55:). Such an operator must constantly balance the need to provide cheaper rates, especially if there is strong competition, with the cost of maintaining the service at an optimum quality that is acceptable to the customer. If an operator charges too much, it risks alienating its customers, resulting in a loss of traffic and therefore revenue; if they charge too little, they will have insufficient capital to maintain the network's
84:: these charges are variable and are used to pay for the cost of the equipment to route a call from the caller's exchange to the recipient's exchange. These call charges can be calculated on a fixed per call basis, a variable basis depending on the time or distance of the call, or a combination of the two. Call charges can even vary at different times of the day. For many local calls the charge is zero;
181:, this means that the demand for call minutes varies greatly according to price. A slight decrease in price leads to a great increase in call minutes. The higher the price, the more this effect is noticeable, for both business and residential customers on international or local calls. This means that it is often the case that more revenue is achievable at lower prices, that is, E < -1.
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provider charges different tariffs at different times of the day. It was noted that at the time that the rates decreased, the traffic intensity logged by the ISP increased dramatically and then decayed over time at an exponential rate. The conclusion of the research was that by varying prices over
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These telecommunications tariffs originated with the advent of public phone service. In these times, the services provided were less complex, and customers were able to simply read the tariffs to understand how much they would be charged for each type of call. Additionally, only a few
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time, a telecommunications service provider can reduce the level of the traffic intensity at peak periods, resulting in lower equipment costs because of the reduced need to provision to meet peak demand, which in turn leads to increases in long-term revenue and profitability.
169:(FCC) declared the telecommunications market was fully competitive in the United States, and eliminated the need to file tariffs with federal regulatory agencies. However, to continue operating, many state and local governments still require telecommunications tariffs.
78:: these are fixed charges that are used to pay for the cost of the connection to the nearest exchange and the equipment to monitor that customer's phone line or service connection. They are usually paid on a monthly basis, and called rental.
336:
Vannucci, D.E., Kennedy, I.G., Barker, M., "Impact of Tariff on dial-up internet traffic: Modelling the subscriber response as a dynamic system", ITC18 Workshop for
Developing Countries, Berlin, 2003.
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associated with providing the service. However, telecommunications service providers must be careful not to over-price each service, as prices have a direct influence on demand for that service (see
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telecommunication industries participated in the market, facilitating decision-making. As the market became increasingly competitive, the need for regulation decreased. In 2001, the U.S.
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These components form a basic tariff system but, as telecommunication advances, tariff structures become increasingly more complex. Usually there is the option of calling collect (in the
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Tariffing systems vary from country to country and company to company, but in general they are based on several simple principles. Tariffs are generally made up of two components:
148:, these are usually used by companies for their sales line (in the UK these are 0800 and 0808 numbers and in the US they are 800, 888, 877, 866, 855, 844 and 833).
103:), where responsibility for charges normally paid by the caller is accepted by the recipient. Tariffs also depend on the bandwidth provided. For example, dial-up
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At a minimum, tariffs imposed must cover the cost of providing the service to the consumer. The consumer may be the final user or an intermediary such as a
351:
Kennedy I.G., "Why is
Network Planning Important?", Lecture Notes, ELEN5007 - Teletraffic Engineering, School of Electrical and Information Engineering,
43:. If a telecommunications operator cannot recover its costs, it will make a loss and the company will go bankrupt. Tariffs must also be used to cover
31:(FCC). Such tariffs outline the terms and conditions of providing telecommunications service to the public including rates, fees, and charges.
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Increasingly, in some countries, the call charges are fixed at a monthly rate and included as a supplement to the standing charges, known as
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is an open contract between a telecommunications service provider and the public, filed with a regulating body such as state and municipal
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Internet traffic research show that the traffic intensity is directly affected by the tariffs charged in connecting customers to their
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Most countries have a number sequence that enable the caller to make calls without charge, sometimes known as
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are usually charged using a completely different accounting system due to their
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Telecommunications
Traffic, Tariffs and Costs - An Introduction For Managers
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Universal
Service and Rate Restructuring in Telecommunications
157:, are used for information services, competition entries and
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Tariffs substantially in excess of the normal rate, known as
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240:"Telecommunications Tariffs: Frequently Asked Questions"
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313:"Toll Free Calls and Telecommunications Tariffs"
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246:. Florida Public Service Commission
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107:connections are charged at normal
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291:"What is a Telecom Tariff India?"
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167:Federal Communications Commission
29:Federal Communications Commission
27:and federal entities such as the
59:. Over time this will result in
47:, additional research and other
353:University of the Witwatersrand
111:costs, but connections such as
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348:, Peter Peregrinus Ltd, 1988.
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395:Telecommunications economics
173:Impact of tariffs on traffic
25:Public Utilities Commissions
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269:"What is a Telecom Tariff?"
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186:Internet Service Provider
21:telecommunications tariff
190:circuit-switched network
177:Call minutes are highly
188:(ISP). For example, a
179:elastic against price
67:Components of tariffs
35:Reasons for tariffs
197:Time-based pricing
61:customer attrition
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271:. wiseGeek
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142:free calls
244:MyFlorida
218:"Tariffs"
146:freephone
117:always on
109:telephone
99:known as
88:flat rate
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119:nature.
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220:. FCC
105:modem
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321:2014
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