During Session 5 on ‘IP and Traditional Telecom (Voice) Interconnection – A World of Divergence” Ms. Natalija Gelvanovska, Head of Network and Access Division, at the Communications Regulatory Authority of Lithuania, and the writer of the discussion paper titled ‘Coexistence of traditional and IP interconnection’, explained that the regulators should not consider the ‘hands off’ approach but should make the most of the positive experience and ensure regulatory goals are achieved through the following:

• More symmetric interconnection regulation: in order to ensure interconnection where it is feasible and needed;
  
  
• Extended transparency obligation: because it lowers bargaining costs and works as a market self regulation tool;
  
  
• Reliable and Robust interconnection: because the consequences of a disruption or interruption in interconnection functions could be serious;
  
  
• QoS: because it could enable new forms of discrimination between incumbent’s services and those provided by interconnecting competitors;
  
  
• Open forum for the discussions: to discuss migration issues and to have a place to raise any other relevant question.
  
  

Upon the request of the moderator, Mr. Allan Horne, the floor was opened for the panelists. The discussion can be summarized as follows:

• Adoption of three main regulatory principals which could promote investments in Next Generation Networks: neutrality, transparency and non-discriminatory treatment in a NGN environment.
  
  
• Implementation of some fundamental elements to ensure an appropriate framework for NGN such as the establishment of adequate parameters to monitor Quality of Service, the security of new generation networks and the interaction with content providers in this climate.
  
  
• Ensure the greatest possible effective and efficient interconnection models in order to allow users benefit from the Next Generation Networks.
  
  

Mr. Furiuchi, Diretcor of Tariff division at the MIC in Japan, presented the experience of Japan in the field of implementing IP interconnection. The interconnection rules put in place by the regulator have clearly contributed to a rapid increase of broadband services in Japan. In response to competition, the dominant carrier has rapidly started deploying NGN services with FTTH access. The main challenges encountered in the introduction of IP interconnection regulations are:

• Defining the interconnection cost in NGN (sharing of IP network and collocation of facilities)
  
  
• Implementing the specific accounting system for NGN interconnection which is different from accounting systems of traditional interconnection
  
  
• Calculating interconnection cost for each operator
  
  
• Defining the Quality of Service level
  
  
• Dealing with problems related to Points of Interconnections
  
  

In conclusion, the regulators have a critical role in promoting competition and encouraging investments in Next Generation Networks. The ultimate goal for regulators is to converge divergent interests; regulatory measures should be taken to ensure the equilibrium between consumers’ needs for good quality of services and State objectives to create employments and ensure certain revenues.