| International Internet Connectivity |
| Rapporteur Groups activity |
One of the more important decisions taken by the ITU relates to a
recommendation (D.50) regarding Internet traffic exchange or
so-called "peering" or transit arrangements between Internet
service providers and Internet backbone providers
which is needed in order for the ISPs to obtain global
Internet connectivity for users of the Internet.
This system works well in most industrialized countries,
but for developing countries the issue of access to the Internet remains
costly and suffering from lack of band width capacity.
This situation is discussed in a Commission background paper and a
recent contribution to ITU study group 3.
The background paper and the contribution are
available in PDF format  [46kb]
and [74kb].
A special so-called rapporteurs group which deals with ITU
Recommendation D.50 about international Internet connections (IIC)
regarding transit or exchange of traffic on the international
Internet backbone networks, met during the last
three days of April in Brussels to try to agree on what the
problem or problems are regarding the proper functioning of this
market. At the meeting the main discussions focused on how traffic
is actually exchanged on the Internet so that all
delegates were able to properly understand how the mechanisms of
Internet connectivity actually work and how backbone network
service providers operate and conclude agreements with local
or international Internet service providers.
A session of the rapporteurs meeting was devoted to helping smaller
networks with limited traffic to improve their cost management
for accessing the Internet. Presentations about this by Colin
Shackleton (New Zealand) and by Jacques Seini (Burkina Faso)
are available at: [115kb]
and [405kb].
It was agreed at the meeting that the high costs of cdonnectivity between
least developed countries and the Internet
backbone networks remains a serious problem for these countries.
Appropriate means to help resolve this problem clearly need to be agreed and put to work.
Abossé Akue-Kpakpo (Togo) presented the view that the economic survival
of Internet service providers in his country was becoming a serious issue because
of these high connectivity costs. His presentation entitled problems
for the development of the Internet in developing countries is
available here (in French):[86kb].
The question of possible anti-competitive behaviour by the major
backbone network operators remained a contentious issue at
the meeting. Several presentations , based on considerable research,
addressed this issue. The presentation by Dr Daniel Roseman (Roseman Associates,
Ottawa,Canada) [57kb]
gave a very extensive picture of the associated international
discussion on the international Internet connectivity issue and
concluded by offering possible ways forward. See also the full
study by Dr Roseman [562kb].
In addition, an econometric study on the relationship between transit and
peering was presented by Dr Emanuele Giovannetti of Cambridge University.
His presentation is available here: [48kb],
together with other relevant background papers: [228kb],
[36kb],
[329kb].
The views of Telstra Corporation of Australia on the issue
of international internet interconnection were also presented
[66kb]
[81kb].
Telstra's contribution intended to provide background
to the discussion regarding why a major Internet backbone provider
had changed its position regarding the need for any regulatory
intervention in this market.
Presentations by Cable and Wireless and AT&T provided extensive information and
data about the working of the Internet
and about changes in the Internet market.These presentations also addressed
the ways in which Internet traffic is
becoming more regional in nature. The presentation by Cable
and Wireless is available here
[2Mb].
Interested readers may also want to review a study on the
issue released by the European Commission in May 2002: "The
Economics of IP Networks - Market, Technical and Public Policy
Issues Relating to Internet Traffic Exchange", by WIK-Consult.
The study provides descriptions and analysis of some issues
concerned with commercial traffic exchange on the backbone
Internet: market structure and competition, addressing, quality of
service. Executive
summary [292KB] and Main
Report and Annexes [1.85MB]. This study
provided a significant part of the market analysis which provided
the basis for the Commission’s decision that ex-ante regulation
of the international Internet backbone market would not be
recommended.
It was also suggested that one way of moving forward on this issue was to follow the so-called Halfway proposition made by
Afrispa in Johannesburg in October 2002 (see http://www.afrispa.org/initiatives.htm).
This proposition does not ask for the introduction of regulation by the ITU as a way forward, but suggests to facilitate the
creation of traffic aggregation within Africa. This would avoid the need to invest in expensive additional capacity between Europe
or North America and African countries.
Results of ITU's Study Group 3 meeting in Geneva on 16-20 June 2003
The results of ITU's study group 3 meeting held in Geneva on 16-19
June are that the two rapporteur groups on the international Internet connectivity and traffic flow were
authorized to hold a
second joint meeting to hopefully conclude their work on the outstanding questions from their first meeting in Brussels on
28-30 April and to consider possible modifications to Recommendation D.50. The rapporteur for the IIC group
concluded as follows:
-
Recommendation D.50 may need some modification in order for it to reflect how the markets for international Internet connectivity
operate; such a modification could aim to facilitate commercial negotiations between the parties concerned. No consensus was
reached by the rapporteur group on the need for a modification when it met in Brussels on 28-30 April. However, in order to
further the conclusion of the work, an additional joint rapporteurs group meeting is being planned for 20-21 October 2003
to again take place in Brussels. This meeting will be a continuation of the April meeting and is intended to enable a
review of what occurred at the April meeting and to discuss the remaining contributions which were not concluded in April, in
addition to new contributions regarding possible modifications to Recommendation D.50; a draft proposal to modify
Recommendation D.50 along the lines above is available here:
[23kb]; the additional joint rapporteurs meeting will not take place
until all interested participants are again free to travel after the SARS crisis.
-
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 rapporteur group is likely to recommend special actions in this respect to the international donor community to be undertaken
in possible collaboration with ITU’s development sector. This could include efforts to facilitate the creation of traffic
aggregation within regions in developing countries in order to avoid the sending of this traffic over expensive satellite or
cable links used for intercontinental traffic, for example between Africa and Europe or North America; the United States presented a
contribution regarding mechanisms that countries have already employed that have assisted them to achieve competitive Internet
access. This contribution will be further discussed at the second joint meeting of the rapporteur groups on 20-21 October in
Brussels.
-
There is also 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
rapporteur group could decide to recommend that existing or new economic and social development programmes be refocused to devote
available resources to help resolve the human resource problem.
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