IAA Newsletters

Euro-IX, the association of European Internet Exchange Points, expressed their concerns about the ‘Sending Party Network Pays’ model and its potential impact on IXPs. In a letter sent to the EU in early January 2023, Euro-IX opposed the ‘fair share’ argument that proposes Big Tech should pay network costs to telcos to help fund network maintenance and upkeep. 

This has been a complex issue that has continued to trouble policymakers and industry. Euro-IX recognised the need of some form of regulatory adjustment to address the issue of great network costs that operators face, but raised concerns about the SPNP model, including: 

• Increased costs of concluding interconnection agreements.
• Inhibiting networks’ choice to peer.
• Reduced interconnection density and quality of service for end users.
• Replacement of the current market-based model for interconnection with a highly regulated market wherein administrative rules rather than technical considerations become the primary determinant of interconnection decisions. 
• Accidental creation of new systemic weaknesses in critical infrastructure.  

Pointing to the recent case of South Korea, where mandatory termination charges have resulted in reduced service quality and security, Euro-IX warned that regulation as proposed by SPNP would ‘… be detrimental to the correct functioning of the Internet connectivity and peering market and distort competition therein’. 

As this continues to be a live debate, we will have to keep an eye out for developments in Europe to see how the policy landscape may change in Australia. 

You can read Euro-IX’s letter on our website.  

The ACMA announced changes to Australia’s Telecommunications Numbering Plan in December 2022, as per the Telecommunications Numbering Plan Variation 2022 (No. 1). The Variation intends to support the improvement of the allocation of phone numbers to reduce scam activities.

Substantive changes include:

• A new voluntary short-code 7226 (SCAM) for telecommunications providers to use to help consumers report scam calls and SMS that can be actioned directly to their provider.
• New powers for the ACMA to withdraw phone numbers that have been used for scams or other fraudulent activity.
• Smaller block-sizes of numbers (10,000) to be allocated to telecommunications providers from 17 April 2023 to assist competition and the efficient use of numbers in the industry.
• New number ranges in specified locations to cater for future demand.

The ACMA held its consultation on the Variation in late October 2022. You can read IAA’s response on our website. Of the variations, 3 are intended to be short-term measures to improve the framework prior to a more comprehensive review of the Plan, which will be conducted before the Plan expires in 2025.