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  • A single settlement solution for all operators can be implemented more quickly than the time it takes to build their own interconnect system by the operators.

  • Due to simplicity in operation, staffing level for the operators are reduced, as there is no longer the need for a large establishment to manage interconnect bill preparation and reconciliation.

  • A wide range of additional management information is available both as standard and tailor made for a particular operator.

4.5. The Benefits of an Interconnect Exchange to the Regulator

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

  • Facilitate timely interconnection in a multioperator, multi-service environment in cost effective manner.

  • Identifying market share, market growth and interconnect trends

  • Modeling the likely impact of any proposed change in interconnect policy.
 
  • Implementing interconnect policy change
    at a single point.

  • Implementation of new interconnect services and policies at no additional cost. Examples include the introduction of Number Portability (NP) and Carrier Pre-selection (CPS) and Intelligent Network (IN) type services, Traffic Monitoring at a single place.

4.6. Funding and Revenue Generation for Interconnect Exchange

The interconnect Exchange should normally be funded by the industry on contribution basis. Alternatively it can be installed by a third party (interconnect operator) who should be approved by regulator or the industries associations. In rare cases it can be funded (partially or wholly) by Govt. or a neutral organizations. Being a common facility each operator may pay a small portion of the outgoing inter- operator call revenue for its operation. For additional facilities like Clearing House, reconciliation, MIS separate charge can be levied. If the exchange is setup by industry body it should be run on “not- forprofit” basis and charges for various services should be just enough to recover the cost. In case of third party operation, these charges should be determined by regulator taking into account all the underlying costs.