4. TECHNOLOGY OPTION FOR EFFICIENT INTERCONNECTION - INTERCONNECT EXCHANGE

As can be seen above there will normally be a problem of capacity constraint in the existing switches of incumbent to provide much needed timely interconnection to the new operators. In addition the bilateral interconnection among the service providers is a very inefficient way of interconnection in a multioperator, multi-service scenario. This problem can be tackled by establishment of a common platform for interconnection where all the operators can interconnect. Such an arrangement is commonly known as ‘Interconnect Exchange’ which is described below:-

4.2 The basic concept of the interconnect Exchange is to enable different operators to interconnect at a common point to exchange mutual traffic efficiently. This has been shown in the diagram below:

4.3. The purpose of an Interconnect exchange is to provide a common independent platform for interconnection for mutual traffic exchange & billing and settlement of interconnect usage charges (IUC) for all the existing and future operators in a particular region.

In order to ensure that this service is non discriminatory, the Interconnect Exchange must be ‘Neutral’ & ‘Autonomous’ and must have the confidence of both the Regulator and the Operators. An Interconnect Exchange reduces the numbers of
interconnection links required from each operator significantly. It also provides a single processing system, that can more easily generate comparison reports from the top level to the most detailed reports, because data structures and internal schematics are common. It can also take over all the functions relating to the ‘Clearing House’ i.e. the preparation of billing information, reconciliation reports and also the reconciliation process itself.

4.4. The Benefits of an Interconnect Exchange to the Operators

The benefits of an Interconnect Exchange to the
operators are summarized below:

• Simplification of the Interconnect Network.
  
  
• Optimization of number of interconnection links resulting in savings in number of links (E1) for various operators and also saving in number of interconnect ports required in the incumbents exchange.