I 100% agree with you Alex.

Jay kordic
the horizon group
1-951-780-3131

On Dec 28, 2011, at 12:25 AM, Alex Balashov <[email protected]> wrote:

> 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/
> 
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