Inter-Carrier Compensation

Inter-Carrier Compensation refers to the payments exchanged between telecommunications companies for the transmission of calls or data across their networks. When a call is made from one provider to another, the originating carrier compensates the receiving carrier for handling that call. This system ensures that each company is fairly compensated for the use of their infrastructure. It helps maintain a balanced and competitive environment in the telecom industry, ensuring that smaller or rural providers can operate alongside larger companies without losing revenue for handling incoming traffic.