Virtual Interconnect (Inbound) rate changes

Simon Woodhead

Simon Woodhead

14th January 2014

The OFCOM Narrowband Review is increasing the cost/reducing the revenue on incoming calls, effective February 1st. In the light of the rate changes we feel the need to review our charges for Virtual Interconnect.

Virtual Interconnect (Inbound) customers have a choice of two commercial models – one enjoying 100% of the wholesale interconnect income we bill other networks in return for capacity charges, the other generating no income and having no fees. Customers with unique traffic profiles may also have percentage based agreements.

Effective February 1st:

Free and percentage models

Customers taking advantage of the “free” model or any percentage based model will see no change at this time.

Charged capacity / 100% interconnect revenue

Customers paying for capacity will see a reduction in our charges. Presently the “interconnect capacity charge” is set at £0.0002 per minute (i.e. 0.02ppm) for calls to geographic numbers. We’re aware this exceeds the interconnect revenue available from February 1st, when it falls to 0.0137ppm day, 0.0062ppm evening and 0.0049ppm weekends which would make incoming calls loss-making.

Whilst other networks have taken no action or at best reduced any income to zero (or essentially zero), owing to our billing efficiency and the design of our SS7 network, we will be reducing the interconnect capacity charge on calls to geographic numbering to 0ppm. This will leave the entire income unencumbered and available for payment.

This seems like the fairest thing to do but does represent a direct loss of income to us and, accordingly, we will in return be introducing a cap on the revenue payable for such calls equivalent to the level of such (i.e. UK fixed line) outbound calls passed through Simwood. That cap will be applied in each individual time-slot (day, evening, weekend) and measured in terms of billable minutes on the same account rather than monetary value.

Calls to all other number ranges are unaffected in terms of our charges but the interconnect rates will be changing and you may wish to contact us if you’re unaware how you’ll be affected.

Customers currently “hosted” with other networks are encouraged to contact us to discuss how our charges compare to their existing network, or indeed to see how their income would vary due Simwood’s superior billing efficiency.

Related posts