(keitai-l) Re: GPRS content question -- please help!

From: Tony Chan <tonyc_at_telecomasia.net>
Date: 07/03/01
Message-ID: <3B4192FB.E5300F1E@telecomasia.net>
> 
> I don't understand why "international" access should be noticably more
> expensive
> than "local" access, if the user is accessing the Internet. If it is a
> handful of users, than
> the bandwidth should be neglible. If it is traffic for keitai, then the
> amount of data
> is going to be a lot smaller than typically seen with desktop browsers, so
> it must
> be the case that getting a dedicated line for Internet traffic is
> terrifically expensive
> in Hong Kong? Is this high price reflected in the price for home users to get
> a subscription to an ISP for Internet access?
>   It seems like a big telecom carrier could get Internet service cheaper than
> anyone else.

The simple answer is that getting a line for domestic traffic, say
between DoCoMo's gateway in Tokyo to one of the Japanese Internet
exchanges, presumably there is one in Tokyo, is and should be cheaper
than getting a link to Taiwan (as the previous example), merely based on
the distance of that line. As far as I know, international leased
circuits are several (tens) times more expensive than local lines
(ironically, Japan is an exception because of NTT's near monopoly over
the local market, which has resulted in local leased line prices that
rival international circuits).

Basically, the cost structure goes like this:

Local access 			DoCoMo - line - Internet exchange
International access 		DoCoMo - line - international gateway - line -
overseas network

To provide local content, DoCoMo just needs the local access segment. In
order to provide international access as part of imode, DoCoMo needs both.

The long answer is that to offer unrestricted access to the Internet, an
ISP must have peering relationships with ever other ISP in the world.
For local access, this is done at the local Internet exchange. For
international access however, an ISP must develop peering relationships
with global ISPs. Most Asian ISPs do this by buying a leased line to the
US, or piggyback on Internet connectivity wholesalers like the IIJ in
Japan, and peer with a big US-based Internet exchange which offer have
peering deals with other global networks. The fact that most Asian ISPs
have to pay for the trans-Pacific link to connect to the US, and the
fact that they have to pay to peer with US Internet exchanges is an
ongoing trade dispute between Asia economies and the US within APEC, but
that's another story.

The example of the imode user accessing a Taiwan site can be implemented
two ways. The first, DoCoMo connects directly with the network of the
site's network and establishes a peering relationship with that
network's operator. This deal itself have two options - one which DoCoMo
users can only access sites on that particular netowrk and one that
allows DoCoMo to access all the peering partners of that network. The
other implementation would have DoCoMo link up with one of the big US
Internet exchanges, which have a peering relationship with the Taiwanese
network, hence can provide access to the sites on that network - this
however, requires DoCoMo to set up a link to the US. 

The two examples push traffic in two different directions. The first
example sees the traffic go directly from DoCoMo's network to the Taiwan
network. The latter would see traffic go to the US first then routed to
Taiwan and then back. Either way, DoCoMo has to pay for the
international link to connect overseas and often pay to peer with the
network it is trying to access, unless it has something to offer in
return. Theorectically, peering relationships work on an equal exchange
basis. Between ISPs, this is often calculated by the number of peering
relationships, the content hosted on the network, and ultimately the
number of subscribers connected to that network. Whether or not DoCoMo
has a proposition to offer for overseas ISPs is another interesting
question, but so far, I suspect, DoCoMo has to pay for its international
bandwidth, even if it gets it from its sister company NTT
Communications. This is more overhead for DoCoMo, hence economically
less viable than supplying just domestic access, and probably generating
only marginal benefits since, here I'm guessing, that content on the
conventional Web doesn't show up well on a keitei.

As to the situation in Hong Kong, it doesn't mean ISP services are
expensive in Hong Kong. In fact most ISPs offer unlimited dial-up at
less than US$15 a month. Unlimited broadband ADSL is about US$40 a
month. Then again, none of the ISPs can be said to be rolling in the cash.

A bit long winded, but it's an esoteric topic.


> 
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Received on Tue Jul 3 12:30:55 2001