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InterconnecT CABS CG - A Carrier Access Billing System. |
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Reciprocal Compensation
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Reciprocal CompensationReciprocal compensation is payment for the use of the local switching and local loop facilities in the provision of local telephone calls. Compensation becomes necessary when a provider of local service (the company that sends out a bill for that service) terminates a local call on the facilities of another provider in the same vicinity or Local Access Transport Area (LATA). The provider of the originating call is required to pay for the use of the facilities where the local call terminates. Sometimes the amount of benefit is the same for the caller and the called parties, in which case no money passes. To avoid losing revenue, carriers must know how much to bill other carriers who are, in turn, billing them. Intec Telecom Systems’ InterconnecT CABS CG™ can bill reciprocal compensation on terminating local minutes of use in the same manner as the program bills toll minutes of use. There are various methods of determining reciprocal compensation. Some rates are determined by tariff through a state regulatory body’s organized plan. Other methods include agreements between the parties involved. Such agreements (for example, an interconnection agreement) state the billing rates and the application of these rates. Frequently Asked Question: A: The difference is that reciprocal compensation is billed for termination of local calls to local carriers while CABs regulations cover the billing of long distance carriers.
Category 92 Records Processing
Intec Telecom Systems creates and distributes
Category 92 records for CLECs. We can collect the data, convert it, rate it,
bill it, and provide reports.
Contact us today
for more information.
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