Transit & peering Taiwan Internet
Interconnection problem
Advisor：Kuang Chiu Huang
Group：Ting Wei Lin,Ting Huei Lee, Kuei Chin Fan
Outline
Background
Transit and peering
Respect of ISPs
Analysis
Conclusion
Background
 Development of Taiwan’s telecom industry
 Telecommunications industry has a typical characteristic
of public utilities industries they have exclusive
Background
1987~1996
The first time to open
to competition in
telecom industry
1996~2000
The
introduction of
infrastructure
competition
2000~
Open
competition
completely
Background
 The first time to open to competition in telecom industry
1987
1989
1994
• Began the liberalization of terminal equipment
• liberalization of the circuit using
• common data circuit rental released
• open value-added network services
• Open Digital Low Power Wireless telephone (CT-2) business
Background
 The introduction of infrastructure competition
1996
•Pass the three laws of telecom
mobile phone penetration rate
of 108% in 2002,it was the highest
• open business of mobile phone, Radio
rate
in
the
world!!
Paging,
mobile
data
and wireless telephone
1997
Background
 Open competition completely
• open international submarine cable
2000 • International Simple Release (ISR) Business
2003
2006
2007
• mobile virtual network operator business
• the National Communications Commission was established
• Open wireless broadband access services
Background
 Memorabilia
April,2009
NCC asked
fixed-line
operators to
discuss
coordination
August,2009
Chunghwa
Telecom reduce
the price
April, 2013
NCC held the
hearing about
relevant draft
amendments to
the network
Background
 Current state
80% UP
domestic
broadband
users
first provide
bandwidth
services
Chunghwa
Telecom
Background
 Current state
Chunghwa
Telecom
Charge the high rate fees
Other ISPs
 what is reasonable on network interconnection prices?
Transit and peering
 Peering
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 peering
 Transit
Passing packets to itself and other downstream domains, in addition, is also
responsible for the traffic to other domains
Transit and peering
 Conclusion
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 peering
 Conclusion
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 mechanisms
States supervisory authority for network interconnection policy, are "low control;
highly consultative; scale quite free interconnection" principle.
 First mover advantage
With unequal business model to control prices, just let small ISPs use resources of
CHT in vain.
 State-owned enterprises
Resources 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.
Analysis
 Monopoly
• Other operators can not negotiate peer
Other ISP industry can not be commercial negotiations on an equal footing to get
a reasonable access fee.
• Price squeeze
Vertically integrated industry has a monopoly position, to increase the price to the
downstream industry competition.
• The market can not generate a positive cycle
When 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 controversy
CHT 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
ISPs In
Taiwan
It will harm the industry and block the
Chunghwa
transit fee
Free peering
development
.
Telecom
Bigger ISPs in
the world
 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