MTC and IUC

As I said in my previous posts, here is a brief description of MTC and IUC:

MTC or Mobile termination charges are the charges which one to operator charges to another for terminating calls on its network.
The 3 models of charging this charge are: calling party pays (CPP), bill and keep (BAK, peering, zero charge), receiving party pays (RPP)
For eg., a customer of Operator A (OA) calls another customer of Operator B (OB).  OA will charge the customer a fee per minute (the retail charge) for this call. OB will charge OA a fee for terminating the call on its network or for using its network. This termination rate therefore forms part of OA’s cost of providing the call to its customer.
Termination rates may be commercially negotiated or may be regulated.

IUC or Inter usage charges is one of the most important payouts for any operator. MTC is a part of it. IUC are the charges paid by one operator to another for using its network in any form. It can involve a linking up of one telecom operator to the infrastructure facilities of another. Interconnections can be considered in terms of network interconnection and access interconnection. The former takes place between operators possessing networks, and the latter between an operator with a network and another without one.
Interconnection is crucial for communicating across networks, and makes it possible for the subscribers of two different operators to communicate with each other. It is essential for extending the scope and efficiency of the telecom network, and is especially important for new operators entering the market who normally use the existing facilities of another operator for providing their services.
There are basically two methods for charging for interconnection. One is through sharing of revenues among the interconnected operators of telecom services. The second, which is more commonly used, is to establish interconnection charges on the basis of costs...

Hope above was clear:) Plz make sure to comment if you think there is anything to be changed:)

Keep Smiling and keep learning...

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