Interconnection is defined as the chance for
telecommunication providers to build bridges for full transparency to their
customers and an opportunity to know what the client needs. It provides
harmonization between network operators. With the expanse of competition
getting fiercer between telecommunications operators, interconnection is
expected and reviewed to be reassessed with emergence of different strategies
and business governance structures.
Despite the value and the weight given to interconnection
and its importance, it has been an issue in telecommunications for the last
decade. Surely, it is a focal point for tensions and interests conflicts and
complaints among operators. The problem in adherence and the demand to answer
on the appeal of the market is challenging.
Yet, there is no denying the impact of interconnection to
both providers and customers. Its importance includes:
• It
eliminates the need for a customer to subscribe to multiple networks in order
to be able to communicate with all other customers.
• Dominant
carriers can hinder or eliminate competition by delaying interconnection,
degrading the quality of interconnection, or charging high prices for
interconnection.
In some cities like Jakarta, Indonesia where mobile
carriers are too preoccupied to customer satisfaction, some providers sometimes
become too ensnarled to interconnection disputes and delink their network. Many
customers in these countries find it necessary to have a SIM card for each
mobile operator to ensure that they can reach customers on all networks during
the times of these interconnection disputes. This raises costs for customers
and decreases the rate of call completion, which costs customers time. The Big
Three operators, Indosat, Telkomsel and
XL Axiata provide
direct line for their subscribers to continue the steady stream of
interconnection. Other local operators such as Axis Capital Group, which is
also an affiliate of XL have also adapted the system.
International law requires operators to propose
interconnection that are nondiscriminatory and transparent. That proposal
requires the regulator’s approval. Transparency is important as the industry is
expanding its services and inclusions.
Global commerce, mobile subscription and data usage are
only some of the products of interconnection. As global commerce continues to
become integrated and paperless, efficient interconnection is important to
enable activities such as electronic banking, e-commerce, mobile roaming, and
e-mail. Efficient interconnection also facilitates the implementation of new
technologies as countries reap value from global connectivity and strive for
cost-saving technologies. Although the term interconnection and the term access
are often used interchangeably, many industry experts prefer to draw
distinctions between the two.
