1. Interconnection and Regulation of IP-Networks Ass. Sven Tschoepe, LL.M 15/5/04 ITS 15th Biennial Conference Berlin, Germany September, 4-7 2004 Internationalisation and Regional Issues Parallel Session: Long Distance and Internationally Interconnected Networks

2. Interconnection and Regulation of IP-Networks Ass. Sven Tschoepe, LL.M 25/5/04 Outline Interconnection of IP-Networks - State of Play - Interconnection vs. Peering Further regulatory Aspects of IP-Networks - Access to bottlenecks - Bundling - Obligations on Network Security Regulatory discussions on Voice over IP (VoIP) Services

3. Interconnection and Regulation of IP-Networks Ass. Sven Tschoepe, LL.M 35/5/04 The different Areas of Regulation along the Value Chain of IP-Services 1.Local Access (Telco, Cable, or Mobile Network Operator) - Access to bottleneck facilities - Provision of wholesale broadband services - Bundling of services by incumbents - Network Security 2.IP-Connectivity (Network or Internet Service Provider) - Interconnection and Peering ---------------------------------------------------------------------------------- 3.(Voice over) IP Service (f. e. Free World Dial Up) - Access to Numbers -> Emergency Services - Consumer Protection - Public Surveillance for State Security

4. Interconnection and Regulation of IP-Networks Ass. Sven Tschoepe, LL.M 45/5/04 Interconnection At the time being interconnection between Internet Service Providers (ISPs) and Internet Backbone Providers (IBPs) is determined by the market and not regulated. The interconnection costs for Routing Equipment Bandwith and Transit are constantly falling. Concerns for dominance in the backbone market (WorldCom-Sprint Merger of 2000) are no longer existent. In most cases ISPs seeking interconnection to an incumbent’s PSTN will be able to negotiate on the basis of the operator’s published Reference Interconnect Offer.

5. Interconnection and Regulation of IP-Networks Ass. Sven Tschoepe, LL.M 55/5/04 Example of an Interconnection Policy Qwest's International IP Network Peering Policy of July, 1 2004: „Qwest selects International Interconnection Candidates based upon, among other things, costs, port availability and bandwidth capacity at particular locations, and the overall strategic benefit Qwest will experience with the connection.“ Problems may occur when “pure” VoIP-Service Providers are asking for interconnection.

6. Interconnection and Regulation of IP-Networks Ass. Sven Tschoepe, LL.M 65/5/04 Interconnection vs. Peering "Peering" is the settlement-free exchange of IP traffic between service providers operating IP Networks. Trend that peering agreements are even closed between IP- and PSTN-operators: - they allow for a more flexible interconnection of networks regardless of the defined points of access (“no relays no delays”) and - a better calculation of the future costs for IP- traffic.

7. Interconnection and Regulation of IP-Networks Ass. Sven Tschoepe, LL.M 75/5/04 Further regulatory aspects of IP-Networks Local Loop will remain a bottleneck-facility: Alternative infrastructure like broadband-cable (esp. in the US) or mobile networks (in Europe via UMTS) and WLAN is (still) not comparable. Incumbents may create a market entry barrier while offering broadband-access (via DSL), Internet Connectivity and VoIP-Services via their own subsidiaries as bundled retail services. Favored solution in the EU: Bitstream-Access, see Recommendation of the Commission of 11/2/2003 Access to co-location facilities, specific IP-Gateways

8. Interconnection and Regulation of IP-Networks Ass. Sven Tschoepe, LL.M 85/5/04 Obligation to ensure Network Security Some critics consider IP-Networks rather a concept than a infrastructure because they can be configured by their users or third parties. (RegTP) Clear definitions necessary: - What components are necessary to consider an IP-infrastructure as an IP-Network? - What is from a legal point of view necessary to run a network?

9. Interconnection and Regulation of IP-Networks Ass. Sven Tschoepe, LL.M 95/5/04 Regulatory discussion on VoIP-Services Generic name for the transport of voice traffic using Internet Protocol (IP) technology. The VoIP traffic can be carried on a private managed network or the public Internet or a combination of both. (Ofcom) US: VoIP Regulatory Freedom Act of July,22 2004 defines VoIP as a lightly regulated information service. EU: Under the new Regulatory Framework VoIP-Services offered to the public can either be regarded as electronic communications services (ECS), see Art. 2 (c) of the Framework Directive or public available telephony services (PATS), see Art. 2 (c) of the Universal Service Directive. Depending on the distinction a certain number of regulatory obligations are to fulfill by the VoIP service provider.

10. Interconnection and Regulation of IP-Networks Ass. Sven Tschoepe, LL.M 105/5/04 Thank you for your attention ! Sven Tschoepe, LL.M. Institute for Legal Informatics Königsworther Platz 1 30167 Hannover / Germany Tel: +49.(0)511.762.8166 E-Mail: sven.tschoepe@iri.uni-hannover.de