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Termination fees are common to service industries such as cellular telephone service, subscription television, and so on, where they are often known as early termination fees. For instance, a customer who purchases cellular phone service might sign a two-year contract, which might stipulate a $350 fee if the customer breaks the contract ...
While termination rates between fixed line telecommunication operators frequently amount to less than US$0.01, mobile termination charges can be significantly higher, especially for international calls. In Europe, the average termination charge for a call varies, ranging from less than 1ct in Austria and Cyprus to much higher charges in Bulgaria.
MNO1 charges A based on the "calling rate". MNO2 charges MNO1 based on the "termination rate" (TR). MNO1 passes on the TR cost to A in full. In contrast, under the RPP model, A pays MNO1 for origination services only, while B is charged by MNO2 for the termination service. In both models, there is no alternative for terminating service.
At the end of the year Telstra and BT add up the traffic, measured in minutes, they have sent each other and settle net: if BT had sent more minutes to Telstra than vice versa, BT would pay at the settlement rate for the excess minutes. Settlement rates can be in the range of $0.10 - $2 per minute, depending on the countries involved.
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A breakup fee (sometimes called a termination fee) is a penalty set in takeover agreements, to be paid if the target backs out of a deal (usually because it has decided instead to accept a more attractive offer). The breakup fee is ostensibly to compensate the original acquirer for the cost of the time and resources expended in negotiating the ...
In 2001, BT Group launched its Answer 1571 service as a free service, available at no extra cost to its existing telephone line customers. In 2007 a charge of £1 was introduced for any month in which two chargeable calls are not made on the line (this might apply, for instance, to people who have Carrier preselect with another telephone ...
In practice, such charging rates applied only from BT lines and calls typically cost 16p per minute from non-BT landlines and up to 45p per minute from mobile telephones. In 1999, landline providers started to offer "inclusive" call packages where calls to 01 and 02 numbers were free. Within a few years most customers were on this type of plan.