Someday, the IP eXchange (IPX) just might be the world’s largest VoIP peering federation, as it starts with a potential base of the world’s GSM carriers, representing a billion phone numbers, or thereabouts.

 

At some point, interconnection agreements in the IP domain will have to replace interconnection methods now common in the TDM domain. Peering federations are one option carriers have for replacing the tandem switch interconnection regime now used by the public networks, as legacy TDM networks are deemphasized in favor of IP-based telecom networks.

 

Certainly, mobile service providers think the IPX will allow migration of a large volume of voice traffic from mobile networks to an IP format, saving them operating costs in the process. But the IPX won’t operate on the old Internet Service Provider settlement-free basis, and is not expected to be a vehicle for promoting settlement-free interconnection between carriers and service providers. Instead, the IPX aims to establish a new settlement mechanism adapted for the IP future, but reserving the basic framework of commercial relationships now common in the carrier world.

 

As a result, IPX is developing standards for commercial functions including secure billing across multiple networks and platforms, not simply the technical ability to pass features, signaling and bearer traffic through such an interconnect. Security measures to prevent Internet-based attacks, traffic segregation to prevent localized security breaches also are important, for this reason.

 

In some ways, though, it is the creation of a settlement regime featuring “cascading payments” that characterizes the IPX, for such payment agreements underpin today’s voice business model.