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andy (Offline)
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Prepaid Prophet
 
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Join Date: 10 Dec 2004

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Default 19-04-2006, 22:51

For charged calls, the profit margin on incoming calls is about 90%, so wholesale is pretty cheap. And don't forget that the SIM network still gets income for the received calls - ie from the charge on the person calling you. Also, I suspect that the negotiation with visited networks may not include mentioning that there will be no outgoing call revenue to share, as they all use callback. So these small networks probably hardly get noticed when roaming.

So the SIM network probably figures it can waive an incoming charge of 5 or 9c per minute, and carry it in the outgoing charges, but the reasoning slipped up when people had the idea of separate callback
   
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