|ITU-T Study Group 3 Special Projects and Issues
|International Internet Connectivity
1. Study of International Internet Connectivity (1998-2000)
Study Group 3 started examining the international Internet
connectivity issue in the year 1998. The objectives of study were,
at that time, to identify the differences between the Internet and
the Public Switched Telephone Network (PSTN) costing models. Study
Group 3 agreed that the PSTN costing model was inappropriate.
Discussion on whether the existing private lease model is the
right model highlighted two different views and no consensus was
reached within the Study Group 3. The Study Group 3 was also
unable to develop an agreed set of principles on the equitable
cost compensation between circuit providers.
In early year 2000, the Regional Tariff Groups have worked on
the international Internet Connectivity and developed a basic
principle from which it would be possible in the future to develop
a more details of principles. The draft Recommendation developed
by the Regional Groups called for respect for the principle of
fair trade, which was already applied in all other service
In June 2000, Study Group 3 attempted to gain agreement on the
proposal made by the above mentioned Regional Tariff Groups but
failed due to differing views on policy. It therefore decided to
submit the draft Recommendation to the Sector’s governing body,
the World Telecommunication Development Assembly (WTSA-2000) to be
held in September 2000.
2. World Telecommunication Standardization Assembly (Montreal, Canada)
The discussions on this very contentious issue found a positive
outcome on the last day of the Assembly. The purpose of the
recommendation is to set out the principle according to
which there should be bilateral agreement when two providers
establish a circuit between two countries for the purpose of
carrying Internet traffic. The possible need for compensation
between the providers has also been recognized. When providers
install Internet circuits, they generally have a choice between
the "sender-keeps-all" or peering system of bilateral
connections when traffic is more or less balanced, or the
asymmetrical system whereby the initiating provider pays for the
whole connection with the other country (full-circuit cost).
The Recommendation D.50 endorsed by the WTSA, which represents
a very delicate balance between the various interests, calls for
arrangements to be negotiated and agreed upon on a commercial
basis when direct Internet links are established internationally.
The Recommendation D.50 requires only that the two providers
involved reach a mutual agreement and does not prescribe any
particular formula or system, thus leaving to providers their
freedom to determine the forms or methodologies to be used in
implementing the principle.
The Recommendation D.50, which is voluntary, suggests that
parties involved take into account the possible need for
compensation for elements such as traffic flow, number of routes,
geographical coverage and the cost of international transmission
among others when negotiating such commercial arrangements. In
addition, the Assembly agreed that while international Internet
connections remain subject to commercial agreements between
operating agencies, there is a need for on-going studies in this
area. The Chairman recalled that the decision made in Montreal
provided a framework for future discussions and was therefore only
the beginning of a process where issues would be further analyzed.
Two countries - the US and Greece - made reservations and stated
that they would not apply it in their international charging
The full text of the Recommendation D.50 can be found by clicking here.
3. Study Group 3 further work during 2000-2004
After WTSA-2000, Study Group 3 decided to conduct further study
on the technical and economic development related to the
international Internet connectivity and to consider the need to
propose the development of general principles that may be relevant
to bilateral commercial agreement.
Study Group 3 decided to establish two Rapporteur Groups. The
first Rapporteur Group on International Internet Connectivity (IIC)
is in charge of developing further guidelines for facilitating the
implementation of Recommendation D.50 and the second Rapporteur
Group is in charge of examining the possibility of using traffic
flow as a main factor of negotiation for IIC.
Based on the proposals from those Rapporteur
Group 3 adopted a guideline [
which complements Recommendation D.50.
However, the study on the traffic flow methodology has not
concluded and the work continues.
Study Group 3 also agreed that the high costs of the
international circuit for Internet connectivity between least
developed countries and the Internet backbone networks remains a
serious problem for these countries. The joint rapporteurs’
group thought it appropriate to recommend special actions in this
respect to the international donor community to be undertaken in
possible collaboration with ITU’s development sector. These
special actions could include efforts to facilitate the creation
of traffic aggregation within localities, countries or within
regions in developing countries in order to avoid the sending of
this traffic over satellite or cable links used for
intercontinental traffic, for example between Africa and Europe or
North America. This effort would aim to maximise the retention of
local and national traffic within these regions and thus reduce
the dependence on international communications links.
It was furthermore suggested that there is a need to help the
development and use of the Internet in many developing and in
particular in the least developed countries, in order to ensure
new economic and social growth; the lack of human resources
capable of using and producing local content for example to
generate the use of the Internet for electronic commerce is
another very important problem. The joint rapporteurs’ group
proposes that the ITU starts work on ensuring that existing or new
economic and social development programmes be refocused to devote
available resources to help resolve the human resource problem.
4) New study period 2005-2008
Study Group 3 will meet in January 2005 in order to advance its
work related to International Internet Connectivity.