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Intercarrier compensation refers to
|“||the charges that one carrier pays to another carrier to originate, transport, and/or terminate telecommunications traffic.||”|
Although the same or similar facilities are used to originate, terminate and transport all types of traffic, the rates for intercarrier compensation vary based on several factors:
- Where the call begins and ends (whether the call is local or long distance, and whether it is interstate or intrastate)
- What types of carriers are involved (incumbent local carriers, competitive local carriers, long distance providers, wireless carriers)
- What type of traffic (wireline voice calls, wireless calls, data bound for an Internet service provider).