Long-distance calls are processed through the long-distance carrier’s network differently, based on whether or not the call type is outbound, inbound, or calling card. Because each call type uses different telephone company resources, the rates differ. When a carrier sets its rates, it has to consider the cost of access at the point of origination, the cost of transporting the call across long-distance lines, and the cost of access at the termination point. Figure 12.1 shows the different cost elements of a long-distance call.
Figure 1: The cost of a long-distance call has three parts: access on the point of origination, transport, and access at the point of termination. In Figure 1, Jerry in Dallas, Texas, pays $0.12 a minute to call Linda in Atlanta, Georgia. His long-distance carrier does not own the physical phone lines from Jerry’s house to Linda’s house; it only owns the lines connecting the central offices. Lacking an end-to-end network, it must pay access fees to the local carriers on both ends for the use of the line. Access fees are between $0.02 and $0.04 per minute. Long-distance carriers argued for years that the access fees paid to local carriers are inflated and should be reduced. In this example, Sprint pays $0.06 in access fees and keeps the remaining $0.06.
Outbound long distance
No comments:
Post a Comment