='margin-bottom:10.0pt'>
<p class=MsoNormal style='text-align:justify'> <o:p></o:p></p>
</div>
<p class=MsoNormal style='margin-bottom:10.0pt;text-align:justify'><span
style='font-family:"Calibri","sans-serif"'>There is raging debate on
"network neutrality"; with network operators seeking to price network
access on the basis of utilization in a bid to manage network congestion.
In the US, for example the recent Comcast case has resulted in the regulator,
FCC, ruling that Comcast 'discriminatory' network management practices were
illegal. To overcome the challenge of network congestion several
proposals have been made including the introduction of bandwidth metered
services. Vint Cerf, Google's chief internet evangelist, has proposed
that ISPs should "introduce transmission caps allowing users to purchase
access to the Internet at a given minimum data rate, which would be guaranteed
even during times of congestion." Net neutrality is definitely an
issue we may need to consider with reference to the current developments in
national and international fibre optic projects. </span><o:p></o:p></p>
<p class=MsoNormal style='margin-bottom:10.0pt;text-align:justify'><span
style='font-family:"Calibri","sans-serif"'>References:</span><o:p></o:p></p>
<p class=MsoNormal style='margin-bottom:10.0pt;text-align:justify'><a
href="http://news.cnet.com/8301-1023_3-10007079-93.html"><span
style='font-family:"Calibri","sans-serif"'>http://news.cnet.com/8301-1023_3-10007079-93.html</span></a><o:p></o:p></p>
<p class=MsoNormal style='margin-bottom:10.0pt;text-align:justify'><span
style='font-family:"Calibri","sans-serif"'>Regards</span><o:p></o:p></p>
<p class=MsoNormal style='margin-bottom:10.0pt;text-align:justify'><span
style='font-family:"Calibri","sans-serif"'>Mwende</span><o:p></o:p></p>
<p class=MsoNormal style='margin-bottom:10.0pt;text-align:justify'><span
style='font-family:"Calibri","sans-serif"'>Disclaimer: Comments are author's
own.</span><o:p></o:p></p>
<p class=MsoNormal style='margin-bottom:12.0pt'><o:p> </o:p></p>
<div>
<p class=MsoNormal><span class=gmailquote>On 8/13/08, <b>John Walubengo</b>
<<a href="mailto:jwalu@yahoo.com">jwalu@yahoo.com</a>> wrote:</span> <o:p></o:p></p>
<p class=MsoNormal>Plse feel free to belatedly contribute on Day 1 or 2 themes,
jst remember to pick the correct subject line. Meanwhile today we
should discuss one of IG issues that touch squarely on the retail cost of
Internet Service in developing countries- the Internet Interconnection Charges
(IIC, in short)<br>
<br>
This issue is fairly complex and explosive but we could try and understand if
we used a simplified model for Mobile Phone Interconnection Charges and
Relationships. Consider mobile phone company, X with 8million customers
and mobile phone company, Y with 2 million customers. Each company
is supposed to compensate (pay) the other for terminating calls originating
from the other. In such a relationship, the bigger company X, can chose to
dictate how much the smaller company, Y pays it to terminate the 'Y' calls to
its bigger 'X' network/customers.<br>
<br>
This is losely similar to what is called Transit relationship on the
Internet. The big internet networks (Tier 1 and 2 Internet Backbone
Providers) in US/Europe get to dictate how much the smaller networks in
developing countries need to pay in order to terminate their internet requests
for email, web, dns, voip and other services into their Network. Even our much
celebrated TEAMS, EASsy and other projects cannot escape these Transit
Interconnection Costs. Ofcourse if you do not like their Interconnection
Charges you are free to take a walk into nowhere (read: stay offline).<br>
<br>
Another relationship does exist, the Peer-to-Peer relationship which is
equivalent to Mobile phone company Y and company X both having equal or similar
number of customers/value e.g. 5million each. In such a relationship, the two
Internet Backbone/Service providers chose NOT to charge each other anything.
Traffic between the two is exchanged reciprically for free but below each of
this big Networks are the smaller networks (read African networks), that must
pay Transit Charges. Put bluntly, Africa and other developing countries are
subsidizing Internet Costs for the rich nations in the North.<br>
<br>
Many studies have been carried out to get us out of this fix such as the
Halfway-propositions, the ICAIS, etc but todate the status quo
remains. The standard response has remained 'If it current
interconnection models are working, why should you try and fix them?'<br>
<br>
1 day for comments, corrections and/or proposals on this theme.<br>
<br>
walu.<br>
<br>
Ref: for some of the Studies:<br>
International Charging Arrangements for Internet Services, Module I, ICAIS, p.3<br>
<a href="http://www.tmdenton.com/pub/reports/icais_mod1_ch1.pdf">http://www.tmdenton.com/pub/reports/icais_mod1_ch1.pdf</a><br>
<br>
The Half-Way Proposition.<br>
<a href="http://www.balancingact-africa.com/news/back/balancing-act_130.html">http://www.balancingact-africa.com/news/back/balancing-act_130.html</a><br>
<br>
<br>
<br>
<br>
<br>
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