1. QoS based pricing in IP Networks
V.K. Agarwal, Dy. Advisor
Telecom Regulatory Authority of India (TRAI)
7/11/2019
TRAI

2. Emerging Trends
Convergence of telecom, broadcasting and media sector is one of most significant phenomenon
Deployment of IP based networks by telecom operators primarily for reducing CAPEX and OPEX
New managed networks and technologies like MPLS are getting more popular
Burden of network management is being shifted to services providers from end users
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3. Emerging Trends (contd.)
Such networks are capable to provide guaranteed quality of service resulting in efficient use of available bandwidth and still have the very simple network architecture
Variety of services like virtual private networks, peer-to-peer file transfer, video conferencing etc. can be provided using such networks.
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4. Overview of Managed Networks
The recent trends suggest a shift from point-to-point connectivity to point-to-multipoint managed connectivity
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5. Services over Managed Networks
Some of the managed services being offered by service providers under different tariff packages are:
Secured IP services
Managed Data Network Services
Managed Internet Services
Transactional Routing services
Enterprise hosting service
VPN and VPN Tunnel service
Enhanced VPN service
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6. Benefits of Managed Networks
Higher network efficiencies and reduction in CAPEX and OPEX, as no need to have separate leased lines for Internet and normal data connectivity requirement at multiple locations.
Supports multiple QoS levels for voice, video and data traffic.
Enable high data intensive services to the enterprise and corporate users including IP-VPN, MPLS-VPN etc.
Better security, flexibility and scalability, simplicity, manageability and better traffic engineering
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7. Parameters for Managed Connectivity
Number and type of customers sites (Managed or Unmanaged)
Type of protocols being used and to be supported between customer’s edge router and the service provider’s router. ( Existing and future services)
Class of Services support required for different type of traffic to be carried over the network.
Internet connectivity, content filtering with conditional access list

8. Major Pricing Components of MPLS based networks
Local access
MPLS port charge: MPLS platform provides IP MPLS Ports capability of different speeds such as 56k to T1/E1, E-3, STM1/OC3, STM1/OC3, STM4 etc.
MPLS Class of Service charges

9. QoS: Prioritize by Traffic Type
Level 4: Real time (voice, interactive video)
Level 3: Business interactive ( Systems Network Architecture [SNA], SAP etc)
Level 2: Real time (streaming video, network management)
Level 1: Business LAN-to-LAN (Internet Web, IBM Lotus Workplace, Novell GroupWise, and others)
Level 0: Best-effort data (Simple Mail Transfer Protocol [SMTP], FTP, Internet Web, and others)

10. Overview of MPLS Class of Service

11. Pricing with different Class of Service
Single CoS Price
No CoS Surcharge
Class of Service Surcharge
Differentiated CoS Pricing
For each CoS, the provider meets specified criteria for latency, jitter, and packet loss etc.

12. Service Level Agreements
ITU Rec. M.3350 has defined Service Level Agreement as follows:
“A formal negotiated agreement between two parties. It is a contract that exists between the Service Provider (SP) and the Service Customer (SC). It is designed to create a common understanding about service, quality, priorities, responsibilities etc. SLAs can cover many aspects of the relationship between the SC and the SP, such as performance of services, customer care, billing, service provisioning, etc.”

13. Parameters incorporated in the SLAs
Access Installation time
Port connection and activation time
% packet losses
Round Trip Delay
Jitter
Site Availability per month
Maximum Time to Repair
Cumulative down time for contract period
Penalty/ Compensation for breach of SLA
In practice SLAs are not cost based while price prescribed through tariff order are generally cost based.
MPLS SLAs will require a broader range of service level metrics as compared to the solutions based on traditional technologies

14. Thank You
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