Proposal for ICT and Internet Ecosystem

[Cheolhong Park <cheolhong.park@xxx>]

Proposal for ICT and Internet Ecosystem:

Setting New Rules on Trade Order

 

Abstract

Need for reasonable management on massive/high-frequency traffic, for example by introducing mobile standards in order to promote sustainable development and virtuous cyclic of innovation

 

For fair usage of limited resources of fixed/mobile network, service providers who profits by using traffic need to pay their dues.

 

Background

 

1- Advancement in Internet Ecosystem

There is a growing need to squarely face the changing ICT and Internet ecosystem and to explore ways to improve total ICT ecosystem (C-P-N-D; Contents-Platform-Network-Device).

 

2- Changing Trend

Changing paradigm in Internet usage pattern from web/text based to video consumption led to sudden spike in video traffic and number of heavy users

 

According to Cisco, video is expected to consume 91% of the global traffic by 2014. Multimedia traffic becomes more dominant in both fixed and mobile, accounting for around 70% and 53% respectively.

 

The growth in mobile traffic is much faster than the increase in the number of subscription. In fixed service, the subscription increased only about 25% for the past 6 years from 6.28million to 7.82 million, meanwhile the traffic increased by 550% from 380Gbps to 2,090Gbps. Situation is even worse with the mobile service. The subscription increase is minimal compared to the 2009 level (annual growth of 5%), but the traffic increased by 153 folds due to the introduction of flat rate.

 

In the fixed service, 5% of all users account for 55% of all traffic while in mobile 5% consumes 50% of total traffic causing inconvenience for many other users.

 

Increase in ‘Over-the-Top (OTT)’ service providers, who utilize the network without sharing the burden of investment, deteriorates the profitability of carriers.

 

3-‘Beneficiary/Traffic Generator Pays’ Principle

Service providers who profit through using the fixed/mobile network and in the process generate huge traffic, should bear their fair share of the cost.

 

Service providers who generate traffic on the network (Traffic Generator Pays Principle) or those who engage in profit business using the network (Beneficiary Pays Principle) should pay the due compensation for their network usage.

 

Only such improvement in the trade order can prevent the tragedy of the commons and promote advancement in the ICT ecosystem and its virtuous cycle.

 

 

Discussion

 

1- Reasonable Management of Massive /High-Frequency Traffic

Reasonable and transparent traffic management is in order to control massive and high-frequency traffic.

① (Massive Traffic) Network traffic requires reasonable management when it is suspected that massive traffic from, for example, P2P and smart TV cause serious network congestion.

② (High-Frequency Traffic) Out of concerns for a possible blackout from high-frequency traffic including signaling, reasonable network management may also be necessary.

 

2-Standardization of Mobile Traffic

Traffic standard may be necessary to establish an order in massive mobile traffic so that majority of users can enjoy quality Internet access.

 

Standardization should be encouraged to prevent social cost from incurring in the mobile environment. As mobile network has limited resources, contents with excessive bandwidth may require significant increase in network cost.

 

There is a need to reflect on a certain level of traffic trade order considering the network and contents conditions.

 

3-Managed Service Encouraged

By actively developing premium services of enhanced QoS, different service levels based on values of traffic can be made available.

 

Appropriate QoS and pricing policy will lay the foundation for differential services for different values of network and traffic. Such services can be provided through commercial contracts with providers.

 

4-Win-Win Model for ICT Ecosystem

All the interested parties are encouraged to promote virtuous development in the ICT ecosystem by exploring a mutually beneficial model.

 

5-Win-Win Structure for ICT Industry

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Proposals

It is proposed that the following provisions need to be add or modified to the current ITRs.

 

 

Article 2

Definitions

ADD

27A       2.11 The “Beneficiary/Traffic Generator Pays” Principle: This principle means service providers who engage in a profit business using the network or those who generate heavy or frequent traffic on the network shall pay due consideration for their network usage.

 

ADD

27B       2.12 QoS (Quality of Service) based delivery service and best effort delivery service: QoS based delivery service means the data transmission service through the internet network which guarantees quality of service by commercial agreements between OA and users; Best effort delivery service means the general data transmission service without the guarantee of quality of service.

 

Article 3

International Network

 

ADD

28A       3.1A In light of the recent innovative service launched based on network, Member State and OA shall endeavor to grow a ICT ecosystem through a virtuous cycle by creating an environment that would promote continuous investment for a network for a sustainable ICT ecosystem .

 

ADD

28B       3.1B OA will be entitled to manage and control heavy or frequent traffic which would induce congestion in the network to the reasonable extent, for the purpose of establishment, operation and maintenance of the quality assured international network

 

MOD

31         3.4 Subject to national law, any user, by having access to the international network established by an administration*, has the right to send traffic, to the extent that such traffic does not cause harm to the network stability. A satisfactory quality of service should be maintained to the greatest extent practicable, corresponding to relevant CCITT ITU Recommendations.

 

ADD

Article 4A Internet Traffic Management

 

ADD

38A       4A.1 . To ensure the efficient distribution of the wire and wireless network as limited resources and use of the network by users in a fair and rational manner, Member State shall make voluntary efforts and implement a proactive policy.

 

ADD

38B       4A.2 For an efficient and stable operation of the wire and wireless internet network, OA may, by utilizing international standard methods, establish the specifications and the method for traffic transmitted through a network. Further, OA may manage traffic based on the specific type and structure of the wire and wireless network, characteristics of the traffic such as bulk volume/high frequency, and technical characteristics such as limitations of frequency resources.

 

ADD

38C       4A.3 Member State shall endeavor to create an environment that would enable OA to promote the provision of QoS based delivery service. Administrations or OA shall provide best effort delivery service, even though they provide QoS based delivery service.

 

ADD

38D       4A.4 In accordance with the “Beneficiary/Traffic Generator Pays” principle, OA may demand due consideration from a business operator generating traffic in the international wire and wireless network by entering into a commercial agreement with such business operator.

 

ADD

38E       4A.5 OA may provide users with differentiated QoS based service in accordance with the terms of the commercial agreements with users.

 

Article 6

Charging and Accounting

 

ADD

45A       6.1A Pricing for QoS based delivery service

45B       6.1A.1 The pricing of QoS based delivery service depends on the terms of the commercial agreements between OA and users in principle. Pricing for QoS based delivery service in such commercial agreements will be determined on the basis of [the quality of the provided network, volume and frequency of the transmitted traffic through the internet network].

 

 

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