Title: A parametric cost model for interconnection service price determination

Authors: Swadesh Kumar Samanta, John Woods, Mohammed Ghanbari

Addresses: Department of Computing and Electronic Systems, University of Essex, Colchester, CO4 3SQ, UK. ' Department of Computing and Electronic Systems, University of Essex, Colchester, CO4 3SQ, UK. ' Department of Computing and Electronic Systems, University of Essex, Colchester, CO4 3SQ, UK

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.

Keywords: asymmetric pricing; cost models; cost optimisation; interconnection pricing; interconnection services; network design; parametric modelling; services; standards; telecommunications; price determination; rural areas; urban areas; balanced networks; network deployment.

DOI: 10.1504/IJSS.2008.020059

International Journal of Services and Standards, 2008 Vol.4 No.4, pp.453 - 470

Published online: 22 Aug 2008 *

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