Effective interconnection regulation can bridge the so-called Digital Divide, according to the International Telecommunication Union (ITU) (www.itu.int).
In a just-released report, the Geneva, Switzerland-based group says that practical regulation of interconnection could be vital to ensure both maximum “productivity and efficiency of rapidly growing networks and of extending those networks to those who cannot now enjoy them.”
The ITU’s 240-page report, entitled “Trends in Telecommunication Reform 2000-2001: Interconnection Regulation,” details why such regulation is particularly important for the Information and Communications Technology (ICT) market, which includes fixed-line, mobile, satellite, cable television and Internet and IP-based networks.
“A network is only as valuable as the people it connects,” according to the report. “When additional end users gain access, it increases the communications possibilities not only for that end-user, but for every other individual and business connected to the network.”
The ITU reports that a web of networks currently is needed to provide consumers with a variety of services. In order for this web of networks to function, it must be interconnected both within individual countries and internationally, according to the ITU.
“Each time a new access line is added to the ICT network, it expands the range of destinations with which callers can communicate,” Hamadoun I. Touré, director of the ITU’s Telecommunication Development Bureau, said in a statement.
"Every time new networks interconnect, the value of a given network increases exponentially,” Touré said. “This applies to stockbrokers electronically trading shares of Fortune 500 companies in New York City, as well as to rural women lining up to use a village mobile phone in Bangladesh.”
With a solid interconnection framework, the ITU says a foundation is laid for developing a competitive marketplace. This in turn provides market incentives for rapid and efficient telecom infrastructure development, according to the ITU report.
"Any-to-any" interconnection – or the ability of any network operator to connect with any other operator – must become a primary objective of current telecom policy in order to promote network build out that supports universal access to ICTs, the ITU says.
Effective interconnection frameworks also provide benefits to a variety of market players, the ITU says. For instance network operators benefit from increased demand; workers benefit from increased employment; economies expand; and governments benefit from increased tax revenues.
The ITU suggests that while regulators and policy makers understand the importance of interconnection, they face many tough decisions in implementing related regulations and policies.
The ITU report is the third edition of the annual report on sector restructuring. The report includes best-practice examples of how regulators and policy makers from around the globe deal with interconnection challenges.
The report also includes reference materials, such as interconnection guidelines published by several regional regulatory organizations.
