Barriers to International Internetworking

Barriers to International Internetworking
Historically, three barriers have slowed the development of international networks. The principle barrier has been the high cost of international communications. Another important factor has been the high cost of installing and maintaining the physical infrastructure, coupled with the limited capacity of such facilities. With the advent of optical transmission and the introduction of new technical innovations, however, capacity is increasing and hence costs can be amortized over an enlarged user base. The third reason has been the lack of competition. Until recently, most governments have exercised either direct or indirect control over national telecommunications as well as international links. While this is still the case in some parts of the world, deregulation has brought about a significant increase in some parts of the world; deregulation has brought about a significant increase in competition and opening of domestic markets to foreign companies [NAS93].
Neverthelesss, despite the growing availability of capacity, the cost differential between U.S. overseas services is not something that is likely to be resolved soon, although change seems inevitable. In almost every country telcos operate in a “contrived” economic system, that is, a system of cross – subsidization in which monies are collected to support a wide range of government goals. One of the goals in the United-states is “universal service,” or the provision of affordable telephone service for the greatest number of people. The swiss, and many other governments throughout western Europe, use monies collected from telecommunications services to subsidize postal and transportation services. Introducing competition into these countries does not appear in the best interests of these governments and, in fact, the telcos are discouraging anyone from building his own network employing leased lines. In short, two factors – possible loss of control and income - have made the telcos reluctant to enter into a market economy in which competition is encouraged.