advisor : kuang chiu huang group : ting wei lin,ting huei lee, kuei chin fan transit &...
TRANSCRIPT
Advisor: Kuang Chiu HuangGroup: Ting Wei Lin,Ting Huei Lee, Kuei Chin Fan
Transit & peering Taiwan Internet Interconnection problem
Background
Transit and peering
Respect of ISPs
Analysis
Conclusion
Outline
Background
Development of Taiwan’s telecom industry
Telecommunications industry has a typical characteristic of public utilities industries they have exclusive
Background
The first time to open to competition in telecom industry
The introduction
of infrastructure competition
Open competition completely
1987~1996 1996~2000 2000~
Background The first time to open to competition in telecom industry
1987
• Began the liberalization of terminal equipment
1989
• liberalization of the circuit using• common data circuit rental released• open value-added network services
1994
• Open Digital Low Power Wireless telephone (CT-2) business
Background
The introduction of infrastructure competition
1996
• Pass the three laws of telecom
1997
• open business of mobile phone, Radio Paging, mobile data and wireless telephone
mobile phone penetration rate of 108% in 2002,it was the highest rate in the world!!
Background
Open competition completely2000
• open international submarine cable• International Simple Release (ISR) Business
2003
• mobile virtual network operator business
2006
• the National Communications Commission was established
2007
• Open wireless broadband access services
Background
Memorabilia
NCC asked fixed-line
operators to discuss
coordination
Chunghwa Telecom reduce
the price
NCC held the hearing about relevant draft
amendments to the network
April,2009 August,2009 April, 2013
Background
Current state
Chunghwa Telecom
first provide
bandwidth services
80% UP domestic
broadband users
Background
Current state
what is reasonable on network interconnection prices?
Chunghwa Telecom
Other ISPs
Charge the high rate fees
Transit and peeringPeering
Internet is composed of many ISP's network. Depending on the connection type and pay conditions can be divided.
• Public peering
• Private peering
Transit and peeringTransit
Passing packets to itself and other downstream domains, in addition, is also responsible for the traffic to other domains
Transit and peeringConclusion
The Internet and fixed-line market is still only oligopolistic. the authorities should be actively controlled. While others were also thrown free interconnects voice, but this in turn involves fairness and justice.
Transit and peeringConclusion
The Internet and fixed-line market is still only oligopolistic. the authorities should be actively controlled. While others were also thrown free interconnects voice, but this in turn involves fairness and justice.
Respect of CHT
Market mechanismsStates supervisory authority for network interconnection policy, are "low control; highly consultative; scale quite free interconnection" principle.
First mover advantageWith unequal business model to control prices, just let small ISPs use resources of CHT in vain.
State-owned enterprisesResources put into the construction is tax, if free interconnection, is tantamount to allow the private industry use national resources.
Respect of other ISPs If other carriers doesn’t interconnect with CHT, the line must go through
oversea, this would appear delay; therefore no other viable alternatives.
CHT sets high prices of Internet interconnection.
AnalysisMonopoly
• Other operators can not negotiate peerOther ISP industry can not be commercial negotiations on an equal footing to get a reasonable access fee.
• Price squeezeVertically integrated industry has a monopoly position, to increase the price to the downstream industry competition.
• The market can not generate a positive cycleWhen interconnecting, the net inflow are required to pay to the net outflow.So ISPs will seek great ICP to enhance the customer experience and reduce the.Moreover,ICP get more resources to optimize content
But the current situation in Taiwan, small ISPs buy bandwidth of CHT to enhance the customer experience, ICPs do that for the same reason.
Government control controversyCHT has gradually cut costs and improve interconnection issues above unfair, but CHT and other operators on interconnection charges are still unable to reach a consensus.
Industry self-regulation failure (TWIX inefficient)CHT past only use low bandwidth links to TWIX (only 1G in 2009), resulting in other ISPs need to buy its bandwidth. Now,CHT has increased bandwidth to TWIX about 187G (Oct 2013).
Conclusion
Chunghwa Telecom
ISPs In Taiwan
Free peeringBigger ISPs in
the worldtransit fee
It will harm the industry and block the development.
Government should forma the vertical price squeeze according to the Fair Trade Act
Establish relations linked between wholesale price and retail price in the future
1. Enhance the competitiveness of existing business.
2. Subscriber loop circuit fees will thus reduce
3. Attract new entrants into the broadband market