Intercarrier Compensation in Unilateral and Bilateral Arrangements

Abstract

In terms of intercarrier compensation traffic flows are measured to allocate the costs between networks. This method provides a poor basis for sharing any costs. In this work we analyze the benefits of the traffic differentiation on the interconnection charges in unilateral and bilateral arrangements. We determine an original initiator of a transmission and compensate differently for the distinguished traffic flows. The presented approach was compared with the existing solutions, which perform cost compensation based on the traffic flows.