Intercarrier compensation

Intercarrier compensation is the process by which different telecommunications companies settle payments for the use of each other’s networks. When a call or data travels between two carriers' networks, they exchange charges based on the type of service, distance, and the infrastructure involved. This ensures that each company is fairly compensated for handling and transmitting the traffic. Essentially, it’s the financial agreement that keeps the network ecosystem functioning smoothly, preventing disputes over who pays whom when calls or data move across different carriers' networks.