#CommActUpdate: The IP interconnection model has been a huge success

In the context of network interconnection, communications policymakers have the benefit of a real-world experiment with two very different approaches to interconnection, which have existed in parallel for decades.

One model is the proscriptive regulatory approach that governs traditional voice communications. The other is the IP interconnection model in which commercial negotiations have created a flexible, adaptable network ecosystem that has seen unprecedented innovation and investment. This voluntary, commercial interconnection model has been nothing short of a tremendous success.

In the IP interconnection model, each service provider negotiates an agreement with several other providers, the terms of which vary according to the networks’ needs. Because there are multiple paths (aside from direct interconnection) available for any one provider to reach another, there are no compulsory agreements and each party is assumed to receive equitable value from an agreement to connect. IP interconnection has allowed for innovation and flexibility in response to changes in end users’ demands.