What Carrier Access Billing Pays For

The basic element of compensation is the local loop, the wire or connection to the user location.  This element can be very simple or very complicated depending on the service the user has purchased, the location of the customer, and the age of the facilities in that area.  Examples of complex services include point-to-point data transfer and radio circuits (studio to antenna).

The traffic is aggregated at the Central or End Office for switching.  These are some of the factors that comprise the service and therefore its costs:

• Switching and other functions provided by the end office
• Complexity, age and equipment available
• Transport from the end office to the tandem, central office or other switching point for handoff to the long distance company
• Functions provided by the tandem itself
• Variable length of haul from the end offices to the tandem switch
• Length of time the call occupies the route
• Charges for other functions provided by the local carrier prior to hand-off, such as 800 queries
• Elements of access specific to the particular call type, a specific location, or a specific route such as remote/host switching configuration.