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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.
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.[ citation needed ] 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 company", "mobile network carrier", "network operator" or "telecommunications service provider".
Since the early years of mobile communications, the scientific community and regulatory authorities have made efforts to reduce or overcome the negative effects of the monopolistic regime introduced by call termination costs. However, the attempts have been limited to either implementing billing systems focused on the party that pays the call termination costs or on regulatory rules enforced on the MNOs. Thus, the "Calling party pays" (CPP) principle combined with the presence of a strong regulator, and the "Receiving party pays" (RPP) principle, are deemed to eliminate the negative effects of the monopolistic market for termination rates. [1]
Consider this scenario: "A" is the subscriber of an MNO by the name "MNO1". "A" intends to make a phone call to "B" who is a subscriber of "MNO2".
For the call to happen, the two MNOs need to be interconnected. Both MNOs charge their respective subscribers for their services. In this scenario, MNO1 provides the origination service and MNO2 terminates the call. MNO1 charges A based on the "calling rate". MNO2 charges MNO1 based on the " termination rate" (TR). MNO1 passes on the TR cost to A in full.
In contrast, under the RPP model, A pays MNO1 for origination services only, while B is charged by MNO2 for the termination service.
In both models, there is no alternative for terminating service. Therefore, the terminating MNO, specifically MNO2 in this instance, holds a monopoly over termination services according to the CPP principle. This allows MNO2 to potentially exploit the originating service provider, MNO1, by establishing monopolistic termination rates. This holds true for each call terminated under CPP, as long as a single network realises the termination. Consequently, there is always an incentive for terminating MNOs to set monopolistic termination rates, irrespective of the MNO that serves as the originating or terminating service. Moreover, termination costs are considered a part of the marginal cost of calls. So originating MNOs have an incentive to pass on high termination costs to their own subscribers. [2]
Caller identification is a telephone service, available in analog and digital telephone systems, including voice over IP (VoIP), that transmits a caller's telephone number to the called party's telephone equipment when the call is being set up. The caller ID service may include the transmission of a name associated with the calling telephone number, in a service called Calling Name Presentation (CNAM). The service was first defined in 1993 in International Telecommunication Union – Telecommunication Standardization Sector (ITU-T) Recommendation Q.731.3.
Telephone number mapping is a system of unifying the international telephone number system of the public switched telephone network with the Internet addressing and identification name spaces. Internationally, telephone numbers are systematically organized by the E.164 standard, while the Internet uses the Domain Name System (DNS) for linking domain names to IP addresses and other resource information. Telephone number mapping systems provide facilities to determine applicable Internet communications servers responsible for servicing a given telephone number using DNS queries.
A telephone call or telephone conversation, also known as a phone call or voice call, is a connection over a telephone network between the called party and the calling party. Telephone calls started in the late 19th century. As technology has improved, a majority of telephone calls are made over a cellular network through mobile phones or over the internet with Voice over IP. Telephone calls are typically used for real-time conversation between two or more parties, especially when the parties cannot meet in person.
A toll-free telephone number or freephone number is a telephone number that is billed for all arriving calls. For the calling party, a call to a toll-free number from a landline is free of charge. A toll-free number is identified by a dialing prefix similar to an area code. The specific service access varies by country.
A conference call is a telephone call in which someone talks to several people at the same time. The conference call may be designed to allow the called party to participate during the call or set up so that the called party merely listens into the call and cannot speak.
In telecommunications, directory assistance or directory inquiries is a phone service used to find out a specific telephone number and/or address of a residence, business, or government entity.
Phone fraud, or more generally communications fraud, is the use of telecommunications products or services with the intention of illegally acquiring money from, or failing to pay, a telecommunication company or its customers.
In the United Kingdom, telephone numbers are administered by the Office of Communications (Ofcom). For this purpose, Ofcom established a telephone numbering plan, known as the National Telephone Numbering Plan, which is the system for assigning telephone numbers to subscriber stations.
GSM services are a standard collection of applications and features available over the Global System for Mobile Communications (GSM) to mobile phone subscribers all over the world. The GSM standards are defined by the 3GPP collaboration and implemented in hardware and software by equipment manufacturers and mobile phone operators. The common standard makes it possible to use the same phones with different companies' services, or even roam into different countries. GSM is the world's most dominant mobile phone standard.
In telecommunications, a long-distance call (U.S.) or trunk call is a telephone call made to a location outside a defined local calling area. Long-distance calls are typically charged a higher billing rate than local calls. The term is not necessarily synonymous with placing calls to another telephone area code.
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 private branch exchange (PBX) systems. The feature provides service for multiple telephone numbers over one or more analog or digital physical circuits to the PBX, and transmits the dialed telephone number to the PBX so that a PBX extension is directly accessible for an outside caller, possibly by-passing an auto-attendant.
In voice telecommunications, least-cost routing (LCR) is the process of selecting the path of outbound communications traffic based on cost. Within a telecoms carrier, an LCR team might periodically choose between routes from several or even hundreds of carriers. This function might also be automated by a device or software program known as a least-cost router.
Call-through telecom companies are alternative telecommunications companies in Europe that provide services to make inexpensive international phone calls. All a user needs to do to take advantage of these savings is to dial the call-through access number followed by the destination number. Different phone companies specializes in a different types of international phone call deals, which means that the cheap long-distance call plan that works for one country won't necessarily work for another. Most call-through telecom companies charge different telephone call prices at different times of day for local and national calls while others offer really cheap international phone calls.
The termination rate is one of the three components in the cost of providing telephone service, and the one subject to the most variation.
Telephone companies in different countries use a variety of international telecoms routes to send traffic to each other. These can be legal routes or other arrangements the industry calls grey routes, special carrier arrangements, settlement by-pass and other euphemisms.
A non-geographic number is a type of telephone number that is not linked to any specific locality. Such numbers are an alternative to the traditional 'landline' numbers that are assigned geographically using a system of location-specific area codes. Non-geographic numbers are used for various reasons, from providing flexible routing of incoming phone calls to generating revenue for paid-for services.
Bill and keep, also known as net payment zero, is a pricing arrangement for the interconnection 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.
Toll-free telephone numbers in the North American Numbering Plan have the area code prefix 800, 833, 844, 855, 866, 877, and 888. Additionally, area codes 822, 880 through 887, and 889 are reserved for toll-free use in the future. 811 is excluded because it is a special dialing code in the group NXX for various other purposes.
A call detail record (CDR) is a data record produced by a telephone exchange or other telecommunications equipment that documents the details of a telephone call or other telecommunications transactions that passes through that facility or device. The record contains various attributes of the call, such as time, duration, completion status, source number, and destination number. It is the automated equivalent of the paper toll tickets that were written and timed by operators for long-distance calls in a manual telephone exchange.
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.