New charging mechanisms have been implemented in a number of countries in Europe, where two (and in some cases more) alternative prices are applied against a single destination, with each price dependent on the origination route or country. According to the new pricing mechanism, calls within the boundaries of EU have become cheaper, while calls originating in a non-EU country have become more expensive. Most billing systems are currently unable to charge different prices depending on where the traffic originated. The solution for many carriers has been to always include the surcharge even for traffic that is originated within the EU. This solves the issue of undercharging but also results in prices which are not in line with the market. Swisslink Carrier AG came up with a solution where we can offer our partners the possibility to terminate both their EU-originated and the Non-EU originated traffic at the best possible rates and all that without any investment into new Software. Please contact us to find out more.
Origin-based pricing is the concept that calls to the same destination have different prices depending on where each call comes from. For example, a programmable voice call to a mobile number in France might cost $0.05 per minute if called from a French number, but cost $0.125 per minute if called from a US number. Origin is determined by the caller ID of the call.
Many telecom networks in Europe impose surcharges for traffic originating from certain locations. Often times, these surcharges are many multiples of the actual underlying rate. Although the details and applicability for each country and network varies, generally calls from outside Europe into Europe will be more expensive than calls within Europe.