SLA-controlled interconnection charging in next generation networks

Next generation network (NGN) should facilitate a single party to establish quality of service (QoS) enabled path between the two IP providers mutually interconnected by one or more transit providers. For that purpose, an end-to-end service level agreement (SLA) should be negotiated and maintained. In this article, we propose interconnection charging, which is controlled by the end-to-end SLA. Relationships between the required, offered, and actually achieved inter-provider QoS are quantified through the degrees of offering and provisioning, at both end-to-end and per-domain levels. Nominal retail price offered to end users and interconnection costs related with particular SLA are then corrected if needed, depending on the offered and provisioned QoS levels. We further propose five policies for interconnection charging and compare them under different QoS provisioning scenarios. Results of the analysis indicate that a properly selected SLA-controlled interconnection charging policy should encourage providers: (1) to offer services with different QoS levels; (2) to offer service that perfectly or most approximately matches the required QoS and (3) to achieve the contracted QoS level.