Global Trend of Origin-Based Rating Creates Major Revenue Opportunities for Network Service Providers
- What’s the News: Dozens of countries across Europe, the Middle East and Africa have implemented origin-based rating (OBR), which uses both the origination location and the termination destination of a voice call to determine the correct amount to charge. Network Service Providers may also add surcharges and penalties if the call’s identification information is inaccurate or invalid.
- Why it Matters: Network Service Providers are looking for new income streams to offset shrinking voice, data revenues and margins. If they implement OBR quickly and correctly, it can be a major new source of revenue — and enable them to avoid penalties and surcharges that can be 3,000% over standard termination rates.
BRIDGEWATER, N.J – November 14, 2022 – Origin-based rating (OBR) is an emerging global trend affecting every Network Service Provider that originates or terminates international voice traffic. Implemented quickly and correctly, OBR can be a major, much needed new source of revenue while also giving Network Service Providers the tools they need to support anti-fraud and call-blocking initiatives, including verified caller ID.
For decades, many Network Service Providers charged flat-rate termination fees regardless of the call’s originating country, the service provider and the type of connection used (mobile or fixed). But this model may no longer make financial sense due to trends such as data usage outpacing voice and the rise of over-the-top (OTT) providers.
Dozens of countries across Europe, the Middle East and Africa have implemented OBR programs, which enable Network Service Providers to identify and monetize all of those previously overlooked attributes. For example, terminating Network Service Providers can apply charges to termination rates based on the call’s originating country, service provider and line type.
Terminating Network Service Providers may also add a surcharge to the rate if calling line identification (CLID) or automatic number identification (ANI) is not accurately provided by the originating service provider, as well as charge a penalty for calls with manipulated or invalid telephone numbers. These surcharges and penalties can be more than 3,000% over a Network Service Provider’s standard termination rate and 30 times the margin generated on that traffic.
Network Service Providers can use iconectiv’s TruNumber Protect to simplify and streamline OBR management. By adding TruNumber Protect to their existing rating and billing solutions, Network Service Providers can immediately and accurately determine the correct charges and surcharges, all of which can add up to a significant amount of new, much-needed revenue.
Implementing TruNumber Protect for OBR also allows Network Service Providers to use the solution to support their anti-fraud and call-blocking initiatives. This includes the emerging global trend toward verified caller ID using standards such as Signature-based Handling of Asserted information using toKENs (SHAKEN).
“As a rapidly emerging global trend, OBR is now a must-have capability for any and every Network Service Provider that originates or terminates international voice traffic,” said Peter Ford, Executive Vice President of iconectiv. “OBR is a great opportunity for Network Service Providers to save and make money, right at a time when they need it most. iconectiv’s TruNumber Protect gives Network Service Providers everything they need to capitalize on the OBR trend.”
A new market brief from iconectiv explores OBR and can be downloaded here.