The Big Bang
Overshadowing all previous efforts, though, is a similar award to be made by the GSM Association, representing something in excess of 2.8 billion telephone numbers. Since the usefulness of any peering entity is a function of the mass of numbers that participate in the exchange, this will be a huge development.
The ramifications could be quite wide. The GSM consortium, in particular, is in position to dramatically reshape the cost of network interconnections, both between its own members, as well as for other network providers
that want access to the GSM peering fabric.
To be sure, European GSM operators, in particular, have incentives to lower the cost of “roaming,” as they have been ordered to do so by the European Commission. A VoIP peering fabric including 2.8 billion GSM numbers will be quite helpful in that regard.
The GSM peering fabric, the cable fabric and the other fabrics also will keep undermining the viability of business models based on payment of significant termination fees, as those rates will continue to drift to a lower, market-based rate rather than the disparate rates now prevalent around the globe.
The value of such a peering fabric also grows daily as more and more calls and numbers are in the wireless domain, rather than the wired domain, and as GSM closes on three billion numbers in service globally.
So one of the much-watched developments we all should be aware of is the award of contracts to create the GSM and cable fabrics. Aside from the direct impact on termination costs, there is the very real business impact on the suppliers chosen to operate the exchanges.
To be sure, erstwhile suppliers have been lining up. VoEX, for example, recently created a Wireless Peering Grid to provide just such peering operations.
The VoEX SuperRegistry already contains more than 250 million phone numbers and their related VoEX IP addresses, allowing carriers that register their network entry points and phone numbers with the VoEX Wireless Peering Grid to gain managed IP access, through VoEX, to each others’ endpoints.
The Wireless Peering Grid allows wireless carriers to carry more calls longer distances over IP, eliminates intermediary carrier charges, and avoids PSTN interim hops while providing a framework for future advanced applications. Peering Grid participants can terminate calls to each other at costs well below local tandem rates.
In addition, wireless carriers can choose to earn compensation for calls handed off directly to their networks by VoEX.
Transaction Network Services, meanwhile, acquired InfiniRoute Networks. The acquisition advances TNS ability to offer VoIP peering services to its global customer base.
NeuStar, the VoIP Peering Fabric, XConnect, Fibernet Telecom Group and Arbinet also operate electronic numbering (ENUM) peering exchanges. And other efforts exist as well.
Cbeyond, Avaya, BroadSoft, Centrepoint Technologies, Cisco Systems and Mitel collaborate as part of the SIPconnect framework for IP interconnection and Session Initiation Protocol trunking.
Acme Packet, meanwhile, has created what it calls the “Connected Universe” program supporting traffic exchange between users of Acme Packet border control platforms. Initial members include Global Crossing, Impsat Fiber Networks, Neustar and VeriSign. Some 325 global service providers, including 100 of the Tier 1 variety, are potential members.
The GSM and cable consortia will have a number of business models to choose from, including both “settlement free” interconnection and “for fee” models.
For-fee models might be based on flat fees for each number contributed, on a monthly or yearly basis. Some existing models charge $5 a number each year. Other approaches might base fees on successful lookups, allowing calls to be completed using IP on each end of the session, for perhaps a cent for each transaction.
Other conceivable models are fees applied for each call, ranging from one to perhaps five cents a call. Fees per minute, at perhaps .001, also are in use. And while multilateral peering is available, so is bilateral peering.
There are perhaps good reasons for bilateral agreements between the largest carriers and multilateral arrangements for smaller providers.
Without much fanfare, this might be the year that ENUM-based peering actually moves beyond smaller islands to seriously large networks. We would expect something to happen on that front within the next 60 days. IP
