Calling party pays

Since the early years of mobile communications, the scientific community and regulatory authorities have made efforts to reduce or overcome the negative effects of the monopolistic regime introduced by call termination costs.

However, the attempts have been limited to either implementing billing systems focused on the party that pays the call termination costs or on regulatory rules enforced on the MNOs.

Thus, the "Calling party pays" (CPP) principle combined with the presence of a strong regulator, and the "Receiving party pays" (RPP) principle, are deemed to eliminate the negative effects of the monopolistic market for termination rates.

This allows MNO2 to potentially exploit the originating service provider, MNO1, by establishing monopolistic termination rates.

So originating MNOs have an incentive to pass on high termination costs to their own subscribers.