Benchmarking International Leased Circuit (ILC)


Posted on August 27, 2010  /  0 Comments

We would like your comments and suggestions in helping us define a methodology for benchmarking ILC prices.

As part of our annual international voice and broadband price benchmarking reports (Indicators continued) we have decided to include ILC prices for selected countries within the region (Sri Lanka, India, Pakistan, Bangladesh, Thailand, Philippines and Indonesia). The first step was to compare available ILC benchmarking methodologies and use this comparison study as a base to create our own. The lack of freely available information on the same (Sources explored were OECD, ITU, APCC and TeleGeography), prompted us to define a methodology irrespective to what may be available elsewhere.

What we’d like to compare are leased line prices for given speeds (E1: 2Mbps, DS-3: 45 Mbps or STM-1: 155Mbps, where applicable) from the cities LIRNEasia works in, to cities around the world based on traffic flow – another data set that is not freely available.

When calculating the IPL cost we plan on adhering to the following:

– Non-recurring charges such as equipment and installation fees shall not be reported.
– Only annual full-circuit rental fees shall be included (in rare instances when prices are reported based on half circuits, a suitable multiplier will be used in order to benchmark against other full circuit prices)
– Local loop circuits will be excluded (because prices may vary based on within a city)
– Prices will be be reported in US$, excluding taxes

We would appreciate any information you may have on ILC methodologies, traffic flow data (especially to and from the countries below) and any other suggestions in defining the methodology. All comments will be valued.

Comments are closed.