Traffic revenue

Traffic revenue

Grahame Lynch

IP may carry nearly 15% of international calls, but that means 85% still use the traditional method. The reason, says Reach vice president David Chalmers, is because mainstream operators across the world receive bilateral settlement payments on time division multiplex switched traffic, but not on IP circuit traffic. FCC and other regulatory pressures have reduced these revenues quite markedly in recent years, but Chalmers says this only provides operators with an incentive to hang on to what they’ve got.

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