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Profit that never was – ignoring interconnect gives false profit margins

January 18, 2012 11:30 AM | Category: Pricing InnovationBetter Services,  | by Redknee

When calculating customer profitability, Communication Service Providers (CSPs) rarely factor in the true cost of interconnect. Often profitability is reported based using estimates and not actual subscriber interconnect charges. In today’s marketplace where bundles for everything from calls to data and all inclusive packages becoming more prevalent, CSPs can no longer accurately determine profit margins without inclusion of multiple interconnect partner charges, nationally and internationally. 

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