Cost Model for Intercarrier Compensation

The Cost Model for Intercarrier Compensation is a framework that determines how telecommunications companies fairly share costs when transmitting calls or data across networks owned by different providers. It ensures that each carrier is compensated appropriately for the expenses incurred, such as infrastructure and maintenance, while preventing overcharging. The model aims to promote fair competition and efficient resource use by setting standardized rates based on actual costs, rather than arbitrary charges. This helps maintain a balanced and reliable communication system where carriers collaborate transparently and sustainably.