| Business Model | Present Model Vs. ICN Model | Features | Benefits | Objectives |
The primary business of ICN is to provide and operate Interconnect Exchange
Services for the telecommunications operators in Nigeria. Our Company
has deployed Siemens EWSD Power Node [Version 16] as the Primary Interconnect
Exchange Switch in Lagos, Nigeria (NECOM House) and established 24 core
optic fibre cable links with PTO Room (Saka Tinubu, Lagos – where
most of the operators are currently interconnected) and Mtel (Odunlami,
Lagos). In addition, ICN
has installed INTEC Intermediate and Interconnect Software to ensure
complete and accurate billing of interconnect traffic.
ICN plans to consolidate its position by establishing additional ten (10)
Interconnect Exchanges in the heavy traffic switching centres in Nigeria
by October 2007. The Company believes that the establishment of national
interconnect exchanges in Nigeria will result in substantial and rapid development
of the telecommunications market through provision of adequate physical
interconnect facilities for operators, greatly improved interconnect settlement
and financial management due to a high degree of accuracy in interconnect
billing, outsourced interconnect settlement process, equitable and efficient
settlement through improved agreement design and management and minimal
exposure of interconnect revenues to inflation and devaluation. The
long-term effect of this will be to free resources for improvement of existing
telecommunications infrastructure by the operators and indirectly reduce
the cost of telephony to the subscribers.
Interconnection is one of the most serious problems emerging with the
increase in number of operators and open market conditions. With the
increasing number of operators in different services, the number of interconnect
links between operators is increasing in multiples and will be unmanageable
very soon. The service offered by ICN is built on the concept of an interconnect
exchange cum inter-carrier billing clearinghouse as a further step towards
creation of a modern and efficient telecommunication infrastructure.
In response to the incessant calls for the resolution of interconnection
problems of the ever growing Nigerian Telecom sector and as a follow up
to the International Telecommunication Union (ITU) proffered solution to
the Interconnection problem in Multi-Operator and Multi-Service scenario,
as it is presently in Nigeria, the Nigerian Communication Commission (NCC)
issued out licenses to companies to provide Interconnect Exchange Services
for the sector. ICN is one of the licensed companies and is taking the leading
role in this drive to fast track the growth of the Nigerian Telecom Industry.
ICN approach provides a solution to facilitate further competition and
is a catalyst as well as a launching pad for tele-density growth in the
multi-operator, multi-service scenario in the country. It also provides
the solution to a number of issues that are coming in the way of getting
best results from the investments being made in the telecom sector. It further
leads to many new value additions for the consumers at competitive tariffs.
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Features of the Present Interconnect Model:
- Reduction in call completion rates and consequent loss of
potential revenue.
- Loss of market share.
- Multiple and growing points of interconnection.
- Increasing Capital Expenditure (CAPEX) and Operating Expenditure
(OPEX).
- Complexity in Operation.
- Complexity in Network Architecture.
- Complexity in administrative and bureaucratic procedures for
settlement of usage charges
- Incessant reconciliation exercises.
- Inefficient uses of expensive interconnect resources.
- Delayed and limited ability to respond to requests for additional
interconnect capacity from both old and new partners.
Benefits of the ICN Interconnect Model
- Results in increased Revenue through increase in interconnect
call completion rates.
- Leads to growth in interconnect revenue through provision
of open access to all licensed Telecom Operators.
- Ensure complete, accurate and prompt settlement of all interconnect
usage charges.
- Result in more manageable number of Interconnect links, resulting
in increased network reliability and simplified network architecture
and operation.
- Lower CAPEX and OPEX going forward.
- Eliminate administrative and bureaucratic procedures in settlement
of usage charges.
- Lead to optimal utilization of the existing interconnect resources
and result in increased revenue that will significantly off-set
transit cost (consolidation will lead to ability to carry 50%
more interconnect traffic with the same resources).
- Support nationwide roll-out of operators’ networks by
using nationwide co-location facilities of the Clearinghouse.
-
Facilitate growth of the telecom’s subscriber base by the
re-deployment of interconnect links freed as a result of consolidation
through the Clearinghouse for network expansion.
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- Interconnect exchange is connected to each operator at point of
interconnection through a duplicated link.
- Uniform terms of interconnect are achieved with all operators
connected to one clearinghouse.
- Interconnect exchange is versatile enough to accommodate all types
of interconnect links [circuit switching and packet switching] as
per licensing and regulatory requirements.
- Clearinghouse ensures prompt and accurate settlement of all bills
between operators.
- In a scenario with 16 operators in a point of interconnect area,
the number of interconnect links is reduced to as little as 16 from
a staggering number of 240 links needed based on the present interconnect
architecture.
- Optimization of number of interconnect links.
- Simplicity of operation.
- Simple, cost effective and reliable points of interconnection.
- Network simplification.
- Efficient handling of new and traditional interconnects.
- Equality in terms of interconnect.
- Savings in interconnection capacity requirements ranging from
18% to 80%.
- Provide a technical interconnection infrastructure that can
accelerate growth in multi-operator multi-service scenario with
minimum requirements for upgrade or additional costs in the
existing switching networks of the operators.
- One stop shop for all Value Added Service Operators (VAS)
In developing our solution, we identified the following primary
objectives:
- The provision of adequate Interconnect Capacity to all operators
in the industry as and where needed.
- Ensure complete, accurate and timely settlement of all Interconnect
usage charges.
- Facilitate industry growth through provision of open
access to all licensed telecom operators
- Optimize the use of expensive interconnect resources; resulting
in lower service cost for the operator and consequently lower
tariff for the consumer.
In actualizing our license we have put in place state of the
art facilities, and spent considerable time and resources to put
in place the technology, business processes, and operational procedures
for ensuring the attainment of the above business objectives.
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