Calling Party Pays
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Calling Party Pays
Calling party pays (CPP) is a payment model in telephony, especially in cellular markets, that states that the total cost of a call is borne by the caller and not the receiver. It is also known as "Calling party network pays" or CPNP. Traditionally, two more models have existed: The receiving party pays (RPP) model, in which the caller pays for making the call and the receiver pays for receiving it. Bill and keep model. Components of cost In general, the total cost of each call placed by a subscriber of a mobile network operator (MNO) has two components - calling rate and call termination rate. The "calling rate", also called "call charge" is the amount charged by the caller’s MNO to the caller. The "call termination rate", or simply " termination rate", is the amount the receiver's MNO charges from the caller's MNO, in order to end the call in the receiver's network. A "mobile network operator" is also known as "wireless service provider", "wireless carrier", "cellular co ...
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Receiving Party Pays
Receiving Party Pays is a payment model set basically in the cellular market, that states that the payment for an incoming call is set on the receiver. That model differs from "Calling party pays" in which the caller is the one who pays for the other side receiving it. The total cost of each call placed by a subscriber of a Mobile Network Operator (MNO) is split in two parts. The first part is the amount that the caller's provider is charging in order to provide the service to the calling party. The second part is the mobile termination rates (MTRs) that the provider of the call-receiver demands to deliver a call. Concerning the MTRs, in some parts of North America and Asia the Receiving party pays (RPP) instead of the Calling party pays (CPP) principle is applied. In contrast to the CPP principle, in RPP the callee is asked to pay for the termination cost or in some cases to share a part of this cost with the caller. Initially this approach sounds fair, especially in the scope of ...
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Bill And Keep
Bill and keep (B&K or BAK), also known as net payment zero, is a pricing arrangement for the interconnection (direct or indirect) of two telecommunications networks under which the reciprocal call termination charge is zero. That is, each network agrees to terminate calls from the other network at no charge. Bill and keep represents an approach to interconnection charging in which networks recover their costs only from their own customers rather than from the sending network. Such an arrangement acts to remove the wholesale cost barrier to retail pricing for off-network calls and has been proven to result in significantly higher levels of calling activity. On October 27, 2011, the U.S. Federal Communications Commission announced that it would adopt a bill-and-keep framework for all telecommunications traffic exchanged with local exchange carriers as part of an effort to reduce arbitrage practices such as traffic pumping and phantom traffic, encourage the deployment of IP-based ne ...
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Mobile Network Operator
A mobile network operator (MNO), also known as a wireless service provider, wireless carrier, cellular company, or mobile network carrier, is a provider of wireless communications services that owns or controls all the elements necessary to sell and deliver services to an end user, including radio spectrum allocation, wireless network infrastructure, back haul infrastructure, billing, customer care, provisioning computer systems, and marketing and repair organizations. Operator In addition to obtaining revenue by offering retail services under its own brand, an MNO may also sell access to network services at wholesale rates to mobile virtual network operators (MVNO). A key defining characteristic of a mobile network operator is that an MNO must own or control access to a radio spectrum license from a regulatory or government entity. A second key defining characteristic of an MNO is that it must own or control the elements of the network infrastructure necessary to provide se ...
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Termination Rates
The termination rate is one of the three components in the cost of providing telephone service, and the one subject to the most variation. On every long-distance call in the United States, the customer pays for: * Origination (dial tone service): connecting the call from the originating customer's equipment to a telephone company central office or exchange). In the era of wired local telephone service (slowly coming to an end with the ubiquity of cell service, starting in the 2010s) this was usually provided by a single company in each locality. * The transportation of the signal (the call) to another telephone company office near the recipient of the call. * Termination, completing the call from the receiving company central office to the receiving subscriber's equipment. Historically, each of these steps could be carried out via a separate company, and the toll paid by the originating (or in some cases the receiving) caller would be split among the three providers. In the Uni ...
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Receiving Party Pays
Receiving Party Pays is a payment model set basically in the cellular market, that states that the payment for an incoming call is set on the receiver. That model differs from "Calling party pays" in which the caller is the one who pays for the other side receiving it. The total cost of each call placed by a subscriber of a Mobile Network Operator (MNO) is split in two parts. The first part is the amount that the caller's provider is charging in order to provide the service to the calling party. The second part is the mobile termination rates (MTRs) that the provider of the call-receiver demands to deliver a call. Concerning the MTRs, in some parts of North America and Asia the Receiving party pays (RPP) instead of the Calling party pays (CPP) principle is applied. In contrast to the CPP principle, in RPP the callee is asked to pay for the termination cost or in some cases to share a part of this cost with the caller. Initially this approach sounds fair, especially in the scope of ...
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Monopoly
A monopoly (from Greek language, Greek el, μόνος, mónos, single, alone, label=none and el, πωλεῖν, pōleîn, to sell, label=none), as described by Irving Fisher, is a market with the "absence of competition", creating a situation where a specific person or company, enterprise is the only supplier of a particular thing. This contrasts with a monopsony which relates to a single entity's control of a Market (economics), market to purchase a good or service, and with oligopoly and duopoly which consists of a few sellers dominating a market. Monopolies are thus characterized by a lack of economic Competition (economics), competition to produce the good (economics), good or Service (economics), service, a lack of viable substitute goods, and the possibility of a high monopoly price well above the seller's marginal cost that leads to a high monopoly profit. The verb ''monopolise'' or ''monopolize'' refers to the ''process'' by which a company gains the ability to raise ...
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Call Origination
Call origination, also known as voice origination, refers to the collecting of the calls initiated by a calling party on a telephone exchange of the PSTN, and handing off the calls to a VoIP endpoint or to another exchange or telephone company for completion to a called party. In the VoIP world, the opposite of call origination is call termination, where a call initiated as a VoIP call is terminated to the PSTN. The term is often used in referring to a VoIP trunking service that provides the ability for calls to originate on the PSTN and be delivered to a customer's VoIP endpoint. It is often referred to as "DID" (for Direct Inward Dialing Direct inward dialing (DID), also called direct dial-in (DDI) in Europe and Oceania, is a telecommunication service offered by telephone companies to subscribers who operate a private branch exchange (PBX) system. The feature provides service for ...) which more properly refers to a service entirely within the PSTN where individual PSTN number ...
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Termination Rates
The termination rate is one of the three components in the cost of providing telephone service, and the one subject to the most variation. On every long-distance call in the United States, the customer pays for: * Origination (dial tone service): connecting the call from the originating customer's equipment to a telephone company central office or exchange). In the era of wired local telephone service (slowly coming to an end with the ubiquity of cell service, starting in the 2010s) this was usually provided by a single company in each locality. * The transportation of the signal (the call) to another telephone company office near the recipient of the call. * Termination, completing the call from the receiving company central office to the receiving subscriber's equipment. Historically, each of these steps could be carried out via a separate company, and the toll paid by the originating (or in some cases the receiving) caller would be split among the three providers. In the Uni ...
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Marginal Cost
In economics, the marginal cost is the change in the total cost that arises when the quantity produced is incremented, the cost of producing additional quantity. In some contexts, it refers to an increment of one unit of output, and in others it refers to the rate of change of total cost as output is increased by an infinitesimal amount. As Figure 1 shows, the marginal cost is measured in dollars per unit, whereas total cost is in dollars, and the marginal cost is the slope of the total cost, the rate at which it increases with output. Marginal cost is different from average cost, which is the total cost divided by the number of units produced. At each level of production and time period being considered, marginal cost includes all costs that vary with the level of production, whereas costs that do not vary with production are fixed. For example, the marginal cost of producing an automobile will include the costs of labor and parts needed for the additional automobile but not the ...
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Telephony
Telephony ( ) is the field of technology involving the development, application, and deployment of telecommunication services for the purpose of electronic transmission of voice, fax, or data, between distant parties. The history of telephony is intimately linked to the invention and development of the telephone. Telephony is commonly referred to as the construction or operation of telephones and telephonic systems and as a system of telecommunications in which telephonic equipment is employed in the transmission of speech or other sound between points, with or without the use of wires. The term is also used frequently to refer to computer hardware, software, and computer network systems, that perform functions traditionally performed by telephone equipment. In this context the technology is specifically referred to as Internet telephony, or voice over Internet Protocol (VoIP). Overview The first telephones were connected directly in pairs. Each user had a separate telephone wired ...
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