North American Network Operators Group

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What's a termination

  • From: Sean Donelan
  • Date: Tue Jul 18 16:37:53 2000

On Mon, 17 July 2000, "Patrick W. Gilmore" wrote:
> The telco world is completely different.  *EVERY* call has an "origination" 
> and a "termination", and *EVERY* termination is *PAID*.

Every "telco" termination is paid.  However the telco's like to define
some terminations as other than a telco, so the telco doesn't pay to
terminate those calls.  For example, in the USA calls to and from cellular
carriers are charged access fees by the wireline carrier.  Telco's first
wanted to charge access fees for calls to ISPs, now they want a "Free-Ride"(tm)
to terminate calls without reciprocal compensation to places they don't want
to pay.

I think a big difference is in the telco world, telco's collect more
money for more call minutes they complete.  If the call isn't completed,
they don't get money.  So telco's have an incentive to complete (and bill)
as many call minutes as possible.

Much of the US Internet is still flat-rate, so ISPs collect the same amount
of money for most levels of service good or bad.  ISPs have an incentive
to deliver the least quality of service they can before losing customers.
Even if an ISP has a multi-day outage, they bill for the service unless
customers get so irate they may receive a token refund.  Even ISPs with
SLAs tend to make the refund procedure so cumbersome, they know its like
giving out coupons instead of lowering the price.  Only a small number of
customers will ever get through the process and collect.