ICT service providers need access to networks owned by others in order to provide services to their customers. Without interconnection, a customer cannot call subscribers on other networks, access Internet content located on another network, and so on.
Networks interconnect with each other for a number of reasons:
- To provide a service that is not economically feasible without interconnection, for example calls to customers on another operator’s network
- To increase profitability. Where interconnection increases the value of telecommunications services, or the range of services operators can provide, it can be in the mutual interest of the operators to interconnect
- To expand or improve services that are valuable to customers.
Interconnection has been important for telecommunications providers since the invention of the telephone. Even before competition emerged, adjacent carriers interconnected with each so that their customers could make long distance and international calls.
With recent technological developments the range of services that depend on interconnection has increased. Interconnection is an essential input to local, long distance and international fixed voice calls, mobile voice and data services, satellite services, Internet access, e-mail and message services, broadband data transmission, and a wide range of multi-media services.
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