Europeans may have to pay their incoming calls!!

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vaithy

In the zone
Hello!!

If the recent report commissioned by EU, is any indication, sweeping changes are already in the air..
As per the report, theyrecommends the abolition of termination fees, the proportion of call costs which is paid to the receiving network, on the grounds that the internet survives without them and the internet is going to be everything, anyway.
In Europe the termination fee is a proportion of the cost of a call which is passed on to the receiving network, to pay it for carrying the call. This is known as Caller Party Pays (CPP) as the person making the call pays for the whole call.
however the commission(WIK) argued, by using the Internet model communication,
"when you call someone using Skype you pay for your part of the connection, by eating into the usage cap on your broadband connection; and the person receiving the call does the same. You each pay for your part of the connection. Although that may be through a fixed monthly fee - the cost is still split evenly between you and the person you are calling".

However, EU at present doesn't ready to bite the bullet..The EU report stops short of recommending all termination fees be immediately abolished, though only because it will take time to implement and abolition is the stated aim.

the report is attached inPDF for further reference

with regards,
vaithy
 
BBThumbHealer

BBThumbHealer

BlackBerry Guru ! :)
In US , People have to pay for incoming from 10:00 AM To 10:00 PM ! :( and , after that from 10:00 PM To 6:00 AM in the morning , its totally free calling anywhere in the US ! Moreover , wen u go from one state to another , there r no roaming charges ~! :)
 
sachin_kothari

sachin_kothari

Ambassador of Buzz
Just 2 days ago i read in Times of India that Virgin Mobile, will be paying 10 paise per minute for incoming calls and hear i hear this :eek:
 
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vaithy

In the zone
From the user point it is very inconvenient..Since same model is applicable to India, and user may end with instead of paying for the calls that he made, he may have to pay for the calles that he received (which 90% of them from pvt credit Agents, insurance Agents and all such of sundries..

However the Telecos are facing difficult times for the payment of interconnect charges,and Termination fees..

Let me explain further,

When a customer of ' A' is making a call to another customer of 'B' and the bill is calculated Rs 2/- , the actual revenue of 'A' is Re.1/ rest of Re.1 will be payable to 'B' as termination charges,,Nothing wrong here.. but one hitch is, when service provider 'A' present his bill to his customer for Rs.2/ and the bill is not paid (customer absconded/left/died) then 'A' had to took double hit ..not only he lose the Re1/- but also he had to pay the other part of re.1 (which he has not received from the customer) to 'B".thus Telco 'A' may lose millions by the way of termination charges to 'B' (when he has not received the actual payment )
So, telco 'A' is advocating, he only charged upto POI and let the receiving party pay to his provider when he receive the services...Another point is, while he is charging rs.2/ after abolishing termination charges, he can able to reduce it to Re.1/ thus paving the way for the cheaper rate...
 
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