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   Telecom Billing Inter-Carrier Settlements

Inter-carrier settlements are the exchange of value between carriers that provide services to each other. Because hundreds of carriers may be providing services with each other, inter-carrier settlements are often provided on a wholesale basis between network operators based on prearranged agreements between the carriers. In the United States, inter-carrier settlements are enabled through the use of carrier access billing system (CABS) or independent clearing houses.

Inter-carrier settlements are becoming more complicated with deregulation. To encourage fair competition, some governments are requiring existing (incumbent) telecommunication companies to unbundled network elements (UNE). Unbundling is the process of separating portions of a telecommunication network that are owned or operated by a service provider. It is a common term used to describe the separation of standard telephone equipment and services to allow competing telephone service providers to gain fair access to parts of incumbent telephone company systems. An example of an unbundled service is for the incumbent phone company to lease access to the copper wire line that connects an end user to the local telephone company. The competing company may install high-speed data modems (such as ADSL) on the copper line to enhancing the value of the telecommunications service.

 

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   Telecom Billing Books

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