On 12/27/2011 11:34 PM, Jake Hansen wrote:
Does anyone know how they sell US termination for 0.004 in a lot of cases? One would presume they are getting it cheaper and making a profit on it...
As Jay pointed out, wholesale termination in non-trivial volume is cheaper than that to a lot of destinations.
However, the variation is considerable, and I wouldn't necessarily assume they're making a profit. In wholesale, it's common practice to reject calls to certain especially high-cost destinations, even if the provider claims 100% completion. In retail, they usually just make a bet that most of your calls will be to cheap destinations, and take the hit if they're wrong.
In all cases, the goal is to win your traffic, whether you're LCRing it or manually evaluating costs.
Personally, I think selling US termination at 0.004 blended, across the board is suicide. There are certain types of destinations (mainly RBOC, some wireless) that are highly profitable sold at 0.004, and there are also many others that would bleed you dry. It's possible that this type of thinking - predatory pricing - is the key to why they went out of business.
-- Alex Balashov - Principal Evariste Systems LLC 260 Peachtree Street NW Suite 2200 Atlanta, GA 30303 Tel: +1-678-954-0670 Fax: +1-404-961-1892 Web: http://www.evaristesys.com/ -- _____________________________________________________________________ -- Bandwidth and Colocation Provided by http://www.api-digital.com -- asterisk-biz mailing list To UNSUBSCRIBE or update options visit: http://lists.digium.com/mailman/listinfo/asterisk-biz
