Pricing & Interconnection
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Interconnect tariff models
Market introduction of European Numbers
Serving to Service Network relationship
Possible Service Network scenarios
Serving to Service Network tariff issues
ETNS network development
Len Tunney
Chairperson, ETNS Interconnect Working Group
+352 091 752246
[email protected]
ETNS
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ETNS Interconnect Tariff Models
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ETNS
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Revenue neutral local
Revenue neutral national
Revenue share local
Revenue share national
Incoming from non-ETNS country
Note : Retail and interconnection tariff models are still under
discussion within the ETNS Steering Committee and the
ETNS Interconnect Working Group.
Constructive input welcome
ETNS Revenue Neutral Local
• Calling party pays local tariff
• ETNS customer not charged an additional per call fee
• May be popular where majority of calls terminate close to calling
party & are not switched beyond originating operator’s network
• Possible services :
– Franchised taxi service
• same +3883 number for many European cities
– Fast food home delivery
• Large penetration in many European countries, Eg. Pizza Hut
ETNS
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• Service provider may not charge per call fee to network operator’s
- receive income from service provided, Eg. taxi service as
Service Provider
ETNS Revenue Neutral National
• Calling party pays national tariff
• ETNS customer not charged an additional per call fee
• May be popular where majority of calls terminate within the same
country as the calling party & are not switched beyond originating
operator’s network
• Possible services :
– Travel industry
• Hotel chain front desks, airlines, franchised travel agents
operating many offices in several countries
– Banking industry
• Operations in several countries but offices in each country
ETNS
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– Roadside assistance
• Alliances between different organisations in many European
countries
ETNS Revenue Share Local
ETNS
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• Calling party pays local tariff
• ETNS customer pays per call fee to Service Provider
• May be popular where majority of calls cross international
boundaries
• Service Provider pays Serving Network or reverse depending on
which operator carries call the greatest distance
• Possible services :
– Companies offering services in several countries but without
offices in each country.
– Could be used for marketing purposes where ETNS customer
wishes calling party to pay small amount for call & ETNS
customer pays higher percentage of total call cost
ETNS Revenue Share National
• Calling party pays national tariff
• ETNS customer pays per call fee to Service Provider
• May be popular where majority of calls cross international
boundaries
• Service Provider pays Serving Network or reverse depending on
which operator carries call the greatest distance
• Possible services :
– Companies offering services in several countries but without
offices in each country
– Could be used for customer service purposes where ETNS
customer wishes calling party to pay larger share of call cost
ETNS
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ETNS Revenue Share National
Service
Provider
Non-call Related
Bill
Service Producer
Revenue Share
National
Call Related
Service
Producer
Assisted
Network
Bill
ETNS National
Bill
Serving Network
Revenue Share
National
Bill
ETNS customer
Revenue Share
National
Service
Network
Serving
Network
Bill
Bill
Serving to Service Network
Revenue Share
National
ETNS
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Terminating
Network
Service Network
Revenue Share
National
Termination
Tariff
Bill
Incoming from Non-ETNS Country
• Calling party charged an international rate similar to the rate
charged within originating country for a call to a geographic
number in an average European country.
• One rate applied to calling party regardless of retail tariff
arrangements within ETNS area.
• Operators within the ETNS zone are free to offer international call
termination rates to ETNS numbers.
• ETNS customers able to decide whether they will accept calls
originated from outside ETNS area.
ETNS
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ETNS Revenue Share National
Service
Provider
Service Producer
Revenue Share
National
Non-call Related
Bill
Call Related
Service
Producer
Assisted
Network
Bill
Calling Party tariff:
UK - 33.3 €c/ for 3 minutes
AUT - 48 €c for 3 minutes
Bill
Call origination fee:
UK - 2.73 €c/ for 3 minutes
AUT - 7.8 €c for 3 minutes
Bill
Service Network
Revenue Share
National
ETNS Customer
Revenue share
National
Service
Network
Serving
Network
Bill
Bill
Serving to Service Network
Revenue Share
National
ETNS
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Bill
Remainder:
UK - 21.57 €c for 3 minutes - 64.7% of calling party tariff
AUT - 31.2 €c for 3 minutes - 65% of calling party tariff
Remainder = (Calling Party tariff - call origination fee - call termination fee)
Call termination fee:
UK - 9 €c/ for 3 minutes
AUT - 9 €c for 3 minutes
Terminating
Network
Call termination fee based on international
termination tariff of 3 €c per minute.
Market Introduction of European Numbers
• Publicise European numbers
– By telecommunications industry
• First, to internal participants
• Next, to general public
– By ETNS customers
• Use European numbers for everyday services
• Develop trust in European numbers
– Simple tariffs, easy to understand
– European number  an expensive call
ETNS
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• Allow the market to determine future
Changes in Perception
• For operators, 00  international
– ETNS calls not routed as international calls
– 003883 passed between operators at
national interconnect level
• For customers, 003883  international
– 003883 tariffs are not international tariffs
ETNS
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Serving to Service Network Relationship
Serving Network Responsibility:
Route ETNS calls to the Service Network that currently switches a
particular ETNS customer’s traffic to its destination.
Serving Network to Service Network Relationship:
Passing calls between Serving Networks & Service Networks is likely
to produce the most friction between ETNS players because:
• The choice of Serving Network is under the control of the originating
operator.
• The choice of the Service Network is under the control of the Service
Provider.
ETNS
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• Serving Networks are forced to develop relationships with all Service
Networks.
Serving to Service Network Relationship - 2
• Service Network POP could be:
• In same city as calling party
• In another part of the same country as calling party
• In a different country to the calling party
• Payments between Serving and Service Network for call
carriage between the networks should reflect the distance the
call is carried.
• Serving Network operators have no control over Service
Network POP locations, but have a responsibility to deliver
calls to these locations.
ETNS
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• Some Service Networks could have significantly more POPs
than some Serving Networks, ie. a Service Network POP may
be available in same city as calling party but Serving Network
POP is located in another part of country.
• Interconnect tariff arrangements between Serving & Service
Networks must attempt to balance these issues.
Possible Service Network Scenarios
• One POP in one country offering services in many countries
- Many calls between Serving & Service Networks will be across
international boundaries
• One POP in each country in which services are offered
- The distance between Serving & Service Networks will be long for many
calls
• Distributed network of POPs in some countries in which
services are offered
- In some countries, the distance between Serving & Service Networks will be
long for many calls
- In other countries, there will be a short distance between Serving & Service
Networks
• Distributed network of POPs in each country in which
services are offered
- The distance between Serving & Service Networks could be short for most
calls
ETNS
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Serving to Service Network Tariff Issues
Serving & Service Network operators will wish to minimise for call handling costs as
much as possible.
For some tariff models, all call revenue will be received by the Assisting/Serving
Network from the calling party.
• Money will need to be passed forward along the chain of players involved.
For other models, some revenue will be received from the calling party by the
Assisting/Serving Network while other revenue will be received by the Service
Provider from the ETNS customer.
• Money may flow in either direction depending on factors such as:
– The relative amounts paid by the calling party and the ETNS
customer.
ETNS
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– The distance the call is carried between the Serving & Service
Networks.
Serving to Service Network Tariff Issues - 2
• For some tariff options, Serving Network will pay Service Network.
The amount paid to the Service Network should decrease as the distance
between the Serving & Service Networks increases.
• For some tariff options, Service Network will pay Serving Network.
The amount paid to the Serving Network should increase as the distance
between the Serving & Service Networks increases.
• For some tariff options, the Serving Network will pay the Service Network where
the distance between the two operators is small while the Service Network will
pay the Serving Network where the distance is large.
ETNS
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ETNS Network Development 1
SgN 1
AsN 1
SN 1
AsN 2
SgN 2
Assisting Network Cost Drivers
- Analyse +3883[ESI]
- Switch call to Serving Network POP
(could be short or long distance)
ETNS
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TN 1
Assisting Network Options to Control Costs
- Become a Serving Network
- Change Serving Network provider - Select
Serving Network with POPs close to
Assisting Network POPs
Serving Network Cost Drivers
- Maintain SgN database
- Analyse +3883[ESI][SN] to find RN
- Switch call to Service Network POP
(could be short or long distance or
international)
Serving Network Options to Control Costs
- Pass call as close to Service Network as
possible
ETNS Network Development 2
SgN 1
AsN 1
SN 1
TN 1
AsN 2
Country A
SgN 2
Country B
AsN 3
TN 2
SN 2
SgN 3
ETNS
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- Some Service Networks will offer services & POPs in multiple countries
- Others will offer services in multiple countries, but POPs in only one country
ETNS Network Development 3
SN 1
AsN 1
SgN 1
SN 2
SN 3
TN
SN 4
AsN 2
SgN 2
Country A
SN 5
Country B
SN 6
AsN 3
SN 7
SgN 3
TN
SN 8
SN 9
ETNS
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- A growing number of Service Networks will emerge with increasingly complex
interconnection arrangements between Serving & Service Networks.
- All interconnection arrangements must be seen as acceptable and commercial
arrangements should be fair to both parties.