A parametric cost model for interconnection service price determination
by Swadesh Kumar Samanta, John Woods, Mohammed Ghanbari
International Journal of Services and Standards (IJSS), Vol. 4, No. 4, 2008

Abstract: In developing countries, telecom operators are reluctant to deploy networks in rural areas as return on investment is less. The return on investment is dependent on revenue which is shared when a service such as voice call is provided by more than one operator. The sharing mechanism is done through interconnection pricing, and regulators worldwide fix the same price for a whole country ignoring the variation of cost between rural and urban areas. Based on real world data, we developed a parametric model which addresses the shortfalls of the current mechanism and simultaneously ensures balanced network deployment in a country.

Online publication date: Fri, 22-Aug-2008

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