A parametric cost model for interconnection service price determination. (26th August 2008)

• Record Type: Journal Article
• Authors: Samanta, Swadesh Kumar; Woods, John; Ghanbari, Mohammed
• Is Part Of: International journal of services and standards. Volume 4:Number 4(2008)
• Page Start: 453
• Page End: 470
• Publication Date: 2008-08-26
• Subjects: 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; Standardization -- Periodicals; Customer services -- Standards -- Periodicals; 389.605
• Languages: English
• ISSNs: 1740-8849

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.