Electronic and Postal Communications (Interconnection) G.N. No. 425 (contd) to reach the point or points of interconnection within the network of the interconnection provider. (3) Locations for points of interconnection shall include(a) mobile switching centers; (b) media gateways; (c) local exchanges; (d) tandem exchanges; and (e) any other technical or commercial feasible point. Interconnection costs 9.-(1) The allowed costs for the interconnection provision shall be computed basing on,but not limited to the following(a) forward-looking long run incremental costs; (b) the current costs of the modern equivalent technology; (c) the levels of the costs that would occur in a competitive and contestable market; and (d) the relevant and efficiently incurred costs that would promote effective competition. (2) The interconnecting parties shall be encouraged to use the economic forward-looking long run incremental costs method for promoting effective competition and reducing the interconnection charges. Interconnection charges 10. The interconnecting parties shall agree to set interconnection charges based on the following principles(a) objective, transparency and reflect underlying costs; (b) forward-looking long run incremental costs; (c) sufficiently unbundled to ensure that an operator requesting interconnection is not required to pay for network elements or facilities not strictly required for the service to be provided; and (d) compensation arrangement, which is reciprocal for the transportation and termination of traffic. 132

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