An Innovative Approach for Dynamic Evaluation of Telecommunications Interconnection Costs for Multimedia Real Time Services

Abstract

With the advent of the shared use of telecommunications infrastructure, the revenue sharing is becoming at the heart of economics. In fact, for modern highly interconnected telecommunication infrastructure, providing end-to-end services requires the use of different networks, which may be owned and operated by multiple enterprises. This implies costs to be paid by each operator for using the infrastructure of other operators. These costs are generally determined using general cost calculation models that are mostly limited to very traditional services. This paper presents a study of the limitations observed with the traditional cost calculation models and proposes a novel approach, where interconnection rates for multimedia services are not flat, but reflect real time costs and depend on the usage and time of use. The paper proves that this approach allows operators to better approximate the real incurred costs.