Internet pricing and Voice over IP (VoIP). Dr Tim Kelly, ITU “Workshop on international settlement reform and the costing and pricing of telecom services”, Hanoi, 11-13 December 2000.
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Dr Tim Kelly, ITU
“Workshop on international settlement reform and the costing and pricing of telecom services”, Hanoi, 11-13 December 2000
Note: The views expressed in this presentation are those of the author and do not necessarily reflect the opinions of the ITU or its membership. Dr Tim Kelly can be contacted by e-mail at Tim.Kelly@itu.int.
Internet host density, Asia-Pacificper 10'000 inhabitantsCAGR (1993-99) = 91%
Source: ITU Internet Reports 2001: IP Telephony
Note: Ranked by total number of users.
Source: ITU “Asia-Pacific Telecommunication Indicators, 2000”.
Source: ITU, adapted from TeleGeography Inc. Global Backbone Database. Data valid for Sept. 1999.
International Private Lines
Source: FCC. Applies to US carriers only.
Asia-Pacific, comparative prices,In US$, based on 30 hours off-peak use per month
Source: ITU Asia-Pacific Telecommunication Indicators, 2001. Data valid for July 2000.
PTO = Public
PTOs A & Bsplit the cost ofthe int’l circuit
Pays settlement fees
For accounting rate traffic, a direct bilateral
relationship is established between the origin and
termination operators. Intermediate transit operators
are compensated from the accounting rate which is
usually split 50:50. PTO B retains net settlement.
ISP = Internet
PTO B pays the full cost ofthe int’l circuit
One-way (thick pipe)
Two-way (thin pipe)
For Internet Peering traffic, ISP B pays for
both halves of the International circuit(s) which are
used for peering with ISP A. ISP B also pays for traffic exchange.
ISP B may pay for the circuit directly, or in
conjunction with one or more PTOs.
the sovereign right of each State to regulate its telecommunication, as reflected in the Preamble to the Constitution,
a) the rapid growth of Internet and Internet protocol-based international services;
b) that international Internet connections remain subject to commercial agreements between the parties concerned; and
c) that continuing technical and economic developments require ongoing studies in this area,
that administrations/ROAs involved in the provision of international Internet connections negotiate and agree to bilateral commercial arrangements enabling direct international Internet connections that take into account the possible need for compensation between them for the value of elements such as traffic flow, number of routes, geographical coverage and cost of international transmission amongst others.
1999International outgoing traffic,Asia-Pacific, in million minutes
Source: ITU/TeleGeography Inc “Direction of Traffic Database.”
US to Hongkong SAR
US to India
Retail tariff: 22 US cents
Retail tariff: 132 US cents
Source: ITU/TeleGeography Inc.
Source: PSTN rate = WorldCom One; IP Telephony rates = deltathree,com PC-to-phone. Rates valid at September 2000.
Cumulative number of Dialpad users & call minutes
Since launch on 18 Oct. 1999
Registered users (million)
Call minutes (million)
Source: ITU, adapted from DialPad.com press releases.
Source: IDC.The influence of Voice over IP
As percentage of int'l
Source: ITU Internet Report 2001: IP Telephony