Article #11

I would like to share the article about 911 service capabilities with class.
This article introduce how VOIP can help 911 service capabilities.

Please enjoy it.

Article Name: "911 Service Capabilities"
Article Location: http://www.vel.net/Business-VoIP-phone-system.cfm

Article #10

I would like to share the article about unfair charges for international Internet interconnection with the class.

Enjoy it.

Name of the Article: "The International Internet Interconnection Issue"

Location of the Article: http://www.isoc.org/oti/articles/1000/vanbeelen.html

MEMO #13

(International Internet Issues)

Today, there are neither established nor uniform rules which decide how the costs of providing Internet access and Internet content services are allocated among the Internet service providers (ISPs) of the world. This situation stimulates unfair charges for international Internet interconnection issue.

For example, most of the non-American ISPs, such as the Asia-Pacific ISPs, pay the full cost of the leased lines connecting their counties to a U.S. international gateway, together with port charges to connect to a U.S. Internet backbone because the Internet started in the US [1]. This means non-U.S. ISPs have to invest more in order to receive the same benefit of global Internet connectivity as U.S. ISPs. Under this situation, unavoidably, inequitable cost allocation occurs. Asia-Pacific ISPs pay for and receive the benefit of connectivity to the U.S., while U.S. ISPs receive the benefit of connectivity to the Asia-Pacific region without paying for it [2]. In addition, this inequitable cost allocation is applied to most international destinations. Now, most of non-American ISPs complain that U.S. ISPs use the investment of ISPs in other countries, and the U.S. gets a net financial benefit that is not equivalent to the amount of service it provides in return [3].

Of course, U.S. ISPs argue that due to the nature of the technology, it is hard or even impossible to determine the direction and the volume of the traffic [4]. In addition, U.S. ISPs also argue that due to this uncertainty and to the fact that so many parties benefit from Internet traffic, it is very difficult to ascertain the cost that traffic would incur given that the determination of price for Internet traffic is so different from that of voice telephony [5].

In summary, although non-American ISPs partially agree with the U.S. ISPs’ view, they think that the direction and quantum of traffic flow are not necessarily the direction and quantum of commercial benefit. The main reason why the non-American ISPs’s view differs from the U.S. is that non-American ISPs have a pressing commercial incentive to address this issue [6]. This issue can be considered an International trade issue, so I think that the World Trade Organization should consider it.

Reference

[1] e-OTI. “The International Internet Interconnection Issue” by Jane Van Beelen and John Rolland. [Last checked April. 21, 2007] http://www.isoc.org/oti/articles/1000/vanbeelen.html

[2] e-OTI. “The International Internet Interconnection Issue” by Jane Van Beelen and John Rolland. [Last checked April. 21, 2007] http://www.isoc.org/oti/articles/1000/vanbeelen.html

[3] e-OTI. “The International Internet Interconnection Issue” by Jane Van Beelen and John Rolland. [Last checked April. 21, 2007] http://www.isoc.org/oti/articles/1000/vanbeelen.html

[4] e-OTI. “The International Internet Interconnection Issue” by Jane Van Beelen and John Rolland. [Last checked April. 21, 2007] http://www.isoc.org/oti/articles/1000/vanbeelen.html

[5] e-OTI. “The International Internet Interconnection Issue” by Jane Van Beelen and John Rolland. [Last checked April. 21, 2007] http://www.isoc.org/oti/articles/1000/vanbeelen.html

[6] e-OTI. “The International Internet Interconnection Issue” by Jane Van Beelen and John Rolland. [Last checked April. 21, 2007] http://www.isoc.org/oti/articles/1000/vanbeelen.html

Article 9 (Economic development issue)

Hello, class.

I would like to share the article relating to a sustainable economic development issue.

The title of article is "Information and Communication Technologies, Markets, and Economic Development."

Location: http://www.cid.harvard.edu/cr/pdf/gitrr2002_ch07.pdf

Article #8

Hello, class.

I would like to share the article relating to telecommunication antitrust issue with class.

The title of article is "Don't Let Telecom Competition Vanish." This article is about the negative effect of monopolization of the telecom market.

Enjoy it.

Article Location: http://www.businessweek.com/magazine/content/01_17/b3729152.htm

MEMO #11

(France Telecom broke Antitrust Rules)

In 2003, the European Commission first pointed out France Telecom’s breach of antitrust rules relating to the high-speed Internet market. In addition, once again, Europe’s second-highest court ruled this past January, upholding a 2003 European Commission decision. The court decided that France Telecom kept its competitors out of the high-speed Internet market illegally by charging artificially low prices. According to ZDNet.com, the Court of First Instance imposed a 13.37 million dollar fine to France Telecom, which is the partially state-owned incumbent telecommunications operator. The court said that a too low service price can be considered as unfair economic activity.

More precisely, the court said some of France Telecom’s units, such as Wanadoo, charged consumers rates for high-speed network access that did not cover the costs, elbowing out rivals who could not compete at such prices. In a statement, the court explained that this type of France Telecom’s activity was an obvious breach of antitrust rules because it is part of a plan to pre-empt the market during a key phase in its development. Truly, France Telecom tried to recover losses on the sale of the service by making considerable profits on the prices it charged Wanadoo’s rivals for access to the network. In fact, Wanadoo’s predatory pricing ran from March 2001, when mass marketing of ADSL services started, to October 2002, when France Telecom cut its service prices by more than 30 percent.

Based on this situation, the European Commission and Europe’s second-highest court decided that France Telecom obviously broke antitrust rules in the high-speed Internet market.

Reference

1. ZDNet.com. (2007). “EU: France Telecom broke Antitrust Rules.” Retrieved online on March 24, 2007, from http://news.zdnet.com/2100-1035_22-6154576.html