Learn how to manage the implementation of lower termination rates and how to develop effective interconnect costing models for Next Generation Networks

1. 19th - 22nd September 2011
InterContinental Vienna, Austria
www.interconnectionevent.com
Sponsors:
COPYRIGHT Telecoms IQ 2011. Due to unforeseen circumstances the programme may
change and IQPC reserves the right to alter the venue and/or speakers.

2. Pre-Conference Workshop: Monday 19th September 2011
Registration and coffee will begin at 09.30. The workshop will take place between 10.00 and 16.00 with
appropriate breaks for lunch and refreshments.
Evaluating the pros and cons of different cost models and interconnection
arrangements and determining how to effectively calculate mobile termination
rates
Session 1: Evaluating different cost modelling approaches
This session will provide an overview of each of the costing methodologies available and the
different flavours and interpretations that are being adopted around the world. When would it
be most appropriate to use each of them?
• Fully Allocated Historic Costing
• Current Cost Accounting
• Long Run Incremental Costing
- LRIC +
- Pure LRIC
Session 2: Scrutinising Interconnection arrangements
This session will look at the different arrangements that can be used to manage the
commercial agreements for interconnection. What options are available and what are the
relative merits of each?
• Cost based charging
• Capacity based charging
• Value based charging
• Sender keeps all (bill and keep)
Session 3: The Mobile Termination Debate
This session will look at the two sides of the mobile termination debate: the arguments for
high termination rates and the arguments for low, or even zero, termination rates.
Session 4: Key issues to consider when determining Mobile Termination Rates
This session will look at the critical issues that need to be taken into consideration in MTR
determinations, including:
• Should all operators’ costs be modelled, or should it be based on a subset, or a single
hypothetical operator?
• Should network externality surcharges be added?
• How should changes in the rates be implemented?
These points will be illustrated by looking at recent activities within the UK that have led to
proposals from Ofcom to implement a new glide path for Mobile Termination Rates in the UK.
The approach is based on cost calculations using the Pure LRIC methodology.
Led by:
Leo Borwick, Senior Consultant, Interconnect Communications
&
Eric Tyson, Director Commercial Services, Interconnect Communications

3. Conference Day 1: Tuesday 20th September 2011
08.30 Registration and coffee
08.55 Welcome address
09.00 Opening remarks from the Chair
Followed by a speed networking session
09.20 Establishing how to develop a profitable cost model for interconnection
• Establishing whether existing cost models can be adapted or whether you need to
develop new ones for an NGN environment
• Determining how operators and regulators can effectively collaborate to develop
future interconnection and termination cost models
• Understanding how to ensure flexibility with cost models to incorporate new entrant
operators
• Quantifying and measuring the network costs associated with interconnection
• Determining how to identify voice and data traffic on the network when IP packets are
passing over multiple charging points:
- Understanding how to balance voice and data traffic
- Evaluating the pros and cons of charging by minute or by megabyte used
• Understanding who the interconnection costs should be billed to:
- Evaluating whether both the receiving and originating parties should be charged
- Determining whether Bill and Keep should be used in an NGN environment
Eric Tyson, Director Commercial Services, InterConnect Communications
09.50 Analysing the current interconnect regime in Germany and learning how
Telefónica O2 Germany have overcome the challenges associated with
integrating VoIP, TDM and Mobile Networks
• Examining and overcoming the interconnection challenges faced by Telefónica O2
• Germany when integrating VoIP, TDM and their Mobile network
• Analysing and minimising the impact of integrating a VoIP, TDM and Mobile Network
on:
- Traffic steering
- Traffic monitoring
- Billing
- Accounting
- IN systems
- Potential additional business models
• Analysing the interconnect rate regime in Germany:
- Examining the trade-off between infrastructure investment and interconnection rates
- Determining how to manage the impact of interconnect regulation on the incumbent
and other national market players
- Identifying the limitations of the regulatory regime in Germany
• Analysing the effect of reduced termination rates on mobile call volumes in Germany
Uwe Fortwängler, Senior Interconnect Manager, Telefónica O2 Germany
10.20 Analysing the localisation of interconnection points in the context of
Bill and Keep
• Identifying the architecture required to enable VoIP interconnection
• Analysing the cost drivers behind VoIP interconnection
• Understanding the divergence of economics for calling party and called party in
“calling party pays” and examining potential disputes
• Understanding how Bill and Keep affects the evaluation of these economics and
reconciles the different points of view
• Discussing whether the regulator should have a role in defining the number and
localisation of interconnect points in the case of Bill and Keep

4. • Analysing whether Bill and Keep can be a driver for each operator to optimise their
interconnection architecture and define customised architecture rather than a
standard one
Alain Maton, Engineer Counsellor, BIPT
For a sneak peak of Alain Maton’s session, download the Q&A at
www.interconnectionevent.com.
10.50 Morning refreshments
11.20 Understanding how IP Interconnection needs to evolve to enable QoS-based
services
• Examining Deutsche Telekom’s vision of delivering innovative services based on
quality enabled networks
• Understanding why there is a need to evolve the internet economy ecosystem
• Determining how modifications of the regulatory framework can impact innovation,
investment and overall economic welfare
Thomas Grob, Senior Expert Regulatory Strategy, Deutsche Telekom
For a sneak peak of Thomas Grob’s session, download the Q&A at
www.interconnectionevent.com.
11.50 Interconnect contracts, negotiation and disputes: understanding how to sustain
a good track record in business
• Optimising your interconnect negotiations based on contracts, track history and
working relationships
• Understanding how to carry out contract verification, validation and approval based
on company policies and practices
• Determining how to enhance and formalise your interconnect processes in order to
- Optimise data capture
- Minimise potential interconnect disputes
- Reduce interconnect costs
• Establishing how to effectively manage your interconnect contracts and dispute
lifecycles in order to preserve your revenues, retain a healthy relationship with your
customers and maintain a reputation in the industry for fairness and diligence
Mehdi Ahari, Business Consultant, Ascom
12.20 Interactive Panel Discussion: Debating and managing the challenges of using a
Bill and Keep (BAK) model for interconnect agreements
• What are the limitations of the BAK model:
- Can BAK be used for operators of different sizes?
- How can you ensure that the agreement is fair for all parties?
• How can you prevent the ‘waterbed effect’ when using the BAK model?
• How can you prevent any increase in the number of call back operators and the
opportunity for free termination?
• How can you measure interconnect QoS when using BAK?
- How can you ensure that the receiving party provides optimum QoS when they are
not receiving any money for carrying other operators’ traffic?
• How can you ensure that the receiving party does not prioritise its own traffic over the
traffic it is receiving and determining how to monitor this?
• How can you prevent an increase in spam calls when using BAK?
12.50 Lunch
13.50 Establishing how to model the costs of current and NGN fixed core network
technologies
• Understanding the differences in modelling difficulty: fixed versus mobile
• Determining how to take into account different types and scales of operator
• Understanding how to take terrain and country-specifics into account when modeling
costs:
- Recognising that links may need to cross rivers or mountains

5. • Determining how to calculate the cost when different link media are being used, for
example trench, undersea or wireless
• Analysing the costs of interconnections itself: NGN versus “traditional” SS7
• Understanding how to calculate your costs when different core platforms are being
deployed in different areas
• Understanding how new services, such as IPTV, can affect cost allocation methods
James Allen, Partner, Analysys Mason
14.20 Establishing how to calculate fair mobile termination rates
• Analysing the history of mobile termination rates
• Comparing and contrasting termination fees across Europe
• Determining how to allocate cost to data traffic when calculating MTRs
• Understanding what pure LRAIC means and determining whether it is fair
• Discussing whether and how Bill and Keep can be used instead of termination fees
Alexander Gratzer, Chief Co-Ordinator Interconnection & Wholesale, Orange Austria
14.50 Understanding how operators in the Democratic Republic of Congo have
implemented LRIC cost models and analysing the impact for Vodacom
• Analysing the telecoms market and regulation in the Democratic Republic of Congo
• Understanding how the NRA and operators collaborated to develop the LRIC cost
model:
- Analysing the results
• Understanding how the cost models have been implemented within Vodacom
• Determining the impact that LRIC cost models have had on:
- Mobile Termination Rates
- Taxes
- Off-net traffic
- QoS
- On-net traffic
- Coverage
- Inbound traffic
- Profitability
• Analysing the impact on the ratio between international inbound, MTR and retail
tariffs
• Identifying the limitations of the LRIC model:
- WACC determination
- Asymmetric coverage
- Lack of analytical accounting
• Understanding how and why the Universal Service Fund has been implemented
Thys Kazad, Regulatory & Interconnect Manager, Vodacom
15.20 Roundtable Discussion Session
Take advantage of this facilitated discussion session to share best practice and benchmark
your strategies in Interconnection. Delegates will have the opportunity to participate in two out
of three discussion sessions. At the end of each session, the facilitator for each group will
summarise the key findings before opening up the discussion to the floor.
Topic 1: How can I optimise interconnection between TDM and IP networks?
Topic 2: How should I measure and optimise QoS for NGN interconnection?
Topic 3: What are the challenges of using Bill and Keep for interconnection agreements?
16.30 Closing remarks from the Chair
16.40 End of conference day one

6. Conference Day 2: Wednesday 21st September 2011
08.30 Registration and coffee
09.00 Opening remarks from the Chair
09.10 Examining the regulation of termination rates across Europe, the Middle East and
Africa and determining how operators are managing the impact
• Understanding the effects that lower termination rates will have in different regions on
the:
- Incumbent
- Market entrants
- Market challengers
• Establishing how different operators are developing strategies to manage the impact
of lower termination rates
• Assessing how to manage the effects that lower termination rates are likely to have
on call traffic across:
- Mobile to mobile
- Mobile to fixed
- Fixed to mobile
- Fixed to fixed
• Predicting the future for termination rates
Nezih Dincbudak, Senior Manager of International Regulatory Affairs,
France Telecom-Orange
09.40 Discussing how regulators and operators can effectively work together to ensure
a smooth transition to lower termination rates
• Determining when regulators should implement new policies based on the EC
recommendations
• Understanding if and how regulators across different countries can collaborate to
ensure that termination rates are similar
• Establishing how regulators can find the optimal balance between protecting
consumers and encouraging network investment
• Determining how to develop and introduce a glide path approach to lowering
termination rates to minimise the impact on operators
• Understanding how regulators can encourage operators to invest in Next Generation
• Networks when it could eliminate termination rates completely
Massimo La Rovere, Head of Regulatory Affairs Unit, Wind
10.10 Understanding how to leverage lower termination rates to optimise the success
of new market entrants in a competitive market
• Analysing the impact of lower termination rates on competition:
• Understanding why low termination rates are critical for new entrants and market
challengers but fiercely resisted by incumbent mobile operators
• Establishing why high termination rates have contributed to the failure of so many
new entrant mobile operators
• Examining the experiences of the Hutchison 3G Group as a 3G new entrant in
• Western Europe
• Discussing how the UK telecoms regulator, Ofcom, has led European regulators in
recognising the impact of termination rates on competition and consumers
• Determining why termination rates are likely to fall to zero, with or without regulation
Mark Falcon, Head of Economic Regulation, Hutchison 3G
For a sneak peak of Mark Falcon’s session, download his podcast at
www.interconnectionevent.com.
10.40 Morning refreshments

7. 11.10 Assessing and overcoming the challenges of using asymmetric termination
rates for both national and international services
• Understanding if and how NRAs can work together to establish similar national
termination rates across Europe
• Determining whether asymmetric international rates are justified when operators are
providing the same service
• Analysing the effects of asymmetric roaming termination charges on the originating
operator and understanding how to minimise the impact:
- Determining whether to apply different termination rates to national and international
calls
• Understanding how to minimise the impact of asymmetric local termination rates on:
- Incumbent operators
- Market challengers
- New entrants
Aldis Ciekurs, Manager Domestic Carrier Business, Lattelecom
11.40 Understanding the challenges of implementing asymmetric termination rates and
determining how to minimise the impact
• Analysing the effects of asymmetric roaming termination charges on the originating
operator and determining how to minimise the impact:
- Determining whether to apply different termination rates for national and
international calls
• Understanding how to minimise the impact of asymmetric local termination rates on:
- Incumbent operators
- Market challengers
- New entrants
Ewa Rogowska, International Roaming & Interconnect Analysis Unit Manager, Plus
12.10 Analysing the business impact of the changing regulatory, technology and usage
environment
• Identifying key evolutions in the ecosystem
• Assessing the impact on operator cost structures and business models
• Case study: establishing how the allocation of network costs between voice and data
services can impact retail pricing
• Determining how to link strategic objectives with your cost modelling approaches
• Discussing strategies to address upcoming challenges
Laurent Zenou, Director, TERA Consultants
12.40 Lunch
13.40 Determining what factors will influence your termination revenues and
establishing how to modify your business model to manage them
In this session, the speaker will discuss the different conditions that affect termination
revenues and how to minimise the impact. Specifically, Telenor will talk about the following
three issues that may force mobile operators to change their current business models:
• Phasing out of asymmetric local termination rates
• Lowering of termination rates
• The introduction of mobile VoIP
Hilde Halvorsen, Senior Regulatory Advisor, Telenor Norway
14.10 Analysing and minimising the effects of lower termination rates on existing
operator business models
• Analysing the effect of lower termination rates on the amount of traffic generated and,
in turn, the investment required to deliver services
• Quantifying the effects of lower termination rates on Turkcell’s profitability and
revenue growth
• Understanding the regulator’s role and responsibility in managing termination rates:
- Transparency

8. - Market analysis
- Stakeholder views
• Assessing whether and how lower termination rates should be passed on to the
customer
- Analysing the AMPU and ARPU effect
• Discussing how lower termination rates can hinder growth in the industry and raise
the entry barriers, especially for MNVOs:
- Determining how MVNOs can overcome this
Dr. Tayfun Çataltepe, Chief Executive of Corporate Strategy, Regulations & Interoperator
Business, Turkcell
14.40 Afternoon Refreshments
15.10 Understanding how Telekom Slovenije are developing strategies to compensate
for reduced termination revenues and to increase customer ARPU
• Assessing whether and how lower termination rates should be passed on to the
customer
• Forecasting the effects that lowering prices will have on the amount of traffic
generated and, in turn, on the investment required to deliver services
• Determining whether to stop subsidising handsets for pay monthly customers to
replace the revenue no longer being generated by termination rates
• Evaluating different strategies for increasing customer ARPU to compensate for
reduced termination revenues:
- Introducing flat rate tariffs at higher prices
- Offering bundled services at higher prices
- Introducing longer customer contracts to prolong the customer lifetime
• Assessing whether to develop and sell your own applications as an alternative
revenue stream to recover the costs lost from lower termination rates
• Determining how to fund future network investment when termination rates have
previously contributed towards it
Tomaž Tomsic, Head of International Carrier Services, Telekom Slovenije
15.40 Examining and managing the impact of MTR regulation on the Turkish mobile
market and competition
• Analysing the Turkish mobile market and regulatory environment
• Discussing the history of MTR regulation in Turkey from early implementation to
recent interconnect regulation
• Understanding the impact of on-net/off-net differentiation on market structure and
competition
• Analysing the Turkish Regulator’s decision on balancing MTR and the on-net price of
the dominant operator
• Evaluating the impact of MTR regulation on the sector and consumers
• Assessing future solutions for regulating mobile termination rates
Ceyda Bursali, Regulatory Analysis Manager, AVEA
16.10 Closing remarks from the Chair
16.20 End of conference
COPYRIGHT Telecoms IQ 2011. Due to unforeseen circumstances the programme may change and
IQPC reserves the right to alter the venue and/or speakers.
Secure your place now:
Email: telecoms@iqpc.co.uk
Call: +44 (0) 20 7368 9737
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