The peering capability is potentially important because it represents a chance to create new revenue and business relationships between carriers using the exchanges.
Some think that "peering" necessarily means "settlement-free" peering, but that is not always the case. For tier-one carriers, peering replaces the existing interconnection methods and possibly could enable new business relationships.
Among the obvious potential changes are "settlement-free" arrangements between some carriers with equivalent originating and terminating traffic, as well as "transit" style arrangements for carriers with smaller amounts of terminating traffic.
The SIP exchanges would enable high-definition and multimedia services as well. Aside from new revenue opportunities created by the ability to interconnect end-to-end IP services, the exchanges should reduce the costs of interconnection.
The SIP exchanges would enable high-definition and multimedia services as well. Aside from new revenue opportunities created by the ability to interconnect end-to-end IP services, the exchanges should reduce the costs of interconnection.
Smaller carriers will note the use of an "IP" interconnection business model. Big carriers will peer, possibly on a settlement-free basis, while smaller carriers might pay the equivalent of IP transit fees to interconnect.
