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Carrier-Grade
Billing
The
CABS Leader
Key
Features
Client/Server
Flexibility
Easy
Access to Info
Bill
Usage Verification
Easy
Implementation
System
Setup
Reports
Service
Bureau
Customers
Reciprocal
Compensation
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Is Carrier Access Billing An Equitable
Solution?
While CABS may be a complex model for Access or
Last Mile compensation, it defines all of the items necessary for call
completion and allocation of the costs to the specific element causing the cost.
The elements of billing need to be rated based on the type of unit and the
function performed. For example, transport should be based on the distance the
call travels, the switching based on the number of elements used and the number
of times the switching service is used. The length of time the call occupies the
equipment must be used in the equation because until that call ends, no other
call can use that bandwidth, circuit or function. The fact that some call types
have longer setup times or surcharges can also be addressed using the CABS
model. Factors can be applied by call type in situations where there are unknown
variables. In summary, the cost of the elements specific to the providing of
access to the Long Distance Carrier can be counted, and as a result assessed per
element, making it an equitable solution.
However, LDCs have complained that the cost of this network is too high. In 1984
the cost of access averaged about nine cents per minute. The Long Distance
Carriers claimed that this cost was not justified. The expenditure prohibited
them from lowering the cost of long distance to the end user, whose local
telephone service they claimed was subsidized by long distance revenue. They
also took the position that the cost of the Last Mile of service was imbedded
and paid for long ago.
The incumbent LECs, on the other hand, argued that the new services being
offered to the end-user necessitated update of the facilities. New, more robust
switches with higher capacity and the outside plant to support the growing
capabilities allowed the LDC to offer new and improved service, therefore
justifying the access costs. Without these facilities, some of the services
could not be offered to customers. Indeed, some areas of the US still cannot
offer new technology services.
Much equipment and resources are used carrying the local loop to the customer.
The trunks are paired off to individual users. Equipment such as routers,
pedestals, and loops to each building, house or customer premise is the weakest
link in the chain and requires constant attention. The provision of this loop of
course is the local service provider’s responsibility, but its costs need to
be shared by both the local company and the long distance provider in the way of
payment for use of services.
How CABS Came To Be
Why CABS is Necessary
What CABS Pays For
Is CABS an Equitable Solution?
Compensation Can Get Complicated
Is Access Billing Worth the Effort?
Interconnect – the model for inter-company settlements outside of the USA
ITU Settlements
Wireless Billing
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