The end of termination services?

In the ERG meeting in Switzerland earlier this month, the ERG advocated for the move towards BAK once NGN infrastructure is in place. According to the ERG press release,
"bill and keep is more promising that CPNP (calling party network pays) as a regulatory regime for termination for the long term".


Thus, the ERG is holding a Public Consultation on a Draft CP on NGN Charging Mechanisms/Long term termination issues. This approach is not novel: The ERG already published a consultation promotting Bill and Keep (BAK) for IP-interconnection which resulted in a common statement on a work program towards a common position.


From a legal point of view, it remains open whether BAK could actually be imposed under the current regulatory framework. From a practical viewpoint, it would be interesting to assess the consequences of imposing BAK in one country while CPP is applicable in others.

Responses should be sent to the ERG Secretariat by 10 December 2009.

It is noteworthy that the Commission recently launched a call for tender for a study on "the future of interconnection charging in Europe, the purpose of which is to "analyse the likely evolution as well as the impact of an introduction of "Bill and Keep", among other interconnection charging methods, on the migration process towards IP network interconnection, assuming a lowering of network termination fees in the medium term, and to identify any necessary regulatory requirements at national and European levels so as to avoid regulatory fragmentation and to ensure the appropriate level of co-ordination in regulatory intervention across the EU".