Definition[]
Intercarrier compensation refers to
“ | the charges that one carrier pays to another carrier to originate, transport, and/or terminate telecommunications traffic.[1] | ” |
Overview[]
Although the same or similar facilities are used to originate, terminate and transport all types of traffic, the rates for intercarrier compensation vary based on several factors:
- Where the call begins and ends (whether the call is local or long distance, and whether it is interstate or intrastate)
- What types of carriers are involved (incumbent local carriers, competitive local carriers, long distance providers, wireless carriers)
- What type of traffic (wireline voice calls, wireless calls, data bound for an Internet service provider).
Intercarrier compensation payments are governed by a complex system of federal and state rules. There are two major forms of intercarrier compensation — access charges and reciprocal compensation.
References[]
- ↑ Federal Communications Commission, Intercarrier Compensation (full-text).
Source[]
- Federal Communications Commission, Intercarrier Compensation (full-text).