So far, VoIP-based bilateral interconnects have followed traditional industry billing models of either bilateral agreements, or billing on an A-Z rate sheet. Most interconnections have been between incumbents or wholesale carriers seeking increased flexibility and incremental cost efficiencies in traffic exchange, not new ways to do business.
However, emerging interconnection models, including voice peering and IPX, offer much more potential to change traditional billing arrangements by increasing the number of operators for whom a bilateral connection becomes commercially interesting.
Many of these retail service providers, such as mobile operators or cable companies, are looking at ways that new pricing models could bring additional value to their offerings. Sister companies within a mobile group may consider foregoing settlement on traffic entirely, and providers may evaluate a wider variety of potential peering partners with whom they have roughly equal traffic flow – such as a cable company and mobile operator within the same market.
The result may be a significant evolution in the value proposition of wholesale carriers toward a transit-only model, and one as well where integration expertise, flexibility and the ability to enable smooth interworking between diverse environments becomes comparatively more critical.

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